HomeMy WebLinkAboutItem 08 - Sollid Waste Franchise AgreementMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: AUGUST 19, 2014
SUBJECT: SOLID WASTE FRANCHISE AGREEMENT RENEWAL AND
RATE INCREASE AMENDMENT
RECOMMENDATION:
City Council consider adopting an ordinance amending Chapter 25, Utilities and
Services, Article III, Solid Waste Disposal, Section 25-97, Service Rates — Schedules to
reflect adjustments to the commercial and residential solid waste and recycling collection
rates, and take any necessary action.
BACKGROUND:
City Council granted Republic Services (dba Allied Waste Services of Fort Worth, LLC.)
and its predecessor companies a franchise agreement (Ordinance No. 95-35) to provide
solid waste and recycling services for both residential and commercial customers in
Grapevine on May 2, 1995.
Section 12 - Item 1 of the Franchise Agreement provides for the establishment of
residential and commercial rates on an annual basis prior to October 1. Republic has
requested a rate adjustment effective October 1, 2014.
The rate adjustment calculation is a fixed component of the agreement for both
commercial and residential collection. The base rate is divided into operational and
disposal components. The operational component represents 70% and the disposal
component represents 30% of the base rate. The operational component is adjusted
based on the Consumer Price Index (CPI -U) for the most recent 12 month period (March
2013 — March 2014). The disposal component is adjusted by the average increase in
disposal cost of five local landfill facilities.
The residential rate adjustment calculation is as follows:
CPI -U: 70% x 1.04% = 0.73% increase
Disposal Average: 30% x 5.46% = 1.66% increase
Total Rate Increase 2.39% increase
The total rate increase request is 2.39% for the residential and commercial solid waste
and 0.73% for recycling collection. The percentage increase represents a $0.25 monthly
increase for residential service from $12.51 to $12.76.
Staff recommends approval of the rate increase.
JSL/ds
REPUBLIC
SERVICES
July 29, 2014
Mr. Stan Laster
Director of Public Works
200 S. Main Street
Grapevine, Texas 76051
Re: Annual Rate Increase 2014
Dear Stan,
Allied Waste/Republic Services would like to extend a Thank You for your business and appreciates the
opportunity to service the City of Grapevine.
Per our contract, Allied Waste/Republic Services respectfully submits for your review a new rate schedule
to become effective October 1, 2014. The contract allows for an annual rate adjustment calculation with
supporting CPI and landfill data. These rate calculations are shown on Exhibit "A" with attached Bureau of
Labor Statistics Data and Landfill Rate verified by both parties.
• CPI — Contract allows for an annual rate increase to be requested using the last 12 months CPI —
March 2013 — March 2014, per the attached documentation the 0.73% increase requested for the
past 12 months is calculated at 70% of the CPI.
• Landfill Increase — Contract language specifies five landfills to be utilized in configuring the landfill
disposal increase percentage to be requested, the landfills have been contacted and 4 of the 5
have increased rates during the specified timeframe and the overall percentage increase is
1.66%.
• Total requested increase for 2014 — 2.39%
Our request for the 2.39% is for residential trash, commercial and industrial with an increase to residential
recycling of .73%. Once you have had an opportunity to review this material, I will be happy to meet with
you to go over the contents in greater detail, if necessary.
Please do not hesitate to contact me at my office 817.953.7224 or my cell 817.657.3459 if you need any
additional information.
Sincerely,
77'aw#e&
Jeri Harwell
Municipal Services Manager
cc: Dewey Stoffels, Environmental Services
6100 Elliott Reeder Road
Fort Worth, TX 76117
817.332.7301 /FAX 817.831.2020
www.republicservices.com
CITY OF GRAPEVINE
EXHIBIT "A"
CPI- INCREASE - CUURA316SAO
Consumer Price Index - All Urban Consumers
I
TOTAL INCREASE PROPOSED: 2.39%
All Items
March, 2014 Index
218.715
March, 2013, Index
216.465
Change
2.25
% Change
1.04%
Cost Factor
70%
Net Increase
0.73%
I
TOTAL INCREASE PROPOSED: 2.39%
LANDFILL INCREASE
Gate Rate
March
2014
2013
$ Change
WMI Lewisville
$
9.50
$ 9.20
$
0.30
Cit of Dallas McCommas
$
21.50
$ 21.50
$
-
Turkey Creek
$
40.00
$ 33.02
$
6.98
Farmers Branch -Camelot
$
29.62
$ 28.90
$
0.72
Arlington Landfill
$
52.00
$ 52.00
$
-
$
152.62
$ 144.62
$
8.00
%Change
5.53%
Cost Factor
30%
1.66%
I
TOTAL INCREASE PROPOSED: 2.39%
TOTAL INCREASE PROPOSED: 2.39%
ORDINANCE NO. SDLI!) WANE
R (kTC .aV5TA16A1T"
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,
SECTION 25-97 SERVICE RATES --SCHEDULES;
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, 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, Allied Waste Services of Fort Worth, LLC. is a subsidiary of Republic
Services; 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, on July 20, 2010, by passage of Ordinance No. 2010-30 the City of
Grapevine, Texas granted Republic Services 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, on September 18, 2012, by passage of Ordinance No. 2012-44 the City
of Grapevine, Texas extended the term of the franchise five (5) years commencing on
November 1, 2012; and granted Republic Services an automatic renewal of the franchise
agreement for one (1) additional five (5) year period, commencing on November 1, 2017;
and
WHEREAS, Section 12, Item 1 of the franchise agreement provides for the
establishment of residential and commercial rates on an annual basis prior to October 1 of
each year; and
WHEREAS, Republic Services has requested a rate adjustment to be effective on
October 1, 2014.
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, is hereby amended by amending Section 25-97 in its entirety to read as follows:
"Sec. 25-97. Service rates --Schedules.
(a) Any houses, buildings or premises used for residential purposes, shall have their
garbage and trash removed at a monthly charge where such collection and removal
is not required in excess of twice each week, have their recyclable materials
removed once per week, have their brush and yard waste removed once per week,
and have their bulky wastes removed once every other week with such rates
established annually by ordinance.
Monthly Charge
Single-family residential..................................................................$12.76
Single-family residence without city water service ........................... 12.76
Duplex.............................................................................................. 25.52
Multifamily, per unit (without dumpster container) ........................... 12.76"
(b) Collecting and removing of garbage, refuse and trash from houses, buildings and
premises used for commercial and business purposes (apartment complexes with
three or more units and mobile home parks are defined as commercial units) shall be
determined by the number of times each week that collection and removal of
garbage, refuse and trash is required, plus the amount of garbage, refuse and trash
collected and removed. The rates are established annually by ordinance.
(1) Container rates:
a. Two