Commission approves first reading to change commercial solid-waste franchise fees from volume to revenue percentage

The West Palm Beach City Commission approved on first reading an ordinance to change fees charged to commercial solid-waste franchise holders from a volume-based structure to a revenue-based structure and to update franchise regulations.

The ordinance (No. 5133-25) would replace the current annual fee of $12,500 plus $1.00 per cubic yard with a requirement that franchise holders remit 10% of monthly gross revenue they collect from city customers. The change, proposed by the Public Works Department and supported by an independent consultant study, is intended to improve auditability and align the city’s franchise fee with practices used by comparable municipalities.

Leon Pinder, the city’s Public Works director, told commissioners the ordinance applies only to large commercial collection franchises (collections over 10 cubic yards) and does not change residential or small-business city-provided services. "The ordinance before you today does not apply to or impact residential or mom and pop small businesses," Pinder said. He explained the city had seven commercial franchise holders and that the current volume-based fee had been unchanged for 19 years.

Pinder cited a consultant report completed in April 2025 (Raftelus Financial Consultants) that recommended switching to a revenue-based fee, improving reporting requirements, and increasing bond requirements from $12,500 to $50,000. Under the proposal, haulers would provide certified annual reports (audited or CPA-certified) and the revenue-based fee range would place the city at the low end of comparable municipalities (10%–25% typical range).

Assistant City Administrator Jose Luis Rodriguez told commissioners that haulers that responded to outreach preferred the revenue-based formula because it simplifies accounting and is easier to certify to the city. Rodriguez said the city reached five of the seven franchise holders and those five reported no objection to moving to the new formula.

If the commission adopts the ordinance at second reading, staff said it will work with franchise holders to amend agreements and the new fee would take effect Oct. 1, 2025. Staff recommended approval on first reading and scheduling a second reading for May 27, 2025. The motion to approve first reading carried unanimously.

The ordinance also proposes clarifying franchise application procedures, requires annual certified reports, and would raise bond levels to protect the city and provide additional financial assurance.

The presentation and Q&A emphasized that the change is targeted at large commercial haulers and is not intended to increase costs for residents or small businesses; commissioners asked about timing and outreach before the vote. The commission scheduled second reading for May 27, 2025.