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HomeMy WebLinkAboutOrdinance 4765 O /E� • City of Fayetteville • ��Zp�dS Staff Review Form � 7�5 ' City Council Agenda Items r or Contracts �tte Qin 9/20/2005 City Council Meeting Date Gary Dumas Solid Waste & Recycling Operations Submitted By Division Department Action Required: Approval of Amendment to Code of Ordinances Garbage and Trash Section 50.40 (A) Residential Service to Provide for an Annual Rate Adjustment based upon the prior year Consumer Price Index. $ 75,934.00 $ Cost of this request Category/Project Budget Program Category / Project Name 5500.0950.4430.21 $ Solid Waste Fund Revenue Account Number Funds Used to Date Program / Project Category Name $ Solid Waste Project Number Remaining Balance Fund Name Budgeted Item O Budget Adjustment Attached O Previous Ordinance or Resolution # ,9'n, Depa ment Di ector C�Date Original Contract Date: 2, /G't�✓ l�� G � Original Contract Number: City Attorney Received in City Clerk's Office Finan a and Internal Service Director Date Received in Mayor's Office QE Mayor Date Comments: 09 - 02 - 05PO4 : 52 RCVD Fye evl le ARKANSAS OPERATIONS DIRECTOR Agenda Request To: Mayor and Cit Council From: Gary Dumas Date: August 31 , 2005 Re: Amendment to Code of Ordinances Garbage and Trash Section 50.40 (A) Residential Service to Provide for an Annual Rate Adjustment based upon the prior year Consumer Price Index Recommendation Staff recommends approval of Amendment to Code of Ordinances Garbage and Trash Section 50.40 (A) Residential Service to Provide for an Annual Rate Adjustment based upon the prior year Consumer Price Index. Background During the summer of 2002 the Staff and Council developed a fee structure to implement the automated pay-as-you-throw residential collection system now in place. There has been no fee adjustment since that date even though since January 2003 and June 2005 the Comsumer Price Index has increased by 8%. The Solid Waste System runs as a municipal enterprise and has a very narrow margin that is designed to allow for timely program growth of additional vehicles, staff, and equipment as required by the increasing customer base. This increasing customer base will incrementally always require additional capital investment and additional operating funds to address the increased number of customers. These expansions will involve additional routes, additional drivers, and additional vehicles. As this customer growth occurs, expansion or replacement of the physical plant, the buildings (the transfer station and materials recover facility) will be necessitated. While these changes are not in the near future some financial planning to generate adequate resources for these events should be in place. Discussion The Solid Waste and Recycling Enterprise Fund this next year will be required to add two residential service vehicles to address customer growth and service reliability. These vehicles in 2002 had a cost of $ 196,488 each. Added personnel will also be required for the continued level of service being provided. In order to address continuing growth pressures without reliance upon sales tax, general fund, or any non-enterprise resources some revenue enhancement is necessary. The staff has worked diligently to expand solid waste and trash services in order to reduce overhead costs and to generate income to help to pay for the necessary residential and 113 West Mountain Faymeville, Arkans i 72701 Office phone - 479-575-8330 Fax - 479-575-8257 e-mail - gdumas&i.rayetteville.anus commercial program gr•h as it occurs. These efforts have beesuccessful in delaying any discussion of rate increases during the last