HomeMy WebLinkAboutItem 09 - Solid Waste Franchise AgreementMEMO TO:
FROM:
MEETING DATE
SUBJECT
RECOMMENDATION:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
BRUNO RUMBELOW, CITY MANAGER
SEPTEMBER 18, 2012
SOLID WASTE FRANCHISE AGREEMENT AMENDMENT AND
RATE INCREASE AMENDMENT
City Council consider adopting the following:
• an ordinance amending the City's current franchise agreement (Ordinance No.
95 -35) with Allied Waste Services of Fort Worth, LLC. to provide cart recycle
service and extend the term of the franchise,
• an ordinance amending Chapter 25, Utilities and Services , Article III Solid Waste
Disposal to reflect adjustments to the residential solid waste and recycling
collection rates, and exempting recycling from any Consumer Price index
increases during the first five year term
and take any necessary action.
BACKGROUND:
Allied Waste Services (Allied) and its predecessor companies has been the City's solid
waste and recycling services provider for both residential and commercial customers in
Grapevine since May 1995. Section 24 of the Franchise provides that the Franchise
may be amended on the mutual agreement of the parties.
In the past year, Allied has implemented a pilot program to determine the citizen reaction
to converting residential recycling from bins to recycle roll -cart program in two of
Grapevine's thirteen residential recycle routes. The pilot program resulted in doubling
the recycling volume in pilot neighborhoods. A survey of the pilot residents indicated a
very positive response to the cart program.
Based on the results of the pilot program, Allied has proposed to convert recycling for
Grapevine residents from recycle bins to recycle roll -carts for an increase of $0.96 per
month from $11.26 to $12.22.
Accompanying this price increase is a modification to our current contract with Allied.
We currently have three years remaining on a 5 year renewal that was approved in 2010
with one additional five year renewal period. To support this capital costs associated
with the carts and truck modifications Allied has proposed a 5 year contract with an
automatic 5 year renewal. This proposed contract provides the City the opportunity to
cancel the contract at the end of 5 years if the City finds that Allied has not performed in
a satisfactory manner in accordance with the needs of the citizens of Grapevine.
The other terms of service will remain the same, including twice weekly garbage pickup,
unlimited weekly brush and bulk pickup and weekly recycling.
In addition, Allied will be developing a mobile app for the City that will make trash and
recycling information easily available to residents. They will also increase participation at
City and keep Grapevine Beautiful events promoting recycling.
A 2010 survey indicated that overall Grapevine residents are very satisfied with the
frequency of service as well as the quality of service. The community benefits from
Allied's participation at festivals and special events, as well as recycling outreach and
education in homes and at schools.
The Council has had multiple workshops on this topic and given that Allied has now
agreed to a price that is below a dollar for the rolled cart program, staff is comfortable
recommending approval at this time.
Allied will deliver the roll -carts in October and provide residential roll -cart recycle service
effective November 1, 2012.
JSLIds
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS, AMENDING ORDINANCE
NO. 95 -35, AS AMENDED, THE SOLID WASTE
FRANCHISE; UPDATING THE TERM OF THE FRANCHISE
TO FIVE (5) YEARS WITH A FIVE (5) YEAR RENEWAL;
PROVIDING A SEVERABILITY CLAUSE; DECLARING AN
EMERGENCY AND PROVIDING AN EFFECTIVE DATE
WHEREAS, on June 1, 1995, by passage of Ordinance No. 95 -35 the City of
Grapevine, Texas granted a franchise for solid waste services within the City (the
"Franchise ") to the franchisee; and
WHEREAS, on September 18, 2001, by passage of Ordinance No. 2001 -67 the
City of Grapevine, Texas extended the term of the franchise five (5) years commencing
on June 1, 2005 and renumbered Sections 11 through 25 of the Franchise to Sections
12 through 26; and
WHEREAS, on July 20, 2010, by passage of Ordinance No. 2010 -30 the City of
Grapevine, Texas extended the term of the franchise five (5) years commencing on
August 1, 2010; and
WHEREAS, Section 3 of the Franchise provides that it may be extended upon
the mutual agreement of the parties; and
WHEREAS, Section 24 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 franchisee has requested an updated five (5) year contract
period and a five (5) year automatic renewal, which would include amending the
Franchise; and
WHEREAS, the City has determined that amending the Franchise, is in 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 2 of the Ordinance No. 95 -35, as amended, is amended
by amending Section 2(22) to read as follows:
"22. RECYCLING CONTAINERS: A sixty -five (65) gallon or ninety -five (95)
gallon container for use by residential customers for curbside recyclable
materials collection by COMPANY."
Section 3. That Section 3 of Ordinance No. 95 -35, as amended, is amended by
amending Section 3 to read as follows:
"SECTION 3 —TERM
The initial term of this Contract shall be for a period commencing on November
1, 2012 (the "Effective Date ") and terminating on October 31, 2017 (the "Initial
Term "). After the Initial Term, this Contract will be automatically renewed for a
five (5) year term which begins November 1, 2017 (the "Renewal Term "),
unless the CONTRACTOR provides the City of Grapevine with notification 90
days of the intent not to renew and/or Grapevine City Council makes a finding
prior to 90 days to the termination date that CONTRACTOR has not performed
in a satisfactory manner in accordance with the needs of the citizens of CITY.
All reference herein to the "Term" of this Contract shall be deemed to include
the Initial Term and any Renewal Term."
Section 4. That Section 5 of Ordinance No. 95 -35, as amended, is amended by
amending Section 5(5) to read as follows:
"5. All recyclable materials shall be placed in a sixty -five (65) gallon or ninety -
five (95) gallon container furnished by COMPANY and placed at curbside
on the street bearing the customer's address. Recyclable materials shall
not be placed at curbside more than twelve (12) hours prior to the day of
pickup. All containers shall be placed at the foregoing prescribed locations
not later than 7:00 a.m. on the day scheduled collection, if it is to be
picked up."
Section 5. That Section 25 of Ordinance No. 95 -35, as amended, is amended by
amending Section 25 to read as follows:
"SECTION 25 — ACCEPTANCE OF AGREEMENT
That the COMPANY shall have ten (10) days from and after the passage and
approval of this Ordinance to file its written acceptance thereof with the City
Secretary, and after such acceptance is filed, this Ordinance shall take effect
and be in force from and after November 1, 2012."
Section 6. That Appendix B of Ordinance No. 95 -35, as amended, is amended to
establish that the method of determining annual increases in the Consumer Price Index
ORD. NO. 2
(CPI) and Landfill Gate Rate (Rate) will compare the change in the CPI or Rate over 12
consecutive months from March of the prior year to March of the current year.
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 polo
contendere, or dismissal.
Section 8. That 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. That 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, 2012.
APPROVED:
ATTEST-
ORD. NO. 3
APPROVED AS TO FORM:
ORD. NO.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS AMENDING THE GRAPEVINE CODE
OF ORDINANCES, CHAPTER 25 UTILITIES AND
SERVICES, ARTICLE III SOLID WASTE DISPOSAL;
PROVIDING A SEVERABILITY CLAUSE; DECLARING AN
EMERGENCY AND PROVIDING AN EFFECTIVE DATE
WHEREAS, on June 1, 1995, by passage of Ordinance No. 95 -35 the City of
Grapevine, Texas granted Laidlaw Waste Systems, Inc. a franchise agreement to provide
for solid waste services for both residential and commercial customers for a ten (10) year
period; and
WHEREAS, on September 18, 2001, by passage of Ordinance No. 2001 -67 the City
of Grapevine, Texas granted Laidlaw Waste Systems, Inc. an extension of the franchise
agreement to provide for solid waste services for both residential and commercial
customers for one (1) additional five (5) year period, commencing on June 1, 2005; and
WHEREAS, Laidlaw Waste Systems, Inc. was renamed Trinity Waste Services,
Inc.; and
WHEREAS, Trinity Waste Services, Inc. was renamed, Allied Waste Services Inc.;
and
WHEREAS, Allied Waste Services Inc. was renamed, Allied Waste Services of Fort
Worth, LLC.; and
WHEREAS, on July 20, 2010, by passage of Ordinance No. 2010 -30 the City of
Grapevine, Texas granted Allied Waste Services of Fort Worth, LLC. an extension of the
franchise agreement to provide for solid waste services for both residential and commercial
customers for one (1) additional five (5) year period, commencing on August 1, 2010; and
WHEREAS, the City Council desires to improve residential recycle service by having
Allied Waste Services of Fort Worth LLC. provide roll -cart recycle containers; and
WHEREAS, Allied Waste Services of Fort Worth LLC., has requested a rate
adjustment to be effective on November 1, 2012; and
WHEREAS, the City Council desires to increase the rates for collecting and
removing garbage, recycling, refuse and trash and other solid waste by amending Chapter
25 Utilities and Services, Article III, Solid Waste Disposal, Section 25 -97 of the Code of
Ordinances of the City of Grapevine, Texas.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS:
Section 1. That the above premises are found to be true and correct and are
incorporated into the body of this ordinance as if copied in their entirety.
Section 2. That Chapter 25 Utilities and Services, Article III, Solid Waste
Disposal, Section 25 -90 relative to definitions is hereby amended by amending the
following definition to read:
"RECYCLING CONTAINERS: A sixty -five (65) gallon or ninety -five (95) gallon
container for use by residential customers for curbside recyclable materials
collection by COMPANY."
Section 3. That Chapter 25 Utilities and Services, Article III, Solid Waste
Disposal, is hereby amended by amending Section 25 -97(a) to read as follows:
"Sec. 25 -97. Service rates - schedules.
(a) Any houses, buildings or premises used for residential purposes, shall
have their garbage, trash and refuse removed at a monthly charge where
such collection and removal is not required in excess of twice each week,
and have its recyclable materials removed once per week with such rates
established annually by ordinance.
` Monthly Charge
Single- family residential ............ ............................... .........................$12.22
Single- family residence without city water service ..... ..........................12.22
Duplex..................................................... ............................... .............24.44
Multifamily, per unit (without dumpster container ) ............................. 12.22"
Section 4. If any section, article, paragraph, sentence, clause, phrase or word in
this ordinance, or application thereto any person or circumstances 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; and the City Council hereby declares it
would have passed such remaining portions of the ordinance despite such invalidity, which
remaining portions shall remain in full force and effect.
Section 5. 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 inhabitants of the City of Grapevine, Texas, creates an
emergency for the immediate preservation of the public business, property, health, safety
and general welfare of the public which requires that this ordinance shall become effective
from and after the date of its passage, and it is accordingly so ordained.
Section 6. That the effective date of this rate adjustment will be November 1,
2012.
ORD. NO. 2
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 18th day of September, 2012.
APPROVED:
ATTEST`
APPROVED AS TO FORM:
ORD. NO. 3