LTC 008-2020 Residential Soild Waste Rate Increase MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
OFFICE OF THS rITv .AANAC�FR
LTC # 008-2020 LETT R TO COMMISSION
TO: Mayor Dan Gelber and Members the City ommission
FROM: Jimmy L. Morales, City Manager don—
DATE: January 8, 2020
SUBJECT: Residential Solid Waste Rate ncrease
The purpose of this LTC is to inform the Mayor and City Commission of an increase to the residential
solid waste fee which is effective January 1, 2020.
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 $45.33 and $40.90, respectively.
The contractor has requested an annual rate adjustment consistent with the City Code and their
contract effective January 1, 2020. The new residential rate will be $29.47 per unit which includes a
2.90% increase to the collection cost and a 1.13% increase representing a pass-through in the
disposal cost. The consolidated increase percentage is 2.0%, which equates to a 1.3% and 1.4%
monthly fee increase, respectively for single and multifamily dwellings.
Single Family 2019 2020 Increase %Change
Residential Trash Fee $28.89 $29.47 $0.58 2.0%
City Service Fee 16.44 16.44 0
Total Monthly Fee $45.33 $45.91 $0.58 1.3%
Multi-Family 2019 2020 Increase %Change
Residential Trash Fee $28.89 $29.47 $0.58 2.0%
City Service Fee 12.01 12.01 0
Total Monthly Fee $40.90 $41.48 $0.58 1.4%
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 Jay Fink at Extension 26319.
JLM/ ' 1RCJ"JF
WASTE CONNECTIONS 384.0 NW 3711‘Court
Miami,FL 33142
of FLORIDA T:305.6383800
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F: 305.694.7207
www.wasteconnections.co m
November 21, 2019
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 - 2020.
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, 2020.
The new residential rate will be $ 29.47 per unit which includes a 2.90% increase to
the collection cost and a 1.13% increase in the disposal cost.The consolidated increase
percentage is 2.02%. Please find attached the relevant index and calculations as
specified in sections 14.1, 14.3 and 15.1 of the Service Agreement.
If you have any questions,please feel free to contact me.
Thank you, AA'',,
Brendan Allen
District Controller
City of Miami Beach
Residential Franchise
CPI Price Adjustment-October
Calculations in accorance with Sections 14.1,14.3 and 15.1 of the Agreement
Collection-Section 15.1 Current Rate Increase(Decrease) New Rate
(A) Calculation of Collection Component of Monthly Rate for Residential Collection Service: $ 14.44
(B) Percentage change in CPI for previous 12 month period(October 2018 to October 2019) 2.90%
(C) Calculation of Rate increase $ 0.42 $ 14.86
TOTAL COLLECTION RATE $ 14.44 $ 0.42 $ 14.86
Disposal-Section 14.3
(A) Calculation of Disposal Component of Monthly Rate Residential Collection Service: $ 14.45
(B) Percentage change in Miami Dade County Disposal Rate previous 12 month period(Oct 2018 to Sept 2019) 1.13%
(C) Calculation of Rate increase $ 0.16 $ 14.61
TOTAL DISPSOAL RATE $ 14.45 $ 0.16 $ 14.61
TOTAL MONTHLY RATE PER HOME FOR GARBAGE, BULKY&YARD WASTE SERVICES $ 28.89 2.02% $ 0.58 $ 29.47
https://www.b1s.gov/news.release/cpist02.htm
Table 2. Consumer Price Index for All Urban Consumers (CPI-U): U. S. city average, by detailed expenditure category
Table 2.Consumer Price Index for All Urban Consumers]CPI-U):U.S.city average,by detailed expenditure category,October 2041982-84=100,unless otherwise noted]
Unadjusted Recent dump I Seasonally adjusted percent change ,
Expenditure category Oct.2019-Oct 2019 Sap.2019-Ott 2019 Jul.2019-Aug .-
2019 Aug.
2019-Sept 2019 Sep.2019-Oct 2019
Garbage and trash collection(ang) 0,4T 0.4 0.1 0.4
(lj_Not seasonally adjusted.
(10)Indexes on a December 1983=100 base.
City of Miami Beach
Residential Franchise
Disposal Rate Increase percentage
County Disposal Rate per ton 2018-2019 $ 62.67
County Disposal Rate 2019-2020 $ 63.38
Increase Amount $ 0.71
Increase Percentage 1.13%
Solid Waste Management
2525 NW 62 Street•Suite 5100
MIAMI•DADE Miami,Florida 33147
COUNTY T 305-514-6666
miamidade.gov
October 1,2019
Mr. Bret Boccabella
Waste Connections of FL
3840 NW 37 Court
Miami, FL 33142
RE: Contract Disposal Fee and Transfer Fee Rates for FY2019-20
Dear Mr. Boccabella,
As we embark on a new fiscal year, I wanted to thank you for your continued partnership with the
Miami-Dade County Department of Solid Waste Management(DSWM).
Pursuant to the Consumer Price Index (CPI) referenced in Article 3, of your Agreement I would
like to take this opportunity to inform you of the changes to the contract disposal fee and transfer
fee for the 2019-2020 Fiscal Year which begins October 1, 2019. On September 19, 2019, the
Board of County Commissioners approved an increase,by the CPI of 1.13 percent to the contract
disposal fee from $62.67 to $63.38 per ton, and an increase, to the transfer fee from $13.69 to
$13.85.
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/solidwaste/or contact Johanna Faddis,
Sr. Executive Assistant at 305-514-6778.
Sincerely,
Michael J. Fernandez
Director
c: Johanna Faddis, Sr. Executive Assistant
Rick Rayborn, Assistant Controller, DSWM