three years even though all costs have been increasing. This effort to enhance revenue will continue subject to City Council approval. However, these efforts are only partially off-setting the increases in program expense which have occurred during the past three years and which are expected to continue at current or increasing rates. In order to address the enterprise revenue needs incrementally on an annual basis rather than be required to take large rate increases to our customers the following is proposed. The current residential fee schedule is //QQ. 50.40 Rates For Services 64) 1q)q) (A) Residential service. Garbage and trash shall be collect from residential customers one time each week for the following rates: Garbage rash User Fee Schedule Container Fixed Graduated Cart Monthly Volume Fee Volume capitalization Rate Fee included in base rate 32 $5. 76 2.06 0.37 $8. 19 64 $5. 76 6.24 0.49 $ 12 .49 96 1 $5 . 76 $11 .43 1 0. 55 $17.74 The proposed residential fee schedule is proposed to be increased by the annual cost of living index. That amount for 2006 would be 3% based upon the CPI, All Urban Consumers, Not Seasonally Adjusted, U. S. City Average, All Items, 1St Half of 2005. The proposed would be as follows: Garbage rash User Fee Schedule Container Monthly Volume Rate 32 $8.43 64 $12.86 96 $ 18.27 This increase would range from $0.24 to $0.53 per month or $2.88 to $6.36 per year. On an individual basis, this would be a minor increase but on a system basis this should generate adequate revenue over time to maintain the residential collection system without the major rate increases that have been very problematic when occurring on 5 to 10 year intervals. This increase is proposed to be effective on January 1 , 2006. Commercial rates are being evaluated currently. Commercial rates are much more complex as different types of users generate different tonnages in the same size container. For example, a restaurant would generate more expense to the system with an 8cubic yard container than an office with a similar container. For this reason, during the past 113 West Mountain Fayetteville, Arkansas 72701 Office phone - 479-575-8330 Fax - 479-575-8257 e-mail - gdumas@ci.rayelteville.anue month Solid Waste and Pecycling has been conducting an audit of all commercial businesses, weighing containers in an effort to collect enough data to create a more equitable commercial rate structure. The commercial rate structure will be before the Council during the budget review period. 113 Wise Mountain Fayetteville, Arkansas 72701 Office phone - 479-575-8330 Fax - 479-575-8257 e-mail - gdumasCaci.raye0evillcami ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 50: GARBAGE AND TRASH, OF THE CODE OF FAYETTEVILLE, TO ALLOW FOR ANNUAL RATE ADJUSTMENTS FOR RESIDENTIAL SERVICE, BASED UPON THE CONSUMER PRICE INDEX (CPI) AS PUBLISHED BY THE U.S. DEPARTMENT OF LABOR. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That §50.40(A) Code of Fayetteville is hereby amended by inserting the following after subsection (3): (4) The Garbage/ Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) as published by the U.S. Department of Labor . ' PASSED and APPROVED this 20th day of September;2©0 . APP VED: / B COOD ' Mayor ,l A`SI TEST: BY: A fSONDRA ITH; G'ty Clerk i U . S . Department of Labor Bureau of Labor Statistics .. Bureau of Labor Statistics Data www. bis. gov R Search I A-Z Index BLS Home I Programs & Surveys i Get Detailed Statistics I Glossary What's New Find It! In DOL Change Output From: 1999 i = To: 2005 i3 Options: P-- r' include graphs NEW! More Formatting ODtionsy Data extracted on: August 31, 2005 (5:08:59 PM) Consumer Price Index - All Urban Consumers 12 Months Percent Change Series Id : CUUROOOOSAO Not Seasonally Adjusted Area : U . S . city average Item : All items Base Period : 1982 - 84 =100 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 1999 1 . 7 1 . 6 1 . 7 2. 3 2. 1 2. 0 2. 1 2. 3 2. 6 2. 6 2. 6 2. 7 2. 2 1 . 9 2. 5 2000 2. 7 3 . 2 3. 8 3. 1 3 . 2 3 . 7 3 . 7 3.4 3 . 5 3.4 3 .4 3. 4 3.4 3. 3 3. 5 2001 3. 7 3. 5 2. 9 3. 3 3. 6 3. 2 2 . 7 2. 7 2. 6 2. 1 1 . 9 1 . 6 2. 8 3. 4 2 . 2 2002 1 . 1 1 . 1 1 . 5 1 . 6 1 . 2 1 . 1 1 . 5 1 . 8 1 . 5 2. 0 2 . 2 2.4 1 . 6 1 . 3 1 . 9 2003 2. 6 13. 0 13 . 0 2. 2 12. 1 12. 1 12. 112. 2 2. 3 12. 0 1 . 8 11 . 9 12 . 3 12. 5 2. 0 2004 1 . 9 1 . 7 1 . 7 2 . 3 3. 1 3. 3 3 . 0 2. 7 2. 5 3 . 2 3 . 5 3. 3 2 . 7 2. 3 3. 0 2005 3 . 0 3. 0 3 . 1 3 . 5 2. 8 2. 5 3 . 2 3. 0 Frequently Asked Questions I Freedom of Information Act i Customer Survey Privacy & Security Statement i Linking to Our Site I Accessibility U.S. Bureau of Labor Statistics Phone: (202) 691-5200 Postal Square Building Fax-on-demand: (202) 691-6325 2 Massachusetts Ave., NE Data questions: blsdata staff0bis.gov Washington, DC 20212-0001 Technical (web) questions: webmasterl&bls.aov Other comments: feedback(&bls.aov Clarice Pearman - Ord. 4765 Page 1 From: Clarice Pearman To: Dumas, Gary Date: 9/28/05 4:51 PM Subject: Ord. 4765 Gary, Attached is a copy of the ordinance passed by City Council, September 20, 2005 amending Chapter 50. ArkansaoDemocrat - Oazette NORTHWEST ARKANSAS EDITION "NorduvestArkajuaemost Wide yr Read Newspaper" AFFIDAVIT OF PUBLICATION I, Erin Emis , do solemnly swear that I am the Legal Clerk of the Arkansas Democrat-Gazette/Northwest Arkansas Times newspaper, printed and .pub.lished .in Lowell, Arkansas, and that .from .my own personal .knowledge and reference to the files ofsaidpublication , that advertisement of: was inserted in the regular editions on PO# / ** Publication Charge : $ Subscribed and sworn to before me this day of 2005. r i ems. Williams Notaryy -Pub-lic Notary Public State of Arkansas My Commission Expires:My commission Expires October 14 _ OIIDINMCE NO. 4763 AN ORDINANCE AMENDING CHAPTER 50: • ** GARBAGE AND TRASH, OF THE CODE OF FAYET. T 7Please do not pay from Affidavit. GARB E. TO D TRA FOR ANNUAL RATE AwUST- VMEMS FOR RESIDENTIAL SERVICE, BASED UPON11 . An invoice will be .Sent. THE CONSUMER PRICE INDEX (CPI) AS PUBLISHED ggNAN5A5 BY THE U.S. DEPARTMENT OF LABOR. BE R ORIMMMED BY THE CITY COUNCIL OF THE CRY OF FAYETTEVILLE• ARN11N3A6: Section T . That §50.40W Code of FeyenoWle Is hereby amerged by inserting the following after sub. section (3): 14) The OarbagerGash,UM Fee SW be adjusted enrnteN basad upon the Consumer Prim Intl (CPO W eAkhed by the U.S. Department of Leber . PASSED'MM "MOVED tHs 20th day of September, 2005. APPROVED: By: DAN GOODY• Mayor ATTEST: By: WHOM EMRH• city Clink P.O. BOX 1607 212 N. EAST AVENUE • FAYETTEVILLE, ARKANSAS 72701 • 479-571 -6470 ORDINANCE NO. 4765 AN ORDINANCE AMENDING CHAPTER 50: GARBAGE AND TRASH, OF THE CODE OF FAYETTEVILLE, TO ALLOW FOR ANNUAL RATE ADJUSTMENTS FOR RESIDENTIAL SERVICE, BASED UPON THE CONSUMER PRICE INDEX (CPI) AS PUBLISHED BY THE U.S. DEPARTMENT OF LABOR. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That §50.40(A) Code of Fayetteville is hereby amended by inserting the following after subsection (3): (4) The Garbage/Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) as published by the U.S. Department of Labor . PASSED and APPROVED this 20th day of September, 2005. �"%%%` i %JTR&lIe o'`haG�'G\TY .oF t G0APPRO 0' €c-) ' . p ; By: c * FAYETTEVILLE * D COODY, Mayor ewe ''a,NGTON G�.``• ATTEST: " uu1umitt' By: 601� - SONDRA SMITH, City Clerk