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R-02-1290• • City of Clermont Resolution • No. 1290 A RESOLUTION OF THE~CITY OF CLERMONT, LAKE COUNTY, FLORIDA, ESTABLISHING THE RATE SCHEDULE FOR SANITATION SERVICE, REPEALING RESOLUTION NO. 1161 AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, it is hereby found and determined by the City Council of the City of Clermont, Lake County, Florida, that the rate schedule for residential, multi-family and commercial sanitation service shall be amended as follows: A. Monthly service fee per dwelling unit when water service is activated $21.50 B. Monthly service fee per dwelling unit when water service is not activated $10.00 C. Monthly service fee per dwelling unit for each garbage container issued to the customer in excess of one (1) -maximum of eight (8) cans $10.75 • D. Cost of replacement garbage container due to customer negligence $45.00 NOW, THEREFORE, be it resolved, that the above said rate schedule of the City of Clermont, Lake County, Florida is hereby adopted and becomes effective November 1, 2002. DONE AND RESOLVED BY THE CITY COUNCIL OF THE CITY OF CLERMONT, LAKE COUNTY, FLORIDA, THIS DAY OF , 2002. OLD S. TURVILLE, JR., AYOR Attest: J SEP E. VAN ,CITY CLERK • • • ~ MEMORANDUM TO: Wayne Saunders, City Manager FROM: Joe Van Zile, Finance Direct r DATE: October 11, 2002 RE: Resolution No. 1290 Resolution No. 1290 provides for a revised schedule of fees to be charged for sanitation service to city residents. As discussed with the City Council during the fiscal year 2002-03 budget workshops, the proposed schedule provides for the following revisions: 1) Currently, utility customers may request a sanitation waiver when they are going to be away from their residence for at least thirty (30) days. The waiver provides for no sanitation fees to be charged to their utility account during the period that the waiver has been requested. The problem with this practice is that, even though the customer may not be at home and not placing garbage at the curb to be picked up, there are still basic operating costs • incurred by the city in providing sanitation services to city residents. It is estimated that sanitation waivers cost the city in reduced revenue in the amount of $20,000 per year. Resolution No. 1290 provides for the waiver practice to be discontinued and the adoption of a reduced monthly fee to be charged to customers who have their water turned off due to being away from their residence. The reduced fee ($10.00) was determined based on analyzing the budgeted sanitation fund expenses for the fiscal year 2002-03 in respect to identifying basic operating costs and costs applicable to collection and disposal services (See attached Sanitation Expenses Allocation Schedule). 2) Currently, utility customers may request a second garbage container and be charged $17.20 per month. Upon analysis of the current costs associated with the providing of a second can, it is recommended that this fee be reduced to $10.75 per month. ( See attached Sanitation Fee Calculation Schedule -Second Can ) Please schedule for council approval. • 1 ` 4 • U Account Salaries/Benefits Safety Train Audit Fee Travel Telephone Postage/Freight Electric/Gas Landfill Charges Rentals-Equipment Comm Insurance Rep/Maint-Vehicles Rep/Main-Equip Printing Advertising Other Current Chgs Admin Svices Uncollect Accts Gas/Oil Tires/Batteries Uniforms Minor Equip Safety Equip Safety Shoes Train/Educat Deprec Cap Out -Vehicles Cap Out -Equip Computer Debt Svice C7 City of Clermont, Florida Sanitation Expenses Allocation Schedule 2002-03 Amount $402,563 (1) $2,375 $5,060 $3,500 $800 $3,900 $300 $220,000 $6,000 $15,424 $75,000 (2) $4,000 (2) $650 $200 $0 $35,952 $1,000 $22,000 (2) $6,000 (2) $1,400 $1,000 $750 $700 $300 $24,000 (2) $65,000 (2} $52,000 $3,408 $953,282 100% $21.50 $21.50 Basic Collection/ Operating Disposal $234,615 $167,948 $2,375 $5,060 $3,500 $800 $3,900 $300 $220,000 $6,000 $15,424 $33,750 $41,250 $1,800 $2,200 $650 $200 $0 $35,952 $1,000 $9,900 $12,100 $2,700 $3,300 $1,400 $1,000 $750 $700 $300 $10,800 $13,200 $29,250 $35,750 $52,000 $3,408 $448,034 $505,248 47% 53% Total Percentage Monthly Fee Rounded $10.10 $11.40 $10.00 $11.50 (1) Allocation based on a 58%/42% split (2) Allocation based on a 45%/55% split • ~ • City of Clermont, Florida Sanitation Fee Cost Calculation Schedule -Second Can • 2002-03 Garbage Can Purchase Cost- Purchase cost $38.50 spread over 10 years (38.50/120 months) Personnel Cost- Takes 1 minute to pick up second can ($25,000 per year / 124,800 minutes per year x 1 minute per pickup x 4 pickups per month) Transportation Cost- Vehicle costs related to collection and disposal of garbage ($111,300 x 36% / 12 months = $3,339 vehicle costs per month) (3,000 tons/year x 2,000 Ibs/ton / 12 months = 500,000 Ibs/month) • (Monthly vehicle costs $3,339 /Monthly Ibs 500,000 = $.006678 cost/Ib) (360 Ibs of garbage collected per month from can x $.006678 cost/Ib - Disposal Cost- Based on 3601bs of can garbage per month disposed of at $39.75 per ton ($39.75/ton / 2,000 Ibs = $.019875/Ib.) (360 Ibs. X $.019875/Ib. _ Total Rounded Cost $0.32 $0.80 $2.40 $7.16 $10.68 $10.75 L'