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Agenda 07/09/2024 Item #16C3 (Set date, time, and place for a public hearing to determine the fees for curvsided trash collection services FY2025.)07/09/2024 EXECUTIVE SUMMARY Recommendation to adopt Resolutions to set the date, time, and place for an advertised public hearing where the Board will adopt special assessments to be collected on the non -ad valorem property tax bill for curbside solid waste collection and disposal services to set a not -to -exceed fee of $330.00 from FY2025 through FY2029 and approve the statutorily required notification to customers. OBJECTIVE: Set the date, time, and place for a public hearing to determine the fees for curbside trash collection services for Fiscal Year (FY) 2025. The Board of County Commissioners (Board) is being asked to approve a statutorily required notification of the hearing that must be mailed, using first class postage, to each property owner. CONSIDERATIONS: Ordinance 2005-54, as amended, established a mandatory program for the collection and disposal of solid waste generated by single and multi -family residential units and commercial entities in the unincorporated areas of Collier County. On January 25, 2005, the Board of Collier County Commissioners entered an hiterlocal Agreement with the City of Marco Island to provide trash collection services as provided in District 1. On October 11, 2005, the Board of Collier County Commissioners entered an Interlocal Agreement with the City of Everglades City to provide trash collection services as provided in Service District No. 1. Residents in those areas are included in the non -ad valorem assessment for District No. 1. Ordinance 2005-54 provides for the levy and collection of annual special assessments on the non -ad valorem section of the property tax bill for residential solid waste collection and disposal services. Collection of the annual fees on the property tax bill, mailed to property owners of record in November each year, is the most cost-effective collection method available to the Board. To use the property tax bill as the collection vehicle, Section 197.3632, Florida Statutes, requires the Board to follow the specific process outlined below: • Adopt an intent resolution which sets the date, time, and place of an advertised public hearing wherein affected property owners can comment on the fees and the process. • Provide notification of the advertised public hearing by first class mail to each affected property owner. Conduct the advertised public hearing at the pre -determined date, time, and place. Adopt the fee or fees to be assessed on the tax bill; and, Adopt a special assessment roll that identifies the rates and affected properties. This roll will be merged with the property tax roll for collection of the assessment at the time property taxes are collected. The attached resolutions and first-class notifications (today's requested actions) identify a proposed or recommended fee for the FY2025 budget year of $255.52, and a not -to -exceed amount of $330.00 for FY2025 through FY2029. This fee is supported by a 2025 Solid Waste Rate Study that was completed by Raftelis Financial Consultants, Inc. who evaluated the cost of service for waste collection and disposal services and provided rate recommendations to recover such costs. By establishing a not -to -exceed amount over the next five years, the Board can avoid the cost of recurring first-class notifications. However, if there is a technological, regulatory, or unusual event that would require the Board to establish a rate above the not -to -exceed amount in Fiscal Years 2025 through 2029 inclusive, a new first-class notification would be required. The cost of the first-class notification is approximately $130,000. Establishing a not -to -exceed amount of $330.00 will provide the Board a certain amount of flexibility to adjust for contractually required automatic CPI price adjustments for collection service providers, possible amendment of those contracts which expire at the end of FY2027, incorporation of the tipping fees recommended in the Fiscal Year 2025 Solid Waste Rate Study, and to address any other unexpected cost increases or capital projects during the five year period. Shown below are the annual fees for solid waste including weekly trash, recyclable, yard waste, bulk items collection for the current year, along with the proposed fees for FY2025. Current Proposed I Packet Pg. 622 07/09/2024 FY2024 FY2025 FY2k2fi* EY1027* �U* �2�* Service District 1 $249.29 $255.52 *To be set by the Board annually, not to exceed. Service District 11 $249.29 $255.52 $330 without first class notification. The unincorporated area of the County is divided into two distinct Municipal Service Benefit Units (MSBU) for solid waste collection and disposal services. The MSBU's are identified as Service District I and Service District 11. Both service districts are part of an Integrated Solid Waste Management System for Collier County. Each MSBU requires an individual resolution and notification. The services provided by this assessment include twice a week unlimited trash collection and once a week recycling, yard waste, and bulky item collection. Services are provided Monday through Saturday with only 3 non - collection holidays per year. There will be over 30 million possible collection service opportunities throughout the course of FY2025. The service is expected to be provided to 139,800 units in District I and 11, 100 units in District 11, and to collect a combined 163,000 tons of trash and yard waste and 37,700 tons of recycling in FY2025. FISCAL IMPACT: For FY2025 budgeted collection amounts are: $33,496,600 for District I and $2,592,200 for District 11. Collection of annual fees is approximately 100 percent each year. The fiscal impact of the recommended action is associated with the production and mailing of the first-class notices and the legal advertising for the public hearing: Estimated cost of direct mailing $ 28,000.00 (Approximately 138,000 notices) Estimated cost of postage $ 102,000.00 (Approximately 138,000 notices) Legal advertising $ 3,000.00 Total Funds are available in the Mandatory Trash Collection Fund (4073). Legal advertising costs will be reduced if using the Clerk's website is statutorily permitted to advertise. GROWTH MANAGEMENT IMPACT: There is no Growth Management impact associated with this item. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for approval. -SAA R-ECOMMENDATION: That the Board adopt Resolutions to set the date, time, and place for an advertised public hearing where the Board will adopt special assessments to be collected on the non -ad valorem property tax bill for curbside solid waste collection and disposal services to set a not -to -exceed fee of $330.00 from FY2025 through FY2029 and approve the statutorily required notification to customers. Prepared By: Bart Zautcke, C.P.A., Manager - Solid Waste Operations, Finance Solid & Hazardous Waste Management Division ATTACHMENT(S) 1. SW Intent Letter Resolution 2024 - District I (PDF) 2. SW Intent Letter Resolution 2024 - District 11 (PDF) 3. First Class Legal Notice District I (PDF) 4. First Class Legal Notice District 11 (PDF) 5. 2024 FAQ to Residents with Map (PDF) 6. FY2025 Solid Waste Rate Study(PDF) Packet Pg. 623 07/09/2024 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.3 Doe ID: 29108 Item Summary: Recommendation to adopt Resolutions to set the date, time, and place for an advertised public hearing where the Board will adopt special assessments to be collected on the non -ad valorem property tax bill for curbside solid waste collection and disposal services to set a not -to -exceed fee of $330.00 from FY2025 through FY2029 and approve the statutorily required notification to customers. Meeting Date: 07/09/2024 Prepared by: Title: — Solid and Hazardous Waste Name: Bart Zautcke 06/10/2024 3:20 PM Submitted by: Title: — Solid and Hazardous Waste Name: Karl Hodgson 06/10/2024 3:20 PM Approved By: Review: Public Utilities Operations Support Joseph Bellone PUD Reviewer Public Utilities Department Vincent Dominach Level 1 Department Review Solid and Hazardous Waste Bart Zautcke PUD Reviewer Public Utilities Operations Support Heather Sweet PUD Reviewer Solid and Hazardous Waste Kari Hodgson PUD Reviewer County Attorney's Office Sally Ashkar Level 2 Attorney Review Office of Management and Budget Christopher Johnson OMB Reviewer Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Office of Management and Budget Blanca Aquino Luque OMB Reviewer Public Utilities Department George Yilmaz Level 2 Division Administrator Review County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review County Manager's Office Ed Finn Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Completed 06/12/2024 4:12 PM Completed 06/13/2024 10:32 AM Completed 06/14/2024 2:20 PM Completed 06/14/2024 2:39 PM Completed 06/14/2024 4:08 PM Completed 06/14/2024 4:14 PM Completed 06/18/2024 3:08 PM Completed 06/18/2024 3:11 PM Completed 06/18/2024 4:10 PM Completed 06/20/2024 4:16 PM Completed 06/21/2024 10:42 AM Completed 07/02/2024 5:24 PM 07/09/2024 9:00 AM I Packet Pg. 624 1 RESOLUTION NO. 2024 - A RESOLUTION FIXING THE DATE, TIME, AND PLACE FOR THE PUBLIC HEARING FOR APPROVING THE SPECIAL ASSESSMENT (NON - AD VALOREM ASSESSMENT) TO BE LEVIED AGAINST THE PROPERTIES WITHIN THE SOLID WASTE MUNICIPAL SERVICE BENEFIT UNIT, SERVICE DISTRICT NO. I FOR SOLID WASTE COLLECTION AND DISPOSAL SERVICES. WHEREAS, the Board of County Commissioners of Collier County Florida intends to finance the collection and disposal of solid waste through the levy of special assessments (non - ad valorem assessments) against residential units as defined in Collier County Ordinance No. 2005-54, as amended, that are benefited by the collection and disposal services, Said properties are located within the boundaries of Solid Waste Municipal Service Benefit Unit, Service District No. I as described in Collier County Ordinance No. 2005-54 as amended, and more particularly described herein; and WHEREAS, Section 197.3632, Florida Statutes, requires that a public hearing be held to adopt a non -ad valorem assessment roll for purposes of utilizing the uniform method collection. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE: This Resolution is adopted pursuant to the provisions of Section 197.3632, Florida Statues, Ordinance No. 2005-54, as amended, and other applicable provisions of law. SECTION TWO: It is hereby found and determined that a special assessment for the collection and disposal services for the Solid Waste Municipal Service Benefit Unit, Service District No. I is necessary for funding the required payments for said collection and disposal for a period of five (5) years beginning fiscal year 2025 and ending fiscal year 2029. SECTION THREE: A public hearing before the Board of County Commissioners on the preliminary assessment roll (non -ad valorem assessment roll) of the estimated costs to fund the collection and disposal of solid waste in Solid Waste Municipal Service Benefit Unit, Service District No. I for a period of five (5) years beginning fiscal year 2025 and ending with fiscal year 2029 between the County and each property owner of lands within the Solid Waste Municipal Service Benefit Unit, Service District No. I will be held on Sel2tember 10, 2024, be2innin2 at 9:00 a.m., in the Board of County Commissioners' Boardroom, Third Floor, W. Harmon Turner Building, 3299 East Tamiami Trail, Naples, Florida 34112, at which time the Board of County Commissioners will hear objections from the owners of the properties within the Solid Waste Municipal Service Benefit Unit, Service District No. I or other persons interested therein, to the adoption of the preliminary assessment roll (non -ad valorem assessment roll). The Clerk shall keep a record in which shall be inscribed, at the request of any person, firm, or corporation having or claiming to have any interest in any lot or parcel of land within said Solid Waste Municipal Service Benefit Unit, the name and post office address of such person, firm, or corporation, together with the brief description or designation of such lot or parcel, The Clerk shall cause the notice of such public hearing to be published one time in the Naples Daily News, a newspaper published in Collier County Packet Pg. 625 and circulating in the Solid Waste Municipal Service Benefit Unit, not less than twenty (20) days prior to said date of the hearing. Notice of such public hearing to consider the adoption of the preliminary assessment roll (non -ad valorem assessment roll) shall also be mailed first class to all property owners in Solid Waste Municipal Service Benefit Unit, Service District No. I as listed on the preliminary roll (non -ad valorem assessment roll) at the address provided for on said roll. SECTION FOUR: Notice of such hearing shall be in substantially the following form: NOTICE Notice is hereby given that the Board of County Commissioners of Collier County, Florida, will meet on September 10. 2024. beginning at 9:00 a.m., in the Board of County Commissioners' Boardroom, Third Floor, W. Harmon Turner Building, 3299 East Tamiami Trail, Naples, Florida 34112, for the purpose of hearing objections, if any, by all interested persons to the adoption of the preliminary assessment roll (non -ad valorem assessment roll) allocating the assessable costs for collection and disposal of solid waste within Solid Waste Municipal Service Benefit Unit, Service District No. I which comprises and includes those lands described as follows: Beginning at the intersection of the North line of Section 6, Township 48 South, Range 25 East also known as the Lee -Collier County line and the eastern shoreline of the Gulf of Mexico; thence easterly along said Lee -Collier County line to the northeast comer of Section 12, Township 48 South, Range 26 East; thence north along the east line of Range 26 East, Township 48 South to the northwest comer of Section 6, Township 48 South, Range 27 East, thence east along the north line of Sections 6, 5, 4, 3, 2 and I of Township 47 South, Range 27 East to the northwest comer of Section 1, Township 48 South, Range 27 East; thence north along the range line of Ranges 27 and 28 East to the northwest comer of Section 30, Township 47 South, Range 28 East, also known as the center line of Immokalee Road (CR 846); thence east along the north section lines of Sections 30, 29, 28, 27, 26 and 25 of Township 47 South, Range 28 East to the northeast comer of Section 25, Township 47 South, Range 28 East; thence south along the range line for Ranges 28 and 29 East to the northeast comer of Township 49 South and Range 28 East; thence east along the township line for Townships 48 and 49 South to the northeast comer of Township 49 South and Range 30 East; thence south along the range line for Ranges 30 and 31 East to the northeast comer of Township 52 South and Range 30 East; thence east along the township line for Townships 51 and 52 South to the northeast comer of Township 52 South and Range 31 East; thence south along the range line for Ranges 31 and 32 East to the northeast comer of Township 53 South and Range 31 East; thence east along the township line of Townships 52 and 53 South to the northeast comer of Township 53 South and Range 34 East, also being known as the Collier -Miami -Dade County line; thence south along said county line to the southeast comer of Section 36, Township 53 South, Range 34 East, also being known as the Collier -Monroe County line; thence west along said county line to the eastern shoreline of the Gulf of Mexico; thence westerly and northerly along the waters of the Gulf of Mexico to the Lee -Collier county line being the north line of Section 6, Township 48 South, Range 25 East and being the Point of Beginning. Less and except all the lands located within the corporate limits of the City of Naples. Also, less and except all coastal barrier islands, as defined by Section 161.54(2), Florida Statutes, that are not accessible by bridges or causeways. I Packet7P7g-6267 On January 25, 2005, the Board of Collier County Commissioners entered into an Interlocal Agreement with the City of Marco Island to provide trash collection services as provided in District 1. On October 11, 2005, the Board of Collier County Commissioners entered into an Interlocal Agreement with the City of Everglades City to provide trash collection services as provided in Service District No. 1. A copy of the preliminary assessment roll (non -ad valorem assessment roll) for each lot or parcel of land to be assessed is on file at the Clerk to the Board's Office, County Government Center, W. Harmon Turner Building, Fourth Floor, 3299 East Tamiarni Trail, Naples, Florida 34112, and in the offices of the Collier County Utility Billing and Customer Service Department, 4420 Mercantile Avenue, Naples, Florida 34104, and is open to the inspection of the public. All affected property owners have a right to appear and be heard at the public hearing and to file written objections to the adoption of a resolution approving the preliminary assessment roll (non -ad valorem assessment roll) with the Board within 20 days of this notice based upon the grounds that it contains items which cannot be properly assessed against property, that the computation of the special assessment is incorrect, or there is a default or defect in the passage or character of the resolution, or the preliminary assessment (non -ad valorem assessment) is void or voidable in whole or in part, or that it exceeds the power of the Board. At the completion of the hearing, the Board shall either annul or sustain or modify in whole or in part the preliminary assessment (non -ad valorem assessment) as indicated on such roll, either by confirming the preliminary assessment (non -ad valorem assessment) against any or all lots or parcels described therein or by canceling, increasing or reducing the same, according to the special benefits which the Board decides each such lot or parcel has received or will receive from the collection and disposal of solid waste. The assessment so made shall be final and conclusive as to each lot or parcel assessed unless proper steps are taken within twenty (20) days with a court of competent jurisdiction to secure relief. The Board will levy a special assessment (non -ad valorem assessment) for collection and disposal of solid waste based on the methodology of the number of equivalent residential units located on the property. In accordance with Florida Statute 197.3632, the total assessment for collection and disposal of solid waste shall not exceed $330.00 per equivalent residential unit per year for the next five (5) years commencing fiscal year 2025 and ending fiscal year 2029. This special assessment (non -ad valorem assessment) will be collected by the Collier County Tax Collector on the owner's non -ad valorem tax bill pursuant to Section 197.3632, Florida Statutes. Failure to pay the special assessment (non -ad valorem assessment) and your property taxes will cause a tax certificate to be sold against the property, which may result in a loss of title to the property. Any person who decides to appeal a decision of the Board will need a record of the proceedings pertaining thereto and, therefore, may need to ensure that a verbatim record of the proceedings is made. The record shall include the testimony and evidence upon which the appeal is to be based. SECTION FIVE: The Clerk is hereby ordered and directed to spread this Resolution in full among the minutes of this meeting for permanent record in his office. Packet Pg. 627 SECTION SIX: This Resolution shall become effective immediately upon its passage. This Resolution adopted this ... ....... _ .. ............ . ................ ...... . ... ... .. day of 2024, after motion, second and majority vote. ATTEST: CRYSTAL K. KINZEL, Clerk of the Circuit Court & Comptroller Approved as to form and legality: Sally A. Ashkar Assistant County Attorney q1h CS I '�pq BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA go Chris Hall, Chairman Packet Pg. 628 RESOLUTION NO. 2024 - A RESOLUTION FIXING THE DATE, TIME, AND PLACE FOR THE PUBLIC HEARING FOR APPROVING THE SPECIAL ASSESSMENT (NON - AD VALOREM ASSESSMENT) TO BE LEVIED AGAINST THE PROPERTIES WITHIN THE SOLID WASTE MUNICIPAL SERVICE BENEFIT UNIT, SERVICE DISTRICT NO. 11 FOR SOLID WASTE COLLECTION AND DISPOSAL SERVICES. WHEREAS, the Board of County Commissioners of Collier County Florida intends to finance the collection and disposal of solid waste through the levy of special assessments (non - ad valorem assessments) against residential units as defined in Collier County Ordinance No. 2005-54, as amended, that are benefited by the collection and disposal services. Said properties are located within the boundaries of Solid Waste Municipal Service Benefit Unit, Service District No. 11 as described in Collier County Ordinance No. 2005-54 as amended, and more particularly described herein; and WHEREAS, Section 197.3632, Florida Statutes, requires that a public hearing be held to adopt a non -ad valorem assessment roll for purposes of utilizing the uniform method collection. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE: This Resolution is adopted pursuant to the provisions of Section 197.3632, Florida Statues, Ordinance No. 2005-54, as amended, and other applicable provisions of law. SECTION TWO: It is hereby found and determined that a special assessment for the collection and disposal services for the Solid Waste Municipal Service Benefit Unit, Service District No. 11 is necessary for funding the required payments for said collection and disposal for a period of five (5) years beginning fiscal year 2025 and ending fiscal year 2029. SECTION THREE: A public hearing before the Board of County Commissioners on the preliminary assessment roll (non -ad valorem assessment roll) of the estimated costs to fund the collection and disposal of solid waste in Solid Waste Municipal Service Benefit Unit, Service District No. 11 for a period of five (5) years beginning fiscal year 2025 and ending with fiscal year 2029 between the County and each property owner of lands within the Solid Waste Municipal Service Benefit Unit, Service District No. 11 will be held on Septembe 10, 2024, beeinning at 9:00 a.m.. in the Board of County Commissioners' Boardroom, Third Floor, W. Harmon Turner Building, 3299 East Tamiami Trail, Naples, Florida, 34112, at which time the Board of County Commissioners will hear objections from the owners of the properties within the Solid Waste Municipal Service Benefit Unit, Service District No. 11 or other persons interested therein, to the adoption of the preliminary assessment roll (non -ad valorem assessment roll). The Clerk shall keep a record in which shall be inscribed, at the request of any person, firm, or corporation having or claiming to have any interest in any lot or parcel of land within said Solid Waste Municipal Service Benefit Unit, the name and post office address of such person, firm, or corporation, together with the brief description or designation of such lot or parcel. The Clerk shall cause the notice of such public hearing to be published one time in the Naples Daily News, a newspaper published in Collier County and circulating in the Solid Waste Municipal Service Benefit Unit, not less than twenty (20) days prior to said date of the hearing. Notice of such public hearing to I Packet Pg. 629 consider the adoption of the preliminary assessment roll (non -ad valorem assessment roll) shall also be mailed first class to all property owners in Solid Waste Municipal Service Benefit Unit, Service District No. 11 as listed on the preliminary roll (non -ad valorem assessment roll) at the address provided for on said roll. SECTION FOUR: Notice of such hearing shall be in substantially the following fonri: NOTICE Notice is hereby given that the Board of County Commissioners of Collier County, Florida, will meet on September 10. 2024. beginninizat 9:00 a,m., in the Board of County Commissioners' Boardroom, Third Floor, W. Harmon Turner Building, 3299 East Tamiami Trail, Naples, Florida, 34112, for the purpose of hearing objections, if any, by all interested persons to the adoption of the preliminary assessment roll (non -ad valorem assessment roll) allocating the assessable costs for collection and disposal of solid waste within Solid Waste Municipal Service Benefit Unit, Service District No. II which comprises and includes those lands described as follows: Beginning at the northwest comer of Township 47 South, Range 27 East, Collier County, Florida; thence east along the Collier -Lee county line also the township line to the northeast comer of Township 47 South, Range 27 East; thence north along the Collier -Lee county line also the range line to the northwest comer of Township 46 South, Range 28 East; thence east along the Collier -Hendry county line also the township line for Townships 45 and 46 South to the northeast comer of Township 46 South, Range 30 East; thence south along the Collier -Hendry county line also the range line of Ranges 30 and 31 East to the southeast comer of Township 48 South, Range 30 East; thence west along the township line for Townships 48 and 49 South to the southwest comer of Township 48 South, Range 29 East; thence north along range line for Ranges 28 and 29 East to the southwest comer of Section 19, Township 47 South, Range 29 East; also being known as the center line of Immokalee Road (CR 846); thence west along the south line of Sections 24, 23, 22, 21, 20 and 19 of Township 47 South, Range 28 East to the southeast comer of Section 24, Township 47 South, Range 27 East; thence south along the range line for Ranges 27 and 28 East to the southeast comer of Township 47 South, Range 27 East; thence west along the township line for Townships 47 and 48 South to the southwest comer of Township 47 South and Range 27 East; thence north along the range lines for Ranges 26 and 27 East to the northwest comer of Township 47 South, Range 27 East, being the Point of Beginning. A copy of the preliminary assessment roll (non -ad valorem assessment roll) for each lot or parcel of land to be assessed is on file at the Clerk to the Board's Office, County Government Center, W. Harmon Turner Building, Fourth Floor, 3299 East Tamiami Trail, Naples, Florida, 34112, and in the offices of the Collier County Utility Billing and Customer Service Department, 4420 Mercantile Avenue, Naples, Florida, 34104 and is open to the inspection of the public. All affected property owners have a right to appear and be heard at the public hearing and to file written objections to the adoption of a resolution approving the preliminary assessment roll (non -ad valorem assessment roll) with the Board within 20 days of this notice based upon the grounds that it contains items which cannot be properly assessed against property, that the computation of the special assessment is incorrect, or there is a default or defect in the passage or character of the resolution, or the preliminary assessment (non -ad valorem assessment) is void or voidable in whole or in part, or that it exceeds the power of the Board. At the completion of the hearing, the Board shall either annul or sustain or modify in whole or in part the preliminary assessment (non -ad valorem assessment) as indicated on such roll, either by confirming the I Packet Pg. 630 1 preliminary assessment (non -ad valorem assessment) against any or all lots or parcels described therein or by canceling, increasing or reducing the same, according to the special benefits which the Board decides each such lot or parcel has received or will receive from the collection and disposal of solid waste. The assessment so made shall be final and conclusive as to each lot or parcel assessed unless proper steps are taken within twenty (20) days with a court of competent jurisdiction to secure relief. The Board will levy a special assessment (non -ad valorem assessment) for collection and disposal of solid waste based on the methodology of the number of equivalent residential units located on the property. In accordance with Florida Statute 197.3632, the total assessment for collection and disposal of solid waste shall not exceed $330.00 per equivalent residential unit per year for the next five (5) years commencing fiscal year 2025 and ending fiscal year 2029. This special assessment (non -ad valorem assessment) will be collected by the Collier County Tax Collector on the owner's non -ad valorem tax bill pursuant to Section 197.3632, Florida Statutes. Failure to pay the special assessment (non -ad valorem assessment) and your property taxes will cause a tax certificate to be sold against the property, which may result in a loss of title to the property. Any person who decides to appeal a decision of the Board will need a record of the proceedings pertaining thereto and, therefore, may need to ensure that a verbatim record of the proceedings is made. The record shall include the testimony and evidence upon which the appeal is to be based. SECTION FIVE: The Clerk is hereby ordered and directed to spread this Resolution in full among the minutes of this meeting for permanent record in his office. SECTION SIX: This Resolution shall become effective immediately upon its passage. This Resolution adopted this majority vote. ATTEST: CRYSTAL K. KINZEL, Clerk of the Circuit Court & Comptroller Approved as to form and legality: Sally A. Ashkar Assistant County Attorney clfA, '0�q�q�y day of ---2024, after motion, second and BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA am Chris Hall, Chairman I Packet Pg. 631 1 BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA SOLID WASTE MUNICIPAL SERVICE BENEFIT UNIT SERVICE DISTRICT NO. I SPECIAL NON -AD VALOREM ASSESSMENT COLLIER COUNTY, FLORIDA 'THIS IS NOT A BILL — DO NOT PAY*** Property Owner and Mailing Address Folio No. Property Description: Assessable Units: Preliminary Assessment Amount: Dear Property Owner: Notice is hereby given that the Board of County Commissioners of Collier County, Florida, will meet on September 10, 2024, at 9:00 a.m. in the Board of County Commissioners' Boardroom, Third Floor, W. Harmon Turner Building, 3299 East Tamiami Trail, Naples, Florida 34112, for the purpose of hearing objections, if any, by all interested persons to the adoption of the preliminary assessment roll (non -ad valorem roll) allocating the assessable costs for collection and disposal of solid waste within Solid Waste Municipal Service Benefit Unit, Service District No. 1, which comprises and includes those lands described as follows: Beginning at the intersection of the North line of Section 6, Township 48 South, Range 25 East also known as the Lee -Collier County line and the eastern shoreline of the Gulf of Mexico; thence easterly along said Lee -Collier County line to the northeast corner of Section 12, Township 48 South, Range 26 East; thence north along the east line of Range 26 East, Township 48 South to the northwest corner of Section 6, Township 48 South, Range 27 East, thence east along the north line of Sections 6, 5, 4, 3, 2 and 1 of Township 47 South, Range 27 East to the northwest corner of Section 1, Township 48 South, Range 27 East; thence north along the range line of Ranges 27 and 28 East to the northwest corner of Section 30, Township 47 South, Range 28 East, also known as the center line of Immokalee Road (CR 846); thence east along the north section lines of Sections 30, 29, 28, 27, 26 and 25 of Township 47 South, Range 28 East to the northeast corner of Section 25, Township 47 South, Range 28 East; thence south along the range line for Ranges 28 and 29 East to the northeast corner of Township 49 South and Range 28 East; thence east along the township line for Townships 48 and 49 South to the I Packet Pg. 632 1 northeast corner of Township 49 South and Range 30 East; thence south along the range line for Ranges 30 and 31 East to the northeast corner of Township 52 