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HomeMy WebLinkAbout2022-05-03 OrdinanceItem Number: 13. May 3, 2022 O rd inan ce amen d ing Titl e 3, en titled “F in ance, Taxation an d F ees,” Chap ter 4, en titled “Sch edule of F ees, Rates, Charg es, Bonds, F in es and Pen alties,” Articl e 5, en titled , “Sol id Waste Disp osal ”. (Second Consid eration) Prepared B y:J acklyn F leagle, A ssistant F inance Director Reviewed By:Nicole Davies, F inance Director Geoff Fruin, City Manager F iscal I mpact:Solid Waste Disposal rate adjustments for F Y2023 amounting to an increase of approximately $570,000 per year in revenues for the Refuse fund. Recommendations:Staff: Approval Commission: N/A Attachments:Notice of Public Hearing Ordinance Executive S ummary: T he F inance Department requests the City Council hold a public hearing for A pril 19, 2022 to consider amending Title 3, Chapter 4 of the City Code. Title 3, Chapter 4 amendments include an increase in residential solid waste collection fees for yard waste collection by $1.50 per dwelling unit per month, an increase of additional yard waste carts over 1, per month by $1.50 each, an increase of residential solid waste collection fees for curbside solid waste disposal by $1.00 per dwelling unit per month, an increase of additional refuse carts over 1, per month by $1.00 each, and an increase in residential solid waste collection fees for curbside recycling fees by $.50 per dwelling unit per month in fiscal year 2023. Background / Analysis: Title 3, Chapter 4 of the City Code is the ‘S chedule of Fees, Rates, Charges, B onds, F ines and Penalties’ Solid Waste Disposal Rate Adjustments I n the fiscal year 2021, the R efuse C ollection f und had an ending unassigned f und balance of $1,268,644. T he revised projected fund balance f or fiscal year 2022 is estimated to be $1,137,691, a 10.3% decrease. T he City’s curbside program has seen consistent increases in trash, recycling and organics usage over the past three years, while fuel, equipment, and labor costs have increased for all three services. R ecycling tonnages are up an average of 14% over the past three fiscal years since the transition to single stream and ongoing outreach efforts. Organics (f ood and yard waste) weights have increased an average of 30% over the past three fiscal years since the addition of food waste to the yard waste program several years ago. W ithout the $1.50 per unit per month rate increase for yard waste f ees to $3.50 for the f irst and additional carts, the $0.50 per dwelling unit per month increase for curbside recycling, and the $1.00 per dwelling unit per month f or the first and additional carts increase for curbside solid waste disposal, the fund balance would continue to decline. T he R efuse Collection fund is an enterprise or business-type fund that is expected to be self- funding. T he primary solution is to review user rates to ensure that the f und is generating sufficient revenue to cover both operating and capital expenses. B y implementing the solid waste rate increases mentioned previously in fiscal year 2023, the anticipated declines in the fund’s cash balance is greatly reduced. This solution also provides for a much healthier and sustainable fund over time versus financing the necessary capital improvements through revenue bonds or other debt. T he proposed fee increases are expected to generate enough revenue to support the increase in operational costs and ensures that the Refuse Collection fund remains a self -f unding enterprise. T he expected increase in revenues f or the R efuse Collection fund is approximately $570,000 a year. AT TAC HM E NT S : Description Notice of Public Hearing Ordinance Notice o f Public Hearing Notice is hereby given that a public hearing will be held at which the Council will consider: Ordinance amending Title 3, Entitled "Finances, Taxation and Fees," Chapter 4, entitled "Schedule of Fees, Rates, Charges, Bonds, Fines and Penalties," of the City Code to increase solid waste disposal charges and fees. Copies of the proposed ordinance are on file for public examination in the office of the City Clerk, City Hall, 410 E. Washington St., Iowa City, Iowa. Copies are available by telephoning the City Clerk at 319/356-5043 or emailing kellie-fruehling@iowa-city.org. The public hearing will be held at 6:00 p.m. on April 19, 2022, in the Emma J. Harvat Hall, City Hall, Iowa City. Persons wishing to make their views known for Council consideration are encouraged to participate. Kellie K. Fruehling, City Clerk Prepared by: Jacklyn Fleagle,Assistant Finance Director, 410 E. Washington Street, Iowa City, IA 52240; 319-356-5063 Ordinance No. Ordinance amending Title 3, entitled "Finances, Taxation and Fees," Chapter 4, Entitled "Schedule Of Fees, Rates, Charges, Bonds, Fines, and Penalties," Section 5, entitled "Solid Waste Disposal". Whereas, pursuant to Chapter 384, Code of Iowa (2021), the City of Iowa City is authorized to establish and provide for the collection of rates to pay for the City's utility systems, including the City's solid waste disposal services at the municipal landfill; and Whereas, the City's financial policies dictate that the Refuse fund shall be self-supporting; and Whereas, the City's current solid waste disposal rate structure does not provide sufficient revenue to fund the necessary operations; and Whereas, the Iowa City Council intends to provide a solid waste disposal rate and fee structure that makes the City's refuse utilities self-sustaining; and Whereas, the Iowa City City Council needs to increase residential solid waste collection fees for yard waste collection by $1.50 per dwelling unit, per month, to increase additional yard waste carts over 1, per month by $1.50 each, to increase curbside household refuse for solid waste disposal by $1.00 per dwelling unit, per month, to increase the additional refuse carts over 1, per month by $1.00 each, and to increase curbside recycling by $.50 per dwelling unit, per month on July 1, 2022, to adequately finance the municipal refuse operational costs. Now, therefore, be it ordained by the City Council of the City of Iowa City, Iowa: Section I. Amendment. Title 3, entitled "City Finances, Taxation, and Fees," Chapter 4, entitled "Schedule of Fees, Rates, Charges, Bonds, Fines, and Penalties," Section 3-4-5, entitled "Solid Waste Disposal," of the Iowa City Code is hereby amended by deleting it in its entirety and replacing it as follows: 3-4-5: Solid Waste Disposal: Description Of Fee, Charge, Bond, Fine Or Penalty Charge Yard waste collection fees: Per dwelling unit, per month $3.50 — — Low income discount 75 percent of monthly charge Untreated wood waste Free Additional yard waste carts over 1, per month $3.50 Collection of large items fees: 11 Appliance collection, per item collected $20.00 II Ordinance No. Page 2 Description Of Fee, Charge, Bond, Fine Or ' Penalty Charge Bulky solid waste $12.50 per stop and 1 item; $6.00 , per additional items I� Tire collection $3.75 per tire; $7.50 tire and rim II Residential solid waste collection fees: Curbside household refuse: — _ 1 Per dwelling unit, per month $13.00 II Low income discount 75 percent of monthly charge ++ Per sticker for each additional bag beyond $ 2.50 each I' each unit's monthly allotment 1 Additional refuse carts over 1, per month $13.00 each jl - Per 2 rooming units, per month (in addition to $15.90 I the dwelling unit fees) l' I, Electronic waste TVs or monitors $21.50 per item I 1 Curbside recycling: i. Per dwelling unit, per month $6.50 II Low income discount 75 percent of monthly charge Iowa City community compost $20.00 per ton, $2.00 minimum I: Wood chip mulch No charge I' Deposit and delinquency fee combined for City water and/or sanitary sewer and/or solid waste collection accounts: Residential owner account, per combined $0.00 IjI I residential service for City water and/or sanitary sewer and/or solid waste collection service Il Residential tenant account, per combined $120.00 1� residential service for City water and/or sanitary Ii sewer and/or solid waste collection service II 5 percent delinquency charge on current billed 5 percent current billed portion. Can portion of the outstanding amount on combined be waived once every 12 months II water and/or sanitary sewer and/or solid waste I: account that is not paid within 22 days of billing " date I' Delinquency deposit for combined water and/or An amount equal to an average 2- - I sanitary sewer and/or solid waste collection service month billing for the delinquent 1 Ordinance No. Page 3 - Description Of Fee, Charge, Bond, Fine Or I Penalty Charge I account. Can be waived if the I account holder enrolls in SurePay i Special wastes disposal fees: ii Disposal of special wastes (except for asbestos ' 2 times the landfill use fees in this containing material and contaminated soils) section Minimum fee ' 2 times the landfill use fee for 1 ton ii Asbestos containing material (ACM): LI Nonfriable ACM, from Iowa City premises $100.00/ton subject to a Property Tax and City owned property Nonfriable ACM, from other locations $105_00/ton 11 Friable ACM, from Iowa City premises subject $100.00/cubic yard I: to a Property Tax and City owned property II Friable ACM, from other locations $105.00/cubic yard I. ji Minimum fee for any regulated ACM $100.00 i I Contaminated soil: $50.00/ton Minimum fee for contaminated soil $150.00 11 II Disposal of large items fees (see also Collection of large items fees above): Appliance disposal fees: II iIll Commercial per item disposed $1.00/cubic foot Residential per item disposed $12.50 (at landfill scale house) I`I Tire disposal fee: Per pound — --- --- _ $0.15 — — II Subject to minimum fee $3.00 ,, Untreated wood waste and yard waste: $24.00/ton II ----- -- --- - ---- - - - ----------- - -------- -- --- - - 1.1 Minimum $2.00 Ii Landfill use fees: 1 Arriving at the landfill with an unsecured or uncovered load: First instance in trailing 12 months Warning 1I Ordinance No. Page 4 Description Of Fee, Charge, Bond, Fine Or Ii Penalty Charge Second or subsequent instances in trailing 12 $50.00 months Electronic waste $3.00 per item; TVs or monitors $15.00 per item Solid waste from Iowa City premises subject to a Property Tax and City owned property: Total landfill fee per ton (includes State fee per $45.00 111ton) — — — I All other solid waste: Total landfill fee per ton (includes State fee per $50.00 ton) �I Minimum fee in lieu of tonnage fees (300 pounds li or less): Solid waste from Iowa City premises subject to $7.00 a Property Tax and City owned property All other solid waste $7.50 — I Section II. Repealer. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section III. Severability. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. Section IV. Effective Date. This Ordinance shall be in effect on July 1, 2022. Passed and approved this day of , 20 Mayor Attest: City Clerk Approved by City Attorney's Office—04/14/2022 Ordinance No. Page 5 It was moved by and seconded by that the Ordinance as read be adopted, and upon roll call there were: AYES: NAYS: ABSENT: Alter Bergus Harmsen Taylor Teague Thomas Weiner First Consideration 04/19/2022 Vote for passage: AYES: Alter, Bergus, Harmsen, Taylor, Teague Thomas, Weiner. NAYS: None ABSENT: None Second Consideration 05/03/2022 Vote for passage: AYES: Alter, Bergus, Harmsen, Taylor, Teague, Thomas, Weiner NAYS: None ABSENT: None Date published