Staff recommends that the City Council conduct a public hearing and approve staff's recommended resolution adopting collection, disposal, and landfill fees effective July 1, 2023.
 

Section 21-229 of the Billings, Montana city Code (BMCC) requires that the City Council adopt the Solid Waste collection and disposal charges and the landfill fees annually by resolution. The existing solid waste rates and fees are not adequate for the operation and maintenance and capital investment necessary to continue providing service at the current level. The reccommended rate and fee adjustments include the following:

• $1.45 increase in residential collection fees that will include curbside cardboard recycling (subsidized by landfill fees);
• The option of a smaller 64 gallon container for $9.90 per month; 
• An increase of the charge for a second 96 gallon container to $4.50 and establishment of a $4.50 fee for a second green barrel container;
• Extras charged at $5 per item and on a call-in basis only;
• $15.00 increase in dropbox/roll-off fee;
• 11% increase in commercial collection fees;
• Addition of a dry run fee for roll-off services;
• 10.6% increase in landfill fees;
• Revision of FOG fee from a fee per 1,000 gallons to a per ton fee and only accept FOG originating within Yellowstone County; and
• Establish parameters for clean soil.

The attached memo summarizes council discussions regarding the residential collection program and provides additional context regarding residential collection options.  Two resolutions are also attached.  The first resolution (Option A) is based on staff's recommendation provided during the May 15, 2023 Council meeting.  The one change to that recommendation is that it now includes the ability for residential customers to call-in for scheduled pickup for extras for a fee.  The second resolution (Option B) is based on feedback received from Council at the May 15, 2023 work session and is the same basic program framework that exists today.   

A public hearing is required and if the resolution is approved, rates will be effective July 1, 2023.

City Council may:

• Approve the Option A Resolution as recommended by staff,
• Approve alternate Option B Resolution (no programmatic changes from the previous year) and give staff direction for FY25 program. This is the resolution presented for approval given the feedback during the May 15, 2023, work session.
• Approve a modified resolution based on either Option A or B. Modifications could include a defined subsidy from landfill for collection or eliminating the charge for the second green container.  

The proposed rate and fee adjustments will generate approximately $1,600,000 in collection revenues, $110,000 in roll-off revenues, and $660,000 in landfill revenues for a total increase to the solid waste fund of $2,370,000 for FY24.