South and Range 30 East; thence east along the township line for Townships 51 and 52 South to the northeast corner of Township 52 South and Range 31 East; thence south along the range line for Ranges 31 and 32 East to the northeast corner of Township 53 South and Range 31 East; thence east along the township line of Townships 52 and 53 South to the northeast corner of Township 53 South and Range 34 East, also being known as the Collier -Miami -Dade County line; thence south along said county line to the southeast corner of Section 36, Township 53 South, Range 34 East, also being known as the Collier -Monroe County line; thence west along said county line to the eastern shoreline of the Gulf of Mexico; thence westerly and northerly along the waters of the Gulf of Mexico to the Lee -Collier county line being the north line of Section 6, Township 48 South, Range 25 East and being the Point of Beginning. Less and except all the lands located within the corporate limits of the City of Naples. Also, less and except all coastal barrier islands, as defined by Section 161.54(2), Florida Statutes, that are not accessible by bridges or causeways. On January 25, 2005, the Board of Collier County Commissioners entered into an Interlocal Agreement with the City of Marco Island to provide trash collection services as provided in District 1. On October 11, 2005, the Board of Collier County Commissioners entered into an interlocal agreement with the City of Everglades City to provide trash collection services as provided in Service District No. 1. A copy of the preliminary assessment roll (non -ad valorem roll) for each lot or parcel of land is on file at the Clerk to the Board's Office, County Government Center, W. Harmon Turner Building, Fourth Floor, 3299 East Tamiami Trail, Naples, Florida 34112; and in the offices of the Collier County Utility Billing and Customer Service Department, 4420 Mercantile Avenue, Naples, Florida 34104, and is open to the inspection of the public. For fiscal year 2025, the County is budgeted to collect $33,496,600 in non -ad valorem roll assessments in Solid Waste Municipal Service Benefit Unit, Service District No. 1. All affected property owners have a right to appear and be heard at the public hearing and to file written objections to the adoption of a resolution approving the preliminary assessment roll (non -ad valorem roll) with the Board within 20 days of this notice based upon the grounds that it contains items which cannot be properly assessed against property, that the computation of the special assessment is incorrect, or there is a default or defect in the passage or character of the resolution, or the preliminary assessment (non -ad valorem assessment) is void or voidable in whole or part, or that it exceeds the power of the Board. At the completion of the hearing, the Board shall either annul or sustain or modify in whole or in part the preliminary assessment (non - ad valorem assessment) as indicated on such roll, either by confirming the preliminary assessment (non -ad valorem assessment) against any or all lots or parcels described therein or by canceling, increasing, or reducing the same, according to the special benefits which the Board decides each such lot or parcel has received or will receive from the collection and disposal of solid waste. The assessment so made shall be final and conclusive as to each lot or parcel assessed unless proper steps are taken within 20 days with a court of competent jurisdiction to secure relief. The Board will levy a special assessment (non -ad valorem assessment) for collection and disposal of solid waste based on the methodology of the number of equivalent residential units located on the property. In accordance with Florida Statute 197.3632, the total assessment for collection and disposal of solid waste shall not exceed $330.00 per equivalent residential unit per year, for the next five years commencing fiscal year 2025 and ending fiscal year 2029. This special assessment (non -ad valorem assessment) will be collected by the Collier County Tax Collector on the owner's ad valorem tax bill pursuant to Section 197.3632, Florida Statutes. Failure to pay the special assessment (non -ad valorem assessment) and your property taxes will cause a tax certificate to be sold against the property, which may result in a loss of title to the property. I Packet Pg. 633 1 Any person who decides to appeal a decision of the Board will need a record of the proceedings pertaining thereto and, therefore, may need to ensure that a verbatim record of the proceedings is made. The record shall include the testimony and evidence upon which the appeal is to be based. If you are a person with disability who needs any accommodation in order to participate in this proceeding, you are entitled, at no cost to you, to the provision of certain assistance. Please contact the Collier County Facilities Management Division, located at 3335 Tamiami Trail East, Building W, Naples, Florida 34112, (239) 252-8380. Assisted listening services for the hearing impaired are available in the County Commissioners' Office. If you have any questions regarding the preliminary assessment roll, please contact Utility Billing and Customer Service at (239) 252-2380. BOARD OF COUNTY COM SSIONERSOF COLLIER COUNTY, FLORIDA CHRIS HALL, CHAIRMAN CRYSTAL K. KINZEL, CLERK By: Deputy Clerk I Packet Pg. 634 1 BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA SOLID WASTE MUNICIPAL SERVICE BENEFIT UNIT SERVICE DISTRICT NO. 11 SPECIAL NON -AD VALOREM ASSESSMENT COLLIER COUNTY, FLORIDA ***THIS IS NOT A BILL — DO NOT PAY*** Property Owner and Mailing Address Folio No. Property Description: Assessable Units: Preliminary Assessment Amount: Dear Property Owner: Notice is hereby given that the Board of County Commissioners of Collier County, Florida, will meet on September 10, 2024, at 9:00 a.m., in the Board of County Commissioners' Boardroom, Third Floor, W. Harmon Turner Building, 3299 East Tamiami Trail, Naples, Florida 34112, for the purpose of hearing objections, if any, by all interested persons to the adoption of the preliminary assessment roll (non- ad valorem roll) allocating the assessable costs for collection and disposal of solid waste within Solid Waste Municipal Service Benefit Unit, Service District No. 11 which comprises and includes those lands described as follows: Beginning at the northwest corner of Township 47 South, Range 27 East, Collier County, Florida; thence east along the Collier -Lee county line also the township line to the northeast corner of Township 47 South, Range 27 East; thence north along the Collier -Lee county line also the range line to the northwest corner of Township 46 South, Range 28 East; thence east along the Collier -Hendry county line also the township line for Townships 45 and 46 South to the northeast corner of Township 46 South, Range 30 East; thence south along the Collier -Hendry county line also the range line of Ranges 30 and 31 East to the southeast corner of Township 48 South, Range 30 East; thence west along the township line for Townships 48 and 49 South to the southwest corner of Township 48 South, Range 29 East; thence north along range line for Ranges 28 and 29 East to the southwest corner of Section 19, Township 47 South, Range 29 East; also being known as the center line of Immokalee Road (CR 846); thence west along the south line of Sections 24, 23, 22, 21, 20 and 19 of Township 47 South, Range 28 East to the southeast corner of Section 24, Township 47 South, Range 27 East; thence south along I Packet Pg. 635 1 the range line for Ranges 27 and 28 East to the southeast corner of Township 47 South, Range 27 East; thence west along the township line for Townships 47 and 48 South to the southwest corner of Township 47 South and Range 27 East; thence north along the range lines for Ranges 26 and 27 East to the northwest corner of Township 47 South, Range 27 East, being the Point of Beginning. A copy of the preliminary assessment roll (non -ad valorem roll) for each lot or parcel of land is on file at the Clerk to the Board's Office, County Government Center, W. Harmon Turner Building, Fourth Floor, 3299 East Tamiami Trail, Naples, Florida 34112; and in the offices of the Collier County Utility Billing and Customer Service Department, 4420 Mercantile Avenue, Naples, Florida 34104, and is open to the public. For fiscal year 2025, the County is budgeted to collect $2,592,200 in non -ad valorem roll assessments in Solid Waste Municipal Service Benefit Unit, Service District No. 11. All affected property owners have a right to appear and be heard at the public hearing and to file written objections to the adoption of a resolution approving the preliminary assessment roll (non -ad valorem roll) with the Board within 20 days of this notice based upon the grounds that it contains items which cannot be properly assessed against property, that the computation of the special assessment is incorrect, or there is a default or defect in the passage or character of the resolution, or the preliminary assessment (non -ad valorem assessment) is void or voidable in whole or part, or that it exceeds the power of the Board. At the completion of the hearing, the Board shall either annul or sustain or modify in whole or in part the preliminary assessment (non - ad valorem assessment) as indicated on such roll, either by confirming the preliminary assessment (non -ad valorem assessment) against any or all lots or parcels described therein or by canceling, increasing, or reducing the same, according to the special benefits which the Board decides each such lot or parcel has received or will receive from the collection and disposal of solid waste. The assessment so made shall be final and conclusive as to each lot or parcel assessed unless proper steps are taken within 20 days with a court of competent jurisdiction to secure relief. The Board will levy a special assessment (non -ad valorem assessment) for collection and disposal of solid waste based on the methodology of the number of equivalent residential units located on the property. In accordance with Florida Statute 197.3632, the total assessment for collection and disposal of solid waste shall not exceed $330.00 per equivalent residential unit per year, for the next five years commencing fiscal year 2025 and ending fiscal year 2029. This special assessment (non -ad valorem assessment) will be collected by the Collier County Tax Collector on the owner's ad valorem tax bill pursuant to Section 197.3632, Florida Statutes. Failure to pay the special assessment (non -ad valorem assessment) and your property taxes will cause a tax certificate to be sold against the property, which may result in a loss of title to the property. Any person who decides to appeal a decision of the Board will need a record of the proceedings pertaining thereto and, therefore, may need to ensure that a verbatim record of the proceedings is made. The record shall include the testimony and evidence upon which the appeal is to be based. If you are a person with disability who needs any accommodation in order to participate in this proceeding, you are entitled, at no cost to you, to the provision of certain assistance. Please contact the Collier County Facilities Management Division, located at 3335 Tamiami Trail East, Building W, Naples, Florida 34112, (239) 252-8380. Assisted listening services for the hearing impaired are available in the County Commissioners' Office. I Packet Pg. 636 1 If you have any questions regarding the preliminary assessment roll, please contact Utility Billing and Customer Service at (239) 252-2380. BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA CHRIS HALL, CHAIRMAN CRYSTAL K. KINZEL, CLERK By: Deputy Clerk I Packet Pg. 637 1 I t.__ Collier County Public Utilities Solid Waste Mandatory Collection and Disposal Non -Ad Valorem Assessment FAQs Is this a bill/invoice? No — this is not a bill or an invoice. Why am I receiving this? This notice is to inform you that at its regularly scheduled meeting on September 10, 2024, at 9:00 a.m., the Board of County Commissioners will consider the adoption of a resolution placing the annual Solid Waste Mandatory Collection and Disposal Assessment on the non -ad valorem portion of your property tax bill. State Statute 197.3632 requires Collier County to advertise the public hearing for the resolution adoption and notify all affected properties by first-class mail. Has the residential assessment always been on my tax bill? This special assessment has appeared on the non -ad valorem portion of the tax bill since 1996. What is the annual residential assessment cost? The proposed Solid Waste Mandatory Collection and Disposal assessment annual rate is $255.52 per residential unit. An increase of $6.23 per residential unit from last year. Why does the notice reference a not -to -exceed amount? Florida Statute 197.3632 requires a not -to -exceed value to be established. The not -to -exceed value established for Collier County's Solid Waste Mandatory Collection and Disposal assessment through 2029 is $330.00 per residential unit. What services does this non -ad valorem provide? Your services include twice -a -week trash collection, once -a -week recycling collection, once -a -week bulky item collection, and once -a -week yard waste collection. Your curbside recycling collection program includes plastic bottles and containers shaped like a bottle, jar, jug or tub; metal food and beverage cans made of tin, aluminum, and steel; clear, green, and brown colored glass bottles and jars; paper, cardboard, cereal boxes, magazines, newspaper, milk cartons, and juice boxes. We encourage you to take advantage of both the curbside and drop-off recycling programs to help keep the cost of solid waste disposal low. What if I escrow my taxes? If you escrow your annual taxes, the non -ad valorem is included. 27 What happens if I don't pay the non -ad valorem? Failure to pay the non -ad valorem assessment will cause a tax certificate to be sold against the property and may result in loss of title to the property. WvPL d For further questions, please call our Customer Service at 239 252-2380 rum n* Public Utilities Department I Packet Pg. 638 1 F 16.0 3.e I �E �S �.h ---fL 1�z —fL 15z _f, 15z 15� —fL 1�z —fL- 15z 4L 15z -21 i mr or or or or or or or -v ir ir -v _;:L i:L _;;e L 1: L + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + 1++ IF + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + Marco L C' A�-r County Map Prepared by Collier County IT/GIS COLLIER COUNTY Everglades City x % 6L This map is a representation of compiled public information. It is believed to be an accurate and true depiction for the stated purpose, but Collier County and its employees make no guarantees, implied ol otherwise as to the accuracy of completeness. We therefore do not aGGe pt any responsibilities as to its use. This is not a survey nor is I to be used for design. SERVICE DISTRICTS Collier County, Florida MUSTRIGTI[WDISMICT11 Solid Waste Collections District I & 11 0 1.5 3 6 9 12 �Miles I Packet Pg. 639 1 A A ILL N Q N M Collier County Fiscal Year 2025 Solid Waste Rate Study February 27, 2024 -%C— RAFTELIS GoVi�-r County .0000%W00%, Packet Pg. 640 R RAFTELIS February 27, 2024 Ms. Kari A. Hodgson, P.E. Division Director Collier County — Solid and Hazardous Waste Management Division 3339 Tamiami Trail East Suite 302 Naples, FL 34112 Subject: Fiscal Year 2025 Solid Waste Rate Study and Financial Forecast Dear Ms. Hodgson: Raftelis Financial Consultants, Inc. (Raftelis) has completed the 2025 Solid Waste Rate Study on behalf of the Collier County Solid and Hazardous Waste Management Division (Division) of Collier County, Florida (County). We have presented the results of our analyses, assumptions, and recommendations in this report for your consideration. The focus of the Study was to develop a forecast of solid waste operations and the corresponding expenditures and funding needs (revenue requirements) to evaluate the sufficiency of the solid waste system (System) revenues. Additionally, Raftelis was tasked to evaluate the cost of service for waste collection and disposal services and provide rate recommendations to recover such costs. The accounting period beginning October 1 and ending September 30 (Fiscal Year) for Fiscal Years 2024 through 2034 represents the Study Period. However, the Division is currently in the process of developing a long-term integrated solid waste management plan and has contracts expiring within the Study Period (e.g., residential and commercial waste collection and disposal), which may affect the study. As a result, Fiscal Years 2024 through 2028 represent the Forecast Period for which rate adjustments have been identified. Our recommendation is that proposed tipping fees for Fiscal Years 2025 through 2027 be adopted while, as required by statute, all changes to the assessment be adopted annually. Recommended Rate Adjustments Description 2025 2026 2027 Tipping Fee Rate Revenue Adjustments [2] 2.5% 2.5% 2.5% Assessment Rate Adjustments [3] 2.5% TBD TBD [1] Assumes implementation of rate adjustments at the beginning of each respective Fiscal Year. Additional rate adjustments have been identified in future years. [2] Reflects estimated annual increases in revenues assuming the adoption of the recommended tipping fees as discussed later in this report. [3] Changes in non -ad valorem assessments require annual adoption in accordance with Florida Statute. The County's franchise collection agreement expires September 30, 2027. Future increases to the assessment will be reviewed annually and, where possible, based upon the terms of the eventual contract awarded for collection services. 341 N. Maitland Avenue, Suite 300 Maitland, FIL 32751 www.raftelis.com Packet Pg. 641 Ms. Kari A. Hodgson, P.E. Collier County February 27, 2024 Page 2 The following is a summary of the key Study findings: The principal drivers of the identified rate adjustments are related to increased capital funding requirements from rate revenues (referred to as pay -go capital funding), the continued need to fund the Debris Mission Reserve Fund, inflationary effects on operating expenses, and the need to maintain adequate cash reserves and compliance with the adopted budget policies. 0 In developing the recommended rates, the following criteria were used as guiding principles: o Rates should be sufficient to recover the costs of providing service, including operating and maintenance expenses, reserve policy requirements including those for hurricane debris removal, and capital funding requirements. o The rate structure should equitably recover costs among customer groups; those who benefit from the service pay for the service. o Rates should be comparable with those of other Florida integrated solid waste management systems while still meeting the individual needs of the County. A cost -of -service analysis was performed using Fiscal Year 2023 data, of which the general findings and strategy developed is recommended to be implemented and is discussed later in the report. Increases to the MSW tipping fees, among others, and a unification of residential and commercial tipping fees among MSW, biomass, and tires are recommended. Assuming implementation of the identified rate adjustments, the County's residential assessment for solid waste services is expected to remain below average compared to other surveyed solid waste entities. However, it should be noted that the County's franchise collection agreement expires September 301h, 2027. Significant changes to the contractual costs of collection will impact the non -ad valorem assessment. The financial forecast generally assumes a continuation of the existing contract terms with an allowance for inflation as delineated within the existing franchise collection contracts. A separate sensitivity analysis has been performed to identify the potential rate impacts of a range of potential collection costs based on recent market benchmarking and discussions with staff. The tipping fees are projected to remain above average compared to surveyed entities. However, several fees including C&D, commercial biomass, and commercial tire tipping fees are all recommended to be held constant over the next 3 fiscal years (2025 through 2027). Based on our analysis and the assumptions relied upon as delineated in this Study, the identified rate adjustments are expected to: i) ensure adequate funding for the projected funding requirements of the System, including capital reinvestment; and ii) meet the County's recommended financial targets and adopted budget guidance goals. Packet Pg. 642 Ms. Kari A. Hodgson, P.E. Collier County February 27, 2024 Page 3 Following this letter is a summary report documenting recent trends, principal assumptions, and findings for your consideration. As always, we appreciate the opportunity to be of service to the County and the fine cooperation and valuable assistance given to us by County staff in the completion of the Study. Sincerely, RAFTELIs RNANciAL CONSULTANTS, INC. Thierry A. Boveri, CGFM Senior Manager Trevor McCarthy, CGFM Senior Consultant Maurizzio Onorato ,4ssociate Consultant I Packet Pg. 643 1 COLLIER COUNTY, FLORIDA FISCAL YEAR 2025 SOLID WASTE RATE STUDY AND FINANCIAL FORECAST TABLE OF CONTENTS Title Page No Letter of Transmittal Tableof Contents ........................................................................................................................ i PRIMARY ASSUMPTIONS AND RECOMMENDATIONS General............................................................................................................................................................ I Forecastof Revenues ........................................................................................................................................ 2 Customer and Demand Forecast .................................................................................................................. 2 ProjectedRevenues ...................................................................................................................................... 2 Forecastof Expenditures ................................................................................................................................... 3 OperatingExpenses ..................................................................................................................................... 3 CapitalExpenditures .................................................................................................................................... 4 Debris Mission Reserve Fund ............................................................................................................................ 5 PrincipalFindings ............................................................................................................................................. 6 CashBalances .............................................................................................................................................. 7 Costof Service and Rate Design ........................................................................................................................ 8 RateComparison ........................................................................................................................................ 10 Collection Contract Sensitivity Analysis ........................................................................................................... 13 Areasof Concern/Focus .................................................................................................................................. 13 Conclusions and Recommendations ................................................................................................................. 15 0 (n LO CN E U Packet Pg. 644 COLLIER COUNTY, FLORIDA FISCAL YEAR 2025 SOLID WASTE RATE STUDY AND FINANCIAL FORECAST General Raftelis Financial Consultants, Inc. (Raftelis) has completed the 2025 Solid Waste Rate Study (Study) on behalf of the Collier County Solid and Hazardous Waste Management Division (Division) of Collier County, Florida (County). We have presented the results of our analyses, assumptions, and recommendations in this report for your consideration. The focus of the Study was to develop a forecast of solid waste operations and the corresponding expenditures and funding needs (revenue requirements) to evaluate the sufficiency of the solid waste system (System) revenues. Additionally, Raftelis was tasked to evaluate the cost of service for waste collection and disposal services and provide rate recommendations to recover such costs. The accounting period beginning October I and ending September 30 (Fiscal Year) for Fiscal Years 2024 through 2034 represents the Study Period. However, the Division is currently in the process of developing a long-term integrated solid waste management plan and has contracts expiring within the Study Period (e.g., residential and commercial waste collection and disposal), which may affect the study. As a result, Fiscal Years 2024 through 2028 represent the Forecast Period for which rate adjustments have been identified. Although rate adjustments are identified below, our recommendation is that proposed tipping fees for Fiscal Years 2025 through 2027 be adopted while, as required by statute, all changes to the assessment be adopted annually. The primary goals and objectives of the Study were to: Evaluate the sufficiency of System revenues derived from existing disposal and assessment rates and identify rate adjustments, if necessary, to fund the projected expenditures and funding requirements from rates. Develop a pay -go capital funding plan that would fully support the financing of the Division's capital improvement plan (CIP) during the Forecast Period. Maintain compliance with and meet or exceed financial policy requirements as delineated in the adopted Fiscal Year 2024 Budget Policies, including providing annual transfers to the Debris Mission Reserve Fund. Evaluate and make recommendations regarding adjustments in tipping fees based on the cost -of -service analysis as performed as part of this Study. Present scenarios of potential rate increases related to the residential non -ad valorem assessment upon the expiration of the Division's franchise collection agreements on September 30, 2027. The financial forecast was developed based on information provided by County staff including, but not limited to: i) detailed collection and disposal statistics to identify service area demands and trends; ii) the Fiscal Year 2024 capital improvement plan; iii) the Fiscal Year 2024 operating budget as adopted by the Board of County Commissioners (BOCC); iv) financial and operational results for Fiscal Year 2023; and v) other financial or statistical information. -1- I Packet Pg. 645 Forecast of Revenues The revenues for the System are principally generated from the rates for solid waste service, which include revenues from disposal tipping fees and the annual residential assessment for collection and disposal services. Such revenues account for approximately 94% of gross revenues over the Forecast Period, while the balance of gross revenues (6%) is generated from miscellaneous service charges, scrap sales, franchise fees, and interest income on investments. Since most of the System revenues are generated from tipping fees and the annual residential assessment, the forecast of revenues is primarily determined by projections of the estimated number of customers receiving service and their demands (i.e., waste disposed). CUSTOMER AND DEMAND FORECAST The forecast of solid waste service revenues relied upon a review of recent historical trends in solid waste customer account growth and tonnage statistics. The following table provides a summary of projected trends in solid waste customer billing statistics: Solid Waste System Billing Statistics "' Average Annual Waste Disposed Fiscal Year Residential Accounts [2] (Tons) 2024 143,927 530,850 2025 147,033 535,208 2026 149,970 541,840 2027 152,905 548,489 2028 155,867 555,193 Annual Growth 2.01% 1.13% [1] Based on historical data and population projections provided by the County. [2] Represents average annual residential accounts for District I and District 11. Based on discussions with County staff and County population estimates, it is assumed that the County may expect to experience average annual growth in customer accounts of approximately 2.0% per year for the Forecast Period. Waste generation from Fiscal Years 2024 through 2028 is expected to increase at a rate of approximately 1. 1% per year as not all waste types (e.g., construction and demolition debris, biomass, tires) are anticipated to increase at the same rate as residential customer growth. In Fiscal Year 2023, the County experienced higher C&D tonnage than recent trends, which is likely attributable to the effects of Hurricane Ian. The forecast assumes a return to levels more closely aligned with historical trends beginning Fiscal Year 2024. PROJECTED REVENUES The revenue forecast was based on: i) review of historical trends in revenues; ii) Fiscal Year 2024 operating budget; iii) year-to-date operating results for Fiscal Year 2024; iv) customer and demand forecast as previously discussed; v) assumed implementation of identified rate adjustments to fund the projected revenue requirements; and vi) discussions with County staff. The following table provides a summary of projected revenues at proposed rates over the Forecast Period. -2- I Packet Pg. 646 Rate Adjustment Assessment Fiscal Year Disposal [1 [2] 2024 N/A N/A 2025 2.5% 2.5% 2026 2.5% 2.5% 2027 2.5% 2.5% 2028 2.0% 2.5% CAGR[4] Disposal Rate Assessment Revenues Rate Revenues $32,401,335 33,553,261 34,984,268 36,475,402 37,823,739 3.94% $34,711,263 36,344,873 37,995,674 39,706,005 41,485,316 4.56% M Other Revenues[3] Total Revenues $4,240,831 $71,353,429 3,972,366 73,870,499 4,029,053 77,008,995 4,146,530 80,327,937 4,273,679 83,582,734 0.19% 4.03% [1] Based on estimated annual increases in rate revenues assuming implementation of the tipping fees discussed later in this report. [2] Projected rates do not incorporate the anticipated effects associated with the expiration of the existing collection contract on September 30, 2027. [3] Amounts shown include revenues not derived from user rates such as landfill gas to energy sales, commercial franchise fees, residential franchise fees, recycling revenues, and investment income. [4] Represents the compound annual growth rate of each category of revenues. Forecast of Expenditures The Forecast Period expenditures can be categorized into three primary groups: operation and maintenance (operating) expenses, capital funding, and transfers. Currently, operating expenses account for the majority or 92% of gross revenue requirements, while transfers to fund capital reinvestment account and debris mission reserve fund transfers account for the remaining 8%. OPERATING EXPENSES The forecast of operating expenses was developed based upon: i) a review of the recent trends in historical expenses; ii) the adopted Fiscal Year 2024 budget and subsequent amendments; iii) assumed growth rates / escalation factors of costs based on industry trends, projections of inflation by the Congressional Budget Office, and other resources; and iv) discussions with County staff. The following chart presents the forecast of operating expenses: Summary of Operating Expenses $80 $70 $60 20 $50 .2 $40 $30 $20 $10 $0 L L 2024 2025 2026 2027 2028 * Contract Disposal Expenses OContract Collection Expenses * All Other Operating Expenses 0 Personnel Services -3- I Packet Pg. 647 The principal operating expenses include contract collection services, contract disposal operations, and personnel, with contracted disposal and collection accounting for approximately 70% of total operating expenses. The contracts include the County's landfill operating agreement with Waste Management and collection agreements with Waste Management (District I) and Waste Pro (District II). As is common among these types of contracts, provisions allow for the annual indexing of rates charged to the County. Thus, 70% of the System's operating expenses are automatically indexed by inflation and not within the control of County staff. The forecast of contractual operating expenses has been escalated for the Forecast Period consistent with the index provisions prescribed in each contract and estimates thereof. Other operating expenses relied upon various escalation factors ranging from approximately 2.0% to 5.0% depending on the assumed costs being escalated. Furthermore, budgeted departmental capital outlays were reclassified as a capital expenditure included in the CIP. Overall, operating expenses are projected to increase by an average annual rate of approximately 3.9% per year. It should be noted that the projection of operating expenses assumes a continuation of the existing franchise collection contracts, which expire September 30, 2027, plus an allowance for inflation as delineated within the existing contracts. A separate sensitivity analysis has been performed to identify the potential rate impacts of a range of potential collection costs based on recent market benchmarking and discussions with staff. CAPITAL EXPENDITURES Capital reinvestment and funding is integral to the continuity and quality of service delivered to customers. These expenditures, coupled with the need to meet the growth requirements of the System, contributed to the capital improvement plan developed by County staff. The majority of the capital funding is associated with the renewal, replacement, rehabilitation, upgrade, and betterment (renewals and replacements) of the existing infrastructure. The CIP also includes capital funding associated with new infrastructure and System expansion. Major projects in the CIP include: i) master planning and upgrade of the Immokalee site; ii) maintenance of the deep injection well for leachate disposal; iii) regular maintenance on solid waste facilities iv) expansion and optimization of the Collier County Landfill; v) access and planning of the Resource Recovery Business Park. The total programmed capital expenditures are estimated at approximately $44.2 million during the Forecast Period and averages approximately $8.8 million annually. Estimates of annual capital spending provided by Division staff have been escalated by 3.5% annually beginning in Fiscal Year 2025 to provide an allowance for inflation. The chart below provides a summary of the capital expenditures, capital fund cash reserves, and deposits to the capital fund for the Forecast Period: $18 $16 $14 2 $12 $10 $8 $6 $4 $2 $0 Capital Improvement Plan Funding 2024 2025 2026 2027 2028 Ending Cash Balance - Disposal � Ending Cash Balance - Collection Deposits - Disposal � Deposits - Collection — — — Capital Spending -4- I Packet Pg. 648 All identified funding requirements are anticipated to be financed from internal sources derived from existing cash reserves and programmed transfers from rate revenues to the Solid Waste Capital Fund. The CIP is a planning document, which is presented on an appropriations basis, and the timing and completion of projects are subject to changes or delays. As a result, it is recommended that staff continue to annually re-evaluate the financial forecast and the need for adopted or additionally identified rate adjustments. A major driver regarding the need for additional rate adjustments are the required deposits for capital reinvestment from rate revenues (i.e., pay -go). The recommended rates generate an average of approximately $5.6 million per year of pay -go funding over the forecast period and, when combined with the use of cash reserves, fully fund the capital improvement program. Debris Mission Reserve Fund During Fiscal Year 2023, Raftelis was tasked with providing hurricane reserve policy recommendations for the Division. Publicly available data from the National Oceanic and Atmospheric Administration (NOAA) on hurricane frequency and data from FEMA regarding debris removal claims and reimbursements were analyzed and used to develop a recommended range of cash reserves. It is recommended that the County continue building the Division's debris mission reserve equal to 10% of solid waste revenues, within a minimum and maximum range of $7 million to $10.5 million in today's dollars. It is further recommended that the County consider annually adjusting the reserve target for inflation with an overall reassessment of the policy requirements every 5 years. For the purposes of this study, annual transfers of $1.5 million have been recognized. Should the County reach or exceed the minimum threshold of recommended reserves, future deposits to the Debris Mission Reserve fund could be reduced to a range of $390,000 to $875,000. $9 $8 $7 $6 $5 .2 �b4 $3 $2 $1 $0 Debris Mission Reserve Fund M M M M E 2024 2025 2026 2027 2028 � Ending Fund Balance ---Target - 10% of Revenues (Remainder of page intentionally left blank) -5- I Packet Pg. 649 Principal Findings Based on the key assumptions of the Study, the following rate revenue increases have been identified to fund the projected needs of the System over the forecast period: Description Tipping Fee Rate Revenue Adjustments [2] Assessment Rate Adjustments [3] Identified Rate Adjustments 2025 2026 2027 2028 2.5% 2.5% 2.5% 2.0% 2.5% TBD TBD TBD [1] Assumes implementation of rate adjustments at the beginning of each respective Fiscal Year. Additional rate adjustments have been identified in future years. [2] Reflects estimated annual increases in revenues assuming the adoption of the recommended tipping fees as discussed later in this report. [3] Changes in non -ad valorem assessments require annual adoption in accordance with Florida Statute. The following charts provide a breakdown of the projected revenue requirements for both the Disposal Fund (4070) and Mandatory Trash Collection Fund (4073). These projections assume 2.5% annual increases in Fund 4073 rates and do not incorporate the impact of the new residential collection contract when the current one expires on September 30, 2027. Revenue Requirements - Fund 4070: Solid Waste Disposal $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 2024 2025 2026 2027 2028 — Operating Expenses Capital Transfers — I nterfund Transfers (Non -Capital) —Revenues at Existing Rates —Revenues at Proposed Rates (Remainder of page intentionally left blank) M I Packet Pg. 650 1 Revenue requirements - Fund 4073: Mandatory Trash CoUection $50 $45 ------ $40 $35 $30 $25 $20 $15 $10 $5 $0 2024 2025 2026 2027 2028 Operating Expenses � Disposal Expense (Transfer to Fund 4070) Capital Transfers � Interfund Transfers (Non -Capital) —Revenues at Existing Rates — — — Revenues at Proposed Rates The identified rate adjustments have been estimated to produce sufficient revenues to meet the needs of the System during the Forecast Period. The primary drivers of the projected increases in gross revenue requirements are due to the effects of inflation on operating and maintenance expenditures, pay -go funding required to fund the capital improvement program, the need to fund a hurricane reserve fund, and the need to maintain adequate operating reserves and compliance with the County's adopted budget policies. Though rate increases through Fiscal Year 2028 have been identified, we recommend tipping fees for Fiscal Years 2025 through 2027 be adopted in conjunction with the rate design recommendations as discussed subsequently in this report. Furthermore, as required by statute, all changes to the assessment must be adopted annually. CASH BALANCES The following table provides a summary of the projected cash balances by fund: Fiscal Year Ending September 30, Description 2024 2025 2026 2027 2028 Fund 4070 — Solid Waste Disposal $10,284 $10,116 $10,148 $10,498 $10,789 Fund 4071 Landfill Closure and Debris Mission Reserves 1,830 3,355 4,896 6,453 8,025 Fund 4073 — Mandatory Trash Collection [2] 12,946 13,624 14,382 14,949 15,767 Fund 4074 — Solid Waste Capital Projects 16,954 11,901 10,886 12,510 11,218 Total Fund Balance $42,015 $38,997 $40,312 $44,410 $45,799 [1] Represents the projected ending cash balances in each respective year of the forecast. [2] Reflects cash balances assuming 2.5% annual increases in non -ad valorem assessment are adopted annually through the forecast period. Reserves are assumed to allow for the mitigation of rate increases as a result of the new franchise collection rates that will be in place by fiscal year 2028. Additional adjustments will be necessary. -7- I Packet Pg. 651 As shown in the table above, it is anticipated that the use of existing cash reserves in Fund 4074 to finance the capital needs of the System will be required. However, overall cash balances are projected to increase during the Forecast Period primarily due to: i) the revenue requirements associated with funding the Debris Mission Reserve fund; ii) the surplus generated to maintain the unrestricted reserve target of 45 to 90 days of operating expenses established by adopted budget guidance policies; iii) the anticipated reimbursement from FEMA for debris removal costs associated with Hurricane Ian assumed during Fiscal Year 2027; and iv) the assumed 2.5% annual adjustment to the residential assessment (which is proposed for Fiscal Year 2025, subsequent years considered for adoption by the Board annually) produces a surplus over the forecast period and may help mitigate the effects of anticipated increases in costs associated with the expiration of the County's contract hauler agreements on September 30, 2027. Cost of Service and Rate Design A preliminary cost -of -service analysis was completed during Fiscal Year 2023 to form the basis of the approach and strategy from which the following recommendations were derived. Based on the projected revenue requirements and identified rate adjustments, the existing rate structure was evaluated using cost -of -service principles. Municipal solid waste (MSW), C&D, biomass, and tires are generally the primary waste streams within the County and were the focus of this analysis. Costs were allocated by budgetary line item to the various charges based on a rational nexus among the costs and the respective fees. Adjustments to the allocated rates were then made to recognize: i) benefits of an integrated solid waste operation; ii) market comparisons; iii) the existing rate structure and a phased approach to implementation of rates; and iv) general rounding of calculated rates to the nearest cent. Fiscal Year 2027 serves as the Test Year, which is the year for which rates were designed and calculated based upon the projected revenue requirements identified during that year. In conjunction with the assumed uniform annual increases of 1.5% per year for rates not identified below, the recommended rates produce annual tipping fee revenue increases of approximately 2.5% per year. The following table presents the allocation of revenue requirements by cost center and other major revenue requirement categories, adjustments as previously discussed, and the recommended phased implementation plan. Description Net Revenue Requirements Res Com Res Com IVISW IVISW C&D Biomass Biomass $15,946 $14,114 $3,579 $844 $391 Res Com Tires Tires Total $20 $126 $35,019 Adjustments (2,452) 2,033 271 73 58 2 15 0 Adjusted Net Revenue Requirements $13,494 $16,148 $3,850 $917 $449 $22 $140 $35,019 Billing Units (Tons) 146,494 175,303 39,890 15,947 7,807 94 594 Calculated Rates FY27 $92.11 $92.11 $96.52 $57.48 $57.48 $235.74 $235.74 [1] All tipping fees for material classes not shown above and those not equivalent to existing fiscal year 2024 rates shown above are assumed to increase uniformly by 1.5% per year for fiscal years 2025 through 2027. El I Packet Pg. 652 As shown in the prior table, the following rate structure changes have been recognized: The residential and commercial MSW tipping fees are unified into a single rate acknowledging the results of the cost -of -service analysis and both the environmental and economic benefits of the recycling and disposal facilities as well as the County services and programs that are shared across customer classes. 