At their February 26 meeting, the City Commissioners voted 4-1 to pass an amendment to the City’s contract with Marpan Recycling and a recycling rate increase.
Commissioner Jeremy Matlow voted against the changes, noting that he is concerned about the financial impact of the rate increase and would rather present a plan to the community first.
Under an amendment to the City’s contract with Marpan, residential service rate will increase from $19.91 to $20.91 per month.
The rate increase will result in around $750,000 per year to cover the cost of the rest of the contract as well as future recycling costs.
At the February 26 meeting, the City Commissioners will vote on an amendment to the City’s contract with Marpan Recycling and a resolution to increase solid waste rates.
In December 2019, Marpan Recycling announced that, because of price changes in the recyclables market, Marpan can no longer serve Tallahassee long-term. Marpan offered to enter a 12-month interim agreement to give the City and the County time to determine alternative options for the recycling program.
At their January 2020 meetings, the City and County Commissioners both authorized an interim contract with Marpan.
The amendment covers the remainder of the contract, which will expire on January 21, 2021, unless the City chooses to extend it for another eight months.
Under the amendment, the City will increase payments to Marpan, paying an $80.25 per ton processing fee for single-stream recyclables.
“The City’s commitment to continue its recycling program will of necessity result in higher costs,” staff reports.
“In the short term, payments to Marpan will increase under the amended contract, and a long-term solution will result in future cost increases that are unknown at this time,” staff reports.
The proposed rate increases in the resolution will fund the increased payments.
“Staff is recommending a change to solid waste rates that will increase residential service and commercial barrel service bills by $1.00 per month,” staff reports. “Residential service would increase from $19.91 to $20.91 per month. Commercial rates for dumpster service would increase by $0.35 per pickup.”
Staff reports that the revenue from the rate increase will stay in the solid waste enterprise fund to cover contract costs and fund future recycling options.
Based on the City’s 62,400 residential customers, the rate increase will raise approximately $750,000 each year to address future recycling costs.
The staff notes that with the increase, the City of Tallahassee residential solid waste monthly rate of $20.91 will be the sixth lowest when measured against 20 comparable Florida cities.
If passed, the resolution will take effect on March 1, 2020.
According to the meeting agenda, the City and the County are currently working together to explore alternatives for the future of the recycling program.