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LTC 454-2020 Sanitation Rate Increase 2021 12.15.20MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov OFFICE OF THE CITY MANAGER LTC # 454-2020 LETTER TO COMMISSION TO: FROM: DATE: Mayor Dan Gelber and Members of the City Commission Raul J. Aguila, Interim City Manager December 17, 2020 SUBJECT: Residential Solid Waste Rate Increase The purpose of this L TC is to inform the Mayor and City Commission of an increase to the residential solid waste fee which is effective January 1, 2021. The City Commission adopted Ordinance 2019-4240 on February 13, 2019 which provided for an increase to the contractor collection costs of residential solid waste as dictated by a published consumer price index as well as the pass-through disposal cost by Miami-Dade County. The City has a contract with Waste Connections of Florida, Inc. to provide residential solid waste collection and disposal. The contract commenced on January 1, 2019 with a unit rate of $28.89 per unit per month. There is an additional cost component charged to the residential customers that represents City expenses associated with litter control services, illegal dumping, pre/post storm related debris removal and administrative fees related to management of the contract and billings. The cost for residential waste services to single family and multi-family dwellings with eight units or less is currently $45.91 and $41.48, respectively. The contractor has requested an annual rate adjustment consistent with the Residential Agreement Sections 14.3 Disposal, 15.1 Collection and the City Ordinance effective January 1, 2021. The consolidated increase percentage is 1.6%, which equates to a 1.1 % for single and 1.2% for multi- family dwellings monthly fee increase respectively. The new residential rate will be $29.96 per unit. Single Family 2020 2021 Increase % Change Residential Trash Fee $29.47 $29.96 $0.49 1.6% City Service Fee 16.44 16.44 o Total Monthly Fee $45.91 $46.40 $0.49 1.1 % Multi-Family 2020 2021 Increase % Change Residential Trash Fee $29.47 $29.96 $0.49 1.6% City Service Fee 12.01 12.01 o Total Monthly Fee $41.48 $41.97 $0.49 1.2% The new solid waste rates will be reflected on utility bills reflecting January water and sewer consumption, which will be forthcoming later this month. If there are any questions, please do not hesitate to contact myself or Roy Coley at Extension 27380. RJ~ DocuSign Envelope ID: EDA0DD0D-E48D-426B-AFDB-2D997D16628E Department of Solid Waste Management 2525 NW 62nd Street . Suite 5100 Miami, Florida 33147 T 305-514-6666 miamidade.gov September 17th, 2020 Mr. Jimmy L. Morales City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 REFERENCE: Contracted Disposal Fee and the Transfer Fee for FY 2020 -21 Dear Mr. Morales: As we embark on a new fiscal year, I would like to thank you for your continued partnership with the Miami-Dade County Department of Solid Waste Management (DSWM). Pursuant to the Waste Disposal Inter-Local Agreement, I would like to take this opportunity to inform you of the changes to the contract disposal fee and the transfer fee for the 2020 -21 Fiscal Year. On September 17, 2020, the Board of County Commissioners approved an increase, by the Bureau of Labor Statistics Consumer Price Index (CPI) of 0.29 percent, to the contract disposal fee from $63.38 to $63.57 and transfer fee from $13.85 to $13.90. At DSWM, we are committed to delivering excellence every day and providing our customers with exceptional waste disposal and colle ction services. If you have questions or concerns about our disposal fees or any other service that the Department provides, please visit our website at www.miamidade.gov/dswm or contact Ms. Bolanle Shorunke-Jean, Director of the Budget and Fiscal Management Division, at 305 -514-6408. Sincerely, Michael J. Fernandez, Director Department of Solid Waste Management c: Michael W. Ruiz, Assistant Director, Administration, DSWM Bolanle Shorunke-Jean, Division Director, Budget and Fiscal Management, DSWM Raul Trabanco, Assistant Controller, DSWM DocuSign Envelope ID: EDA0DD0D-E48D-426B-AFDB-2D997D16628E 3840 NW 37th Court Miami, FL 33142 T: 305.638.3800 F: 305.694.7207 www.wasteconnections.com November 19, 2020 Jay J. Fink, P.E., Assistant Director Public Works Department 1700 Convention Center Drive Miami Beach, FL 33139 Sent Via email: JayFink@miamibeachfl.gov