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HomeMy WebLinkAboutDocumentation_Regular_Tab 11D_06/11/199844 V, Memorandum To: Village Council From: Thomas G. Bradford, Village Date: June 4, 1998 Subject: Refuse and Recycling Non -Ad 1998/1999; Agenda Item Manager Valorem Assessment for FY Tequesta's Solid Waste Collection Services Franchise Agreement to with Nichols Sanitation expires on September 30, 1999. Therefore, fiscal year 1998/1999 is our last year under the existing Agreement. Based upon the terms and conditions of the existing Agreement, Gary Preston, Director of Public Works and Recreation, has estimated that the worst case increase from Nichols Sanitation based upon the consumer price index is a 1.4% increase effective October 1, 1998. Under normal circumstances, Tequesta staff would recommend to you that the assessment be increased 1.4%. However, circumstances in the solid waste collection services industry are not anywhere near normal. Last month, the Solid Waste Authority of Palm Beach County (SWA) awarded new contracts for the unincorporated areas of Palm Beach County. The contract awarded for the unincorporated Tequesta areas went to Browning Ferris Industries (BFI). The rates proposed for the upcoming fiscal year for the unincorporated Tequesta areas are half that currently paid by Tequesta. However, more importantly, the SWA has made provisions within their contracts that any municipality can piggy back an existing SWA contract. This is a significant modification to the terms and conditions of SWA agreements. We anticipate that Nichols Sanitation will desire to commence negotiations for a contract extension in the very near future. Tequesta staff is extremely confident that whether Tequesta's solid waste services franchise is negotiated, re -bid or piggy backed with the SWA contract that we will experience a significant rate decrease in FY 1999/2000. Therefore, in light of the fact that Tequesta's Refuse and Recycling fund has an existing fund balance of $27,395 and the total impact to Tequesta by virtue of the worst case scenario 1.4% increase from Nichols Sanitation will result in a total annual cost increase of $4,622, it is recommended that the Village Council not modify the A collection services rate upward, leaving the existing non -ad valorem assessment rate in effect for an additional fiscal year. Accordingly, if you concur with this recommendation, the solid waste collections services assessment rate for FY 1998/1999 will be as follows: single-family home: $146.28 multi -family home: $113.16 It is recommended that the Village Council adopt the above referenced Solid Waste Collections Services FY 1998/1999 non -ad valorem assessment rates. TGB/jar council\060998-2.sam A Village Of Te quest, JUN Q 5 1998 Memorandum To: Thomas G. Bradford, Village Manager From: Gary Preston, Director of Public Works J'P Date: June 3, 1998 Subject: Village Council Agenda Item for June 11, 1998; Adoption of the Proposed Solid Waste Collection Services FY 1999 Non -Ad Valorem Assessment On June 1, 1998, Jeff Sabin, Vice President Nichols Sanitation, and I reviewed the CPI numbers for the past year. The data that we received would indicate an approximate .0140-o increase. After receiving the CPI numbers, I met with Bill Kascavelis and reviewed the Refuse and Recycling Fund Balance. I believe .that balance is large enough to allow the Village not to increase the Refuse and Recycling rate and keep the same rate as the previous year. Those rates are as follows: • Single -Family $146.28 • Multi -Family $113.16 Please place this item on the June 11, 1998, Village Council Agenda for Councilmembers' consideration. GP/mk Preston.Agenda. Sol idWaste. 6.3. 98 Office