The Sanitation Division pays for recycling under a Memorandum of Understanding between Miami-Dade County (County) and City of Miami Beach for Inclusion in the Miami-Dade County Curbside Recycling Program (the Program) which was executed on January 28, 2009. Under Section VI, Payments, at paragraph (3), states the following:
During the first fiscal year (between October 1, 2008 and September 30, 2009) of this Interlocal Agreement and annually thereafter through the final year of the Agreement, the unit prices paid by the Municipality to the County for the services to be provided will be adjusted by the percent change in the Consumer Price Index (CPI), All Urban Consumers, South Urban, All items, annual average during the previous Service Year, not to exceed three percent (3%) based on the change in such Index from October 1 through September 30 of the previous year. The source of the consumer price indices applied in the annual adjustment to the Collection Payment shall be the U. S. Bureau of Labor Statistics. Each adjustment shall be in effect for the following 12-month period. The Amount paid per Household shall be extended to all Households served based on the Household counts provided by the County in accordance with provisions of this Agreement.
When the County began collecting single stream recyclables eight years ago, at a cost of $3.32 per household, the City absorbed these costs with no increase in price to residents. Over the years it has increased and the City continued to absorb the increase. Miami-Dade County is proposing a $0.10 or 2.71% CPI increase to the recycling fee for the fiscal year 2019, which will increase the fee from $3.52, per month, per household, to $3.62, per month, effective October 1, 2018.
The Sanitation Division can no longer subsidize the recycling fee. The Administration is requesting that the County recycling fee be passed through and appear as a separate item on the bill. Residential fees were last increased in Fiscal Year 2015 for single and multi-family residential units by $0.50 per unit as a result of a $.50 per unit contractual increase from our Residential Waste Service Contractor that was passed through.
At the July 27, 2018 Finance and Citywide Projects Committee meeting, the Committee recommended the pass through of the recycling fee of $3.52 plus the County CPI for a total of $3.62 on to the single family and multi-family residences. This represents a proposed increase of 8.7 and 9.7 percent increase to single family and multifamily residences respectfully.
The Sanitation Division has a contractual obligation with Progressive Waste Solutions, Inc. that provides residential waste service. The cost of this service to the City is currently $25.12. The difference between the costs to provide the service for single family units, $41.56 and the cost to the City, $25.12 is $16.44. This difference is used to fund litter control services, illegal dumping, pre/post storm related debris removal and administrative fees related to management of the contract and billings. The current cost for residential waste services to multi-family dwellings with eight units or less is $37.13. The difference between the cost to provide the service for multi-family dwellings, $37.13 and the cost to the City $25.12 is $12.01 which is also used to fund litter control services, illegal dumping, pre/post storm debris removal and administrative fees related to management of the contract and billings.
At the July 27, 2018 Finance and Citywide Projects Committee meeting, the Committee recommended capturing all the costs in addition to the pass through of the Miami-Dade recycling fee: the contract price to collect the residential waste and the City service fee subject to an annual CPI increase effective October 1, 2019.
The following chart illustrates the difference in current and proposed fees charged to residents for solid waste services:
The proposed single family residential rate will be $3.62 for recycling, $25.12 for the current rate paid to the waste contractor, and $16.44 for the City service fee which totals $45.18 per month or $542.16 annually.
The City of Coral Gables and the Village of Key Biscayne provide a similar level of service which involves collection of trash receptacles from within private property as does the City of Miami Beach. In comparison the City of Coral Gables charges an annual fee of $750 and the Village of Key Biscayne’s annual fee is $645 as compared to the City of Miami Beach proposed annual fee of $542.16. This increase keeps the City of Miami Beach fees below other municipalities providing backyard service as shown on the comparative annual fee chart below: