LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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PROPOSED ORDINANCE NO. 28-21 AMENDMENT TO CITY CODE SECTION 4-3-97 - SANITATION COLLECTION FEE AND EQUIPMENT SURCHARGE
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RECOMMENDATION:
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That City Council adopt Proposed Ordinance No. 28-21 on second reading:
AN ORDINANCE AMENDING SECTION 4-3-97 OF THE CODE OF THE CITY OF PENSACOLA, FLORIDA; PROVIDING FOR INCREASE IN SANITATION COLLECTION FEES AND THE SANITATION EQUIPMENT SURCHARGE; PROVIDING FOR A PREMIUM SERVICE FEE; PROVIDING FOR SEVERABILITY; REPEALING CLAUSE AND PROVIDING AN EFFECTIVE DATE.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
Section 4-3-97 of the City Code provides for an automatic adjustment to the monthly sanitation rate each October 1st in accordance with the Consumer Price Index (CPI). Because the CPI was not increased during FY 2021, the new CPI estimate will be 1.5% for Fiscal Year 2021 and 2.6% for Fiscal Year 2022 which amounts to an increase of $1.03 and would set the new rate at $26.15 per month. This increase would allow for full funding of the Sanitation Services operation as budgeted in the FY 2022 Proposed Budget.
In accordance with the rate study completed in 2016, City Council approved the implementation of a Sanitation Equipment Surcharge to fund capital equipment replacement. The surcharge was initially set at $1.00 effective June 1, 2017, with an increase to $2.00 scheduled for October 1, 2018, an increase October 1, 2019, to $2.04 based on the 1.9% CPI, and an increase to $3.04 based on the capital equipment replacement schedule for FY 2021. Beginning October 1, 2021, a recommended increase of $.08 or 2.6% as computed under the most recent CPI, bringing the Sanitation Equipment Surcharge to $3.12.
Additionally, an optional service will be offered for a Premium Collection Surcharge of $20.00 per month. Retrieval of recycling and garbage carts, dumping, and returning carts to their originating locations are services included. This is service is not applicable to trash (green waste/C&D).
PRIOR ACTION:
August 12, 2021-The City Council voted to approve Proposed Ordinance No. 28-21 on first reading.
September 24, 2020 - City Council adopted Proposed Ordinance No. 41-20 adjusting the monthly Sanitation Equipment Surcharge to $3.04.
September 26, 2019 - City Council adopted Proposed Ordinance No. 28-19 adjusting the monthly Sanitation Rate to $25.11 and the Sanitation Equipment Surcharge to $2.04 based on the 1.9% CPI.
FUNDING:
N/A
FINANCIAL IMPACT:
Approval of the proposed ordinance would set the Sanitation Rate at $26.15 per month, a $1.03 per month increase and would set the Sanitation Equipment Surcharge at $3.12 per month, a $.08 per month increase; the rate increase to the Sanitation Rate is based on the CPI estimate of 1.5% for FY 2021 and 2.6% for FY 2022 and the Sanitation Equipment Surcharge is based on the CPI estimate of 2.6% for FY 2022, both to be effective October 1, 2021 upon adoption at second reading. Based on an estimated 20,220 customers, the increase in the Sanitation Rate is projected to generate an additional $194,000 annually in additional Residential Refuse Container Charges and the Sanitation Equipment Surcharge is projected to generate an additional $25,800 annually for Capital Equipment Expenditures both of which have been incorporated in the FY 2022 Proposed Budget.
The Premium Collection Surcharge revenue will not be included in the FY 2022 Proposed Budget as it is currently unknown how many customers will request this service. Once implemented, revenue may be adjusted at a later date on a supplemental budget resolution appropriating the expected revenue for this service.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
6/29/2021
STAFF CONTACT:
Keith Wilkins, City Administrator
Amy Miller, Deputy City Administrator - Administration & Enterprise
John Pittman, Sanitation Services & Fleet Management Director
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Proposed Ordinance No. 28-21
PRESENTATION: No end