0 The C&D tipping fee is held constant at the Fiscal Year 2024 rate through Fiscal Year 2027. The residential tire and residential biomass tipping fees are increased up to the existing Fiscal Year 2024 commercial tire and biomass tipping fees, respectively. The commercial biomass and tire tipping fees are held constant. The table below shows the recommended phased rates for fiscal year 2025 through fiscal year 2027. All tipping fees not listed below are assumed to increase by 1.5% per year fiscal years 2025 through 2027. Together, the recommended rates are anticipated to produce approximately 2.5% per year in additional rate revenues. Annual % Description 2024 2025 2026 2027 Change Residential MSW $80.85 $84.44 $88.19 $92.11 4.44% Commercial MSW 86.91 88.61 90.34 92.11 1.96% C&D 96.52 96.52 96.52 96.52 0.00% Residential Biomass 52.40 54.04 55.73 57.48 3.13% Commercial Biomass 57.48 57.48 57.48 57.48 0.00% Residential Tires 223.12 227.25 231.46 235.74 1.85% Commercial Tires 235.74 235.74 235.74 235.74 0.00% (Remainder of page intentionally left blank) In I Packet Pg. 653 RATE COMPARISON For the purposes of this analysis, a comparison of solid waste charges (annual residential charges and commercial tipping fees) with other solid waste entities was prepared to provide an indication of the competitiveness of the existing rates charged by the County. Based on this comparison, the proposed residential assessment will remain below the survey average. While the commercial tipping fees remain modestly above average, the recommendation includes maintaining all but the commercial MSW rate at the existing (fiscal year 2024) fee level through fiscal year 2027. Residential Description Annual Charges MSW C&D Yard Waste Tires Collier County: Existing Rates $249.29 $86.91 $96.52 $57.48 $235.74 Proposed Rates FY25 255.52 88.61 96.52 57.48 235.74 Cher Solid Waste Entities: Broward County $487.00 $65.00 $65.00 $50.00 $130.00 Charlotte County 292.28 39.28 39.28 39.28 125.46 Hillsborough County 437.51 104.60 77.48 48.11 186.25 Lee County 307.06 63.56 63.94 39.97 160.00 Manatee County 283.80 40.00 61.00 40.00 86.00 Miami -Dade County 509.00 107.80 107.80 107.80 140.00 Monroe County 457.15 136.00 136.00 136.00 136.00 Palm Beach County 466.33 42.00 65.00 35.00 100.00 Sarasota County 233.59 59.08 58.19 46.05 290.61 Other Florida County Averages $385.97 $73.04 $74.85 $60.25 $150.48 [1] Reflects current rates for service as of October 2023. (Remainder of page intentionally left blank) _10- I Packet Pg. 654 1 Annual Assessment Comparison $600.00 $500.00 $457 $466 $487 $509 $438 - M M Survey Average $386 $400.00 $300.00 $234 $249 $256 $292 $307 $200.00 $100.00 $0.00 ,A 411� Alp CP 1 x Week Collection �2x Week Collection I�s XA X�s cp 0 0 Qj -Other Florida County Averages MSW Tipping Fee Comparison $16000 $140.00 $136.00 $12000 Survey Average $73.04 $104.60$107.80 $100.00 $86.91 $88.61 $8000 $59.08 $63.56 $65.00 $60.00 $39.28 $40.00 $42.00 $4000 $20-00 $000 X� 'A ,P Z�- §�, ,0 x CP CP CP & ZZ 'n el 6 ..pN q, Old c�' < 0 SP N 4�' IP0 le �IMSWTipping Fees -Other Florida County Averages C&D Tipping Fee Comparison $16000 $140.00 $136.00 $120.00 Survey Average $7485 $96.52 $96.52 $107.80 $100.00 $8000 - $58.19 $61.00 $63.94 $65.00 $ $77.48 $60.00 39.2 $40 - 00 $18 $20.00 $000 ,�A 'A 'A CP CP cp�' cp�' CP �C&D Tipping Fees -Other Florida County Averages 0 (n LO 04 CD CNII I Packet Pg. 655 1 Yard Waste Tipping Fee Comparison $160.00 $140.00 $120.00 $100.00 $80.00 Survey Average $60.25 $60.00 5 $48.11 S $40.00 $35.00 $39.28 $39.97 $40.00 $20.00 IZO 00 NA 1�110 P P "§F, CP c? 0 61 kz zz o 41� �Yarcl Waste Tipping Fees -Other Florida County Averages Tire Tipping Fee Comparison $350.00 $300.00 $136.00 $290.61 $250.00 $235.74 $235.74 $200.00 Survey Average $150.48 $186.25 $160.00 $150.00 _$125.46 $130.00 $136-00 $ 0 $ 100.00 8 00. $50.00 $ 1 0 $1 1 00 $0.00 1�10 1§1 1§11A A A 0 0§�' 0 cj C, .�z \c� el �Tire Tipping Fees -Other Florida County Averages (Remainder of page intentionally left blank) -12- I Packet Pg. 656 1 Collection Contract Sensitivity Analysis Collier County's existing residential franchise collection contract expires on September 30, 2027. Based on recent market bids and recently negotiated contract rates obtained by other local governments with similar contractual arrangements, a sensitivity analysis was performed to provide a range of potential costs. Four scenarios were developed as follows: Scenario 1: Assumes a Fiscal Year 2028 collection rate of $259.00 per residential unit estimated based on a review of market rates. Scenario la assumes a single adjustment in Fiscal Year 2028 while Scenario Ib recognizes a 3-year phased approach beginning in Fiscal Year 2027. Scenario 2: Assumes a collection rate of $194.00 in Fiscal Year 2028 based upon the initial Collier County franchise collection rate adjusted for inflation as measured by the BLS Garbage and Trash Collection Index and estimates thereof through Fiscal Year 2028. Scenario 2a assumes a single adjustment in Fiscal Year 2028 while Scenario 2b recognizes a 3-year phased approach beginning in Fiscal Year 2027. Description Scenario 1 - Market Survey [1] a. Single Increase b. Phased Increase Scenario 2 - Inflation Adjusted [2] a. Single Increase b. Phased Increase Fiscal Year Ending September 30, 2025 2026 2027 2028 2029 2.50% 2.50% 2.50% 47.00% 2.00% 2.50% 2.50% 15.25% 15.25% 15.25% 2.50% 2.50% 2.50% 22.50% 2.00% 2.50% 2.50% 8.50% 8.50% 8.50% [1 ] Rate adjustments needed to cover collection contract cost of $259.00 per year beginning October 1, 2027. [2] Rate adjustments needed to cover collection contract cost of $194.00 per year beginning October 1, 2027. (Remainder of page intentionally left blank) -13- I Packet Pg. 657 Areas of Concern/Focus CurTent contractual agreements with the County's waste haulers will expire on September 30, 2027. Prior to the contracts expiring, the County will either rebid or renegotiate the existing collection hauling contracts, which is anticipated to begin as early as the current Fiscal Year. The County's current contract rate is below the average market rate of recently awarded contract rates. Changes to the collection contract will have a material impact on operations, operating expenses, and future rate adjustments. Recycling markets have been declining and processing costs have been increasing. Depending on the way recyclables are handled under the waste hauler contracts in place after September 30, 2027, additional operating costs may be incurTed. Any potential changes to permitted landfill height would reduce the life of the landfill and over time would either require expansion (i.e., additional capital investment) or disposing of waste out of County at an increased operating cost. The latter option would nearly double disposal costs under existing contracts and, given the effects of rapid population growth contributing to increased demand for essential services and evolving regulatory requirements, establishing alternative contractual disposal means could prove significantly more costly than options under existing contractual arrangements. (Remainder of page intentionally left blank) -14- I Packet Pg. 658 Conclusions and Recommendations Based on the assumptions, considerations, and analyses as summarized herein, we are of the opinion that: The County's existing rates for service are not anticipated to recover the projected revenue requirements (System expenditure and funding needs) for the Forecast Period. Therefore, as of the date of this report, the following rate revenue adjustments for solid waste service are identified. a. It is recommended that the identified tipping fee adjustments for Fiscal Year 2025 through 2027 be considered for adoption. Description Tipping Fee Rate Revenue Adjustments [2] Identified Rate Adjustments 2025 2026 2027 2028 2.5% 2.5% 2.5% 2.0% [1] Assumes implementation of rate adjustments at the beginning of each respective Fiscal Year. [2] Reflects estimated annual increases in revenues assuming the adoption of the recommended tipping fees as discussed previously in this report. b. It is recommended that the assessment adjustments for Fiscal Year 2025 shown below be considered for adoption while future rate increases will ultimately depend upon the new contractual agreement and eventual franchise collection rates adopted by the County. Description Assessment Rate Adjustments [1] Identified Rate Adjustments 2025 2026 2027 2028 2.5% TBD TBD TBD [1] Changes in non -ad valorem assessments require annual adoption in accordance with Florida Statute. The County's franchise collection agreement expires September 30, 2027. Future increases to the assessment will be reviewed annually and, where possible, based upon the terms of the eventual contract awarded for collection services. 2. A cost -of -service analysis was performed and considered along with the strategic goals of the County. It is recommended that the calculated tipping fees for the forecast period be considered for adoption. 3. The projected results and assumptions contained in this Study may vary from actual results. 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