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HomeMy WebLinkAboutItem 07 - Solid Waste ServiceITEM 0 MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER 0 MEETING DATE: SEPTEMBER 18, 2001 SUBJECT: AMEND TRINITY WASTE ORDINANCE FOR SOLID WASTE SERVICE RECOMMENDATION: City Council to consider an amendment of the contract with Trinity Waste Systems for Solid Waste Disposal and authorize the City Manager as signatory. BACKGROUND: Trinity Waste Systems Inc. was granted a franchise contract to provide solid waste collection services for residential and commercial customers in the City of Grapevine on May 2, 1995. The term of the contract is for 10 years and will expire on May 2, 2005. The contract contains a provision for extension of the term in five-year increments if mutually agreed upon by Trinity and the City. Currently, Trinity has the right to adjust the rates for residential and commercial customers based on a formula that combines the Consumer Price Index for the DFW Metroplex and the average cost of disposal of area landfills. The cost of service increase for fiscal year 2002 was to be 2.52%. Trinity has made a proposal to the City that, if granted, would offset this increase. Trinity has proposed that in exchange for a contract extension of five years added to the 2005 expiration date of their existing contract, they would forego rate increase requests for the next three years and then only request an increase every other year. Rate requests would not be cumulative but only based on the formula of Consumer Price Index and landfill disposal costs for that year. The rate request schedule would be as follows: Fiscal Year 2002 No rate adjustment 2003 No rate adjustment 2004 No rate adjustment 2005 Rate adjustment 2006 No rate adjustment September 12, 2001 (1:46PM) 2007 Rate adjustment 2008 No rate adjustment 2009 Rate adjustment 2010 No rate adjustment Trinity has provided excellent service and they are responsive to customer problems. This proposal will benefit the citizens and commercial customers of Grapevine by keeping solid waste disposal rates at their current level for the next three years and then increasing only every other year to 2010. Staff and the Utility Committee recommend approval of the contract amendment. /MS September 12, 2001 (10:54AM) 10M �16 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS AMENDING ORDINANCE NO. 95-35, THE SOLID WASTE FRANCHISE; EXTENDING THE TERM OF THE FRANCHISE FIVE YEARS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine approved Ordinance No. 95-35 which granted a franchise for solid waste services within the City (the "Franchise") to the franchisee; and WHEREAS, Section 3 of the Franchise provides that it may be extended upon the mutual agreement of the parties for five years; and WHEREAS, Section 23 of the Franchise provides that the Franchise may be amended on the mutual agreement of the parties; and WHEREAS, the franchisee has requested such an extension and in doing so has offered favorable incentives to the City, which would include amending the Franchise; and WHEREAS, the City has determined that the extension and amendment of the Franchise, including the proposed incentives, is in the best interest of the City, and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated above are found to be true and correct and are incorporated herein as if copied in their entirety. Section 2. That Section 3 of Ordinance No. 95-35 is amended by the addition of the following: "This Ordinance is extended by one (1) additional five (5) year period, commencing on June 1, 2005." Section 3. That Section 8 of the Franchise is hereby amended and replaced in its entirety as follows: BE "SECTION 8 - REPORTING COMPANY shall provide CITY with all necessary reports required by the CITY for its use in managing solid waste services in Grapevine. COMPANY will provide, at minimum, the following reports: 1 Solid Waste Report - at least quarterly, COMPANY will provide CITY said report, which at minimum, includes the number of loads, total yards, and total tonnage of non -recyclable materials deposited by landfill. 2. Commercial Recycling Report - at least quarterly, COMPANY will provide CITY said report, which at minimum, includes the number of commercial customers by type, number of participants by type, participation rate, tonnage of materials by material. 3. Residential Recycling Report - at least quarterly, COMPANY will provide CITY said report, which at minimum, includes the number of residential customers, number of participants, participation rate, tonnage of materials by material. 4. Monthly Customer Complaint Report - at least quarterly, COMPANY will provide CITY said report, which at minimum, includes the number of customer complaints received from residents of CITY and actions taken to address complaints. 5. Annual TNRCC Solid Waste Reports - COMPANY will complete all necessary solid waste reports on behalf of CITY for submittal to TNRCC. All monthly reports will be received by CITY on or before the 15th of the month following the reporting period. Annual TNRCC reports will be received by CITY at least 30 days prior to due date for CITY review and approval. The CITY may, at its sole discretion, require other reports it believes is necessary for the management of solid waste services in Grapevine." Section 4. That Sections 11 through 25 of the Franchise be renumbered to Sections 12 through 26. Section 5. That a new Section 11 be added to the Franchise to read as follows: "Section 11 — Customer Complaint Resolution ORD. NO. 2 COMPANY shall develop and maintain a system for documenting, tracking, and responding to customer complaints. COMPANY shall ensure and document that customer complaints are addressed within 24 hours of COMPANY receiving notification. COMPANY shall maintain records of customer complaints for the duration of this ordinance. COMPANY shall make records available for inspection by CITY at CITY's request." Section 6. That Section 12-2 of the Franchise is hereby amended and replaced in its entirety to read as follows: "Base Rate Escalation: COMPANY shall maintain residential and commercial rates currently in effect (the "Base Rates") for a period of three (3) years from the passage of this Ordinance. Once during the fourth (4th) year following the passage of this Ordinance, and every other year thereafter during the term of this Ordinance (the "Rate Modification Date") the Base Rates shall be increased by a combination of (1) the percentage increase in the CPI for the most recent twelve (12) month period (April — March Southwest Statistical Summary) immediately preceding the Rate Modification Date, and (2) any increase in disposal costs. COMPANY shall submit to CITY in writing its adjustment to the Base Rate and the supporting data for same on or before July 1 of every other year beginning on July 1, 2004. The base rate shall be divided into operations and disposal. Operations equal 70% of the base rate. Disposal equals 30% of the base rate. Operations will be adjusted by the CPI for the most recent twelve (1 2) month period (April I - March 30). Disposal will be adjusted by the average increase in disposal cost as represented in Appendix B. base rate x .70 = 0 base rate x .30 = D Where 0 is Operations and D is Disposal 0 X CPI = NO D X Disposal Cost = ND Where NO is New Operations and ND is New Disposal NO + ND = New Base Rate Any other cost increases including state, federal and local fees, taxes or other additional disposal regulatory charges imposed on disposal since ORD. NO. 3 the last rate modification, and any expenditures required of COMPANY solely because of federal, state or local law, rule, regulation, ordinance, order, permit or permit condition becoming effective since the last rate modification may be considered by CITY on a case-by-case basis. If COMPANY makes a request for increases above the amount calculated above. COMPANY must provide sufficient data, including, but not limited to, audited financial statements. Every adjustment to COMPANY charges or compensation established herein will be cumulative and in addition to every other adjustment conferred herein." Section 7. That all ordinances or any parts thereof in conflict with the terms of this ordinance shall be and hereby are deemed repealed and of no force or effect; provided, however, that the ordinance or ordinances under which the cases currently filed and pending in the Municipal Court of the City of Grapevine, Texas, shall be deemed repealed only when all such cases filed and pending under such ordinance or ordinances have been disposed of by a final conviction or a finding not guilty or nolo contendere, or dismissal. Section 8. If any section, article, paragraph, sentence, clause, phrase or word in this ordinance, or application thereto any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of the ordinance despite such invalidity, which remaining portions shall remain in full force and effect. Section 9. The fact that the present ordinances and regulations of the City of Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace and general welfare of the public creates an emergency which requires that this ordinance become effective from and after the date of its passage, and it is accordingly so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 18th day of September, 2001. ORD. NO. 4 ATTEST: