Title
Amend City Code - Proposed Solid Waste Disposal Facility Fee Increase and Permit Fee Elimination (Ordinance G-7100)
Description
Request the City Council to amend section 27-53 of the Phoenix City Code to increase the solid waste disposal fee applicable to commercial customers disposing solid waste at City facilities to $55 a ton and to eliminate the solid waste disposal facility permit fee with an effective date of May 22, 2023. The solid waste disposal facility fee was last raised in July 2021.
Report
Summary
The Public Works Department (PWD) assists in providing a safe and aesthetically acceptable environment through effective, integrated management of the community's solid waste stream, including collection, disposal, source reduction and recycling activities. Annually, PWD processes over 480,000 transactions between both the 27th Avenue Transfer Station and the North Gateway Transfer Station.
Over the past year, the Solid Waste utility has seen a significant increase in costs related to inflationary pressures such as fuel, equipment, waste transportation, and recycling processing. To address these increases, PWD developed a solid waste financial plan to determine the revenue requirements that support the operating budget for the two City-owned transfer stations, landfill, and composting facility. On Dec. 1, 2022, the Solid Waste Rate Advisory Committee recommended increasing revenue by raising the disposal fee for commercial customers at the transfer stations and landfill by $11 a ton, which would change the current rate of $44 a ton to $55 a ton with an effective date of May 22, 2023. The solid waste disposal facility fee was last raised in July 2021 as part of the Solid Waste Service Rate Increase approved by City Council on Feb. 11, 2020.
In addition, the City requires commercial customers to obtain a solid waste permit when using the City's disposal facilities. The permit allows the City to maintain accurate commercial customer records, including vehicle tare weights and streamlines the customer service experience. Currently, the City charges five dollars to obtain each permit. By eliminating this permit fee, it can be absorbed into the comprehensive disposal facility fee beginning May 22, 2023.
Concurrence/Previous Council Action
The Community and Cultural Investment Subcommittee recommended this item for approval on Feb. 1, 2023, by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Works Department.