STRATEGIC PRIORITY: Livable
AGENDA DATE: March 26, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Department of Sanitation Services
EXECUTIVE: Alina Ciocan
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SUBJECT
Title
A public hearing to receive comments on an ordinance amending 72 franchises for solid waste collection and hauling, pursuant to Chapter XIV of the Dallas City Charter, and Chapter 18, Article IV, of the Dallas City Code; and, at the close of the public hearing, consideration of an ordinance amending the aforementioned franchises to (1) modify the solid waste collection franchise fee; and (2) provide an effective date (list attached to the Agenda Information Sheet) - Financing: No cost consideration to the City (see Fiscal Information)
Body
BACKGROUND
On September 18, 2024, the City Council amended Chapter 18 of the City Code, increasing the base solid waste franchise fee from four (4) percent to six (6) percent of the franchisee’s gross receipts. This increase was the first adjustment to the fee structure since implementation in 2007. The revenue generated supports the City’s street maintenance program.
While the fee adjustment was approved, existing franchise ordinances are not automatically increased to the new base rate. Each individual ordinance must be amended to reflect the new rate, after a public hearing is held. The estimated fiscal impact of the increase for FY 2025 is $1.5M based on an effective date of April 1, 2025. This revenue increase is included in the FY 2025 adopted budget.
The Department of Sanitation Services sent notices to all affected franchise ordinance holders and provided an opportunity to meet regarding proposed amendments.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Government Performance and Financial Management Committee was briefed on the Solid Waste Franchise Program Updates Including Program Administration, Proposed Franchise Fee Increase, and Recommended Actions on December 10, 2024.
On September 18, 2024, the City Council amended Chapter 18 of the Dallas City Code to amend the solid waste collection franchise fee by Resolution No. 24-1350.
The Government Performance and Financial Management Committee will be briefed by memorandum on March 24, 2025.
FISCAL INFORMATION
No cost consideration to the City. Franchises generate additional revenues to the City.