Interoffice Memorandum
DATE: May 13, 2026
TO: Mayor Jerry L. Demings and County Commissioners
THROUGH: N/A
FROM: Kerry Kates, P.E., LEED AP, Deputy Director, Utilities
CONTACT: David Gregory, Manager, Solid Waste Management Division
PHONE: 407-254-9622
DIVISION: Solid Waste Management Division
ACTION REQUESTED:
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Approval to establish the Haulers' compensation rates as listed, set the MSBU rate of $430 for Program Year 2027, and authorization to include the Tentative Mandatory Refuse Collection Program Rate of $430 on the 2026 Notice of Proposed Taxes. All Districts. (Solid Waste Management Division)
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PROJECT: N/A
PURPOSE: Orange County contracts with waste hauling companies ("Haulers") to provide residential solid waste and recyclable materials collection service through the Mandatory Refuse and Recycling Program ("Program"). Section 32-183 of the Orange County Code requires that the Board set the annual compensation rate to the contract waste hauling companies for collection of solid waste and recyclable material by July 15 of each year. Additionally, in order to include the Municipal Services Benefit Unit (MSBU) assessment for the Program on the Notice of Proposed Taxes, the Board also needs to set the tentative MSBU rate per household. This memo outlines the Program cost components, the Hauler compensation, and the MSBU rate recommendation for Calendar Year 2027. The final approval of the MSBU rate will occur during the first budget public hearing in September.
The MSBU rate has five main components: Hauler Compensation, Disposal, Program Administration, Recycling, and Reserves/Rate Stabilization.
Hauler Compensation Component
In accordance with Exhibit A, Section 23 Compensation, of the Residential Solid Waste and Recyclable Collection Services Term Contract, the Haulers shall receive an annual adjustment in the compensation per household based on changes in the Consumer Price Index, as explained in Attachment E of the collection c...
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