Re: Collection and Disposal of Residential Solid Waste, Yard Debris and Bulk Waste and for the Operation of the City’s Green Facility- Notification of Annual CPI – 2021. Dear Mr. Fink: We respectfully request an annual rate adjustment for the above referenced Service Agreement. The effective date for increase will be from January 1-December 31, 2021. The new residential rate will be $ 29.96 per unit which includes a 3.00% increase to the collection cost and a 0.03% increase in the disposal cost. The actual collection increase was 3.5%, but was capped at 3.0%. The consolidated increase percentage is 1.66%. Please find attached the relevant index and calculations as specified in sections 14.1, 14.3 and 15.1 of the Service Agreement. The increase to the new rate at the Transfer Station is $21.20 per yard. If you have any questions, please feel free to contact me. Thank you, Brendan Allen District Controller DocuSign Envelope ID: EDA0DD0D-E48D-426B-AFDB-2D997D16628E Ci t y o f M i a m i B e a c h Re s i d e n t i a l F r a n c h i s e CP I P r i c e A d j u s t m e n t - J a n u a r y 2 0 2 1 Ca l c u l a t i o n s i n a c c o r d a n c e w i t h S e c t i o n s 1 0 . 1 , 1 4 . 1 , 1 4 . 3 a n d 1 5 . 1 o f t h e A g r e e m e n t Co l l e c t i o n - S e c t i o n 1 5 . 1 Cu r r e n t R a t e New Rate (A ) Ca l c u l a t i o n o f Co l l e c t i o n C o m p o n e n t o f M o n t h l y R a t e f o r R e s i d e n t i a l C o l l e c t i o n S e r v i c e : 14 . 8 6 $ (B ) Pe r c e n t a g e c h a n g e i n C P I f o r p r e v i o u s 1 2 m o n t h p e r i o d ( O c t o b e r 2 0 1 9 t o O c t o b e r 2 0 2 0 ) 3. 0 0 % (C ) Ca l c u l a t i o n o f R a t e i n c r e a s e 0.45 $ 15.31 $ TO T A L C O L L E C T I O N R A T E 14 . 8 6 $ 0.45 $ 15.31 $ Di s p o s a l - S e c t i o n 1 4 . 3 (A ) Ca l c u l a t i o n o f D i s p o s a l Co m p o n e n t o f M o n t h l y R a t e R e s i d e n t i a l C o l l e c t i o n S e r v i c e : 14 . 6 1 $ (B ) Pe r c e n t a g e c h a n g e i n M i a m i D a d e C o u n t y D i s p o s a l R a t e p r e v i o u s 1 2 m o n t h p e r i o d ( O c t 2 0 1 9 t o S e p t 2 0 2 0 ) 0. 3 0 % (C ) Ca l c u l a t i o n o f R a t e i n c r e a s e 0.04 $ 14.65 $ TO T A L D I S P O S A L R A T E 14 . 6 1 $ 0.04 $ 14.65 $ TO T A L M O N T H L Y R A T E P E R H O M E F O R G A R B A G E , B U L K Y & Y A R D W A S T E S E R V I C E S 29 . 4 7 $ 1. 6 6 % 0.49 $ 29.96 $ Gr e e n w a s t e T r a n s f e r S t a t i o n S e c t i o n 1 0 . 1 (A ) Ca l c u l a t i o n o f D i s p o s a l Co m p o n e n t o f M o n t h l y R a t e R e s i d e n t i a l C o l l e c t i o n S e r v i c e : 20 . 5 8 $ (B ) Pe r c e n t a g e c h a n g e i n M i a m i D a d e C o u n t y D i s p o s a l R a t e p r e v i o u s 1 2 m o n t h p e r i o d ( O c t 2 0 1 9 t o S e p t 2 0 2 0 ) 3. 0 0 % (C ) Ca l c u l a t i o n o f R a t e i n c r e a s e 0.62 $ 21.19 $ TO T A L D I S P O S A L R A T E 20 . 5 8 $ 0.62 $ 21.20 $ TO T A L M O N T H L Y R A T E F O R T H E G R E E N W A S T E T R A N S F E R S T A T I O N 20 . 5 8 $ 3. 0 0 % 0.62 $ 21.20 $ In c r e a s e ( D e c r e a s e ) Do c u S i g n E n v e l o p e I D : E D A 0 D D 0 D - E 4 8 D - 4 2 6 B - A F D B - 2 D 9 9 7 D 1 6 6 2 8 E ht t p s : / / w w w . b l s . g o v / n e w s . r e l e a s e / c p i . t 0 2 . h t m Ta b l e 2 . C o n s u m e r P r i c e I n d e x f o r A l l U r b a n C o n s u m e rs ( C P I - U ) : U . S . c i t y a v e r a g e , b y d e t a i l e d e x p e n d i ture category Ta b l e 2 . C o n s u m e r P r i c e I n d e x f o r A l l U r b a n C o n s u m e r s ( C P I - U ) : U . S . c i t y a v e r a g e , b y d e t a i l e d e x p e n d i t u r e c a t e g o r y , O c t o b e r 2 0 2 0 [1 9 8 2 - 8 4 = 1 0 0 , u n l e s s o t h e r w i s e n o t e d ] Ex p e n d i t u r e c a t e g o r y Oc t . 2 0 1 9 - O c t 2 0 2 0 Se p . 2 0 2 0 - O c t 2 0 2 0 J u l . 2 0 2 0 - A u g 2 0 2 0 A u g . 2 0 2 0 - S e p t 2 0 2 0 S e p . 2 0 2 0 - O c t 2 0 2 0 Ga r b a g e a n d t r a s h c o l l e c t i o n (1 )( 10 ) 3. 5 0 . 3 0 . 5 0 . 2 0 . 3 (1 ) No t s e a s o n a l l y a d j u s t e d . (1 0 ) In d e x e s o n a D e c e m b e r 1 9 8 3 = 1 0 0 b a s e . Se a s o n a l l y a d j u s t e d p e r c e n t c h a n g e Un a d j u s t e d p e r c e n t c h a n g e Do c u S i g n E n v e l o p e I D : E D A 0 D D 0 D - E 4 8 D - 4 2 6 B - A F D B - 2 D 9 9 7 D 1 6 6 2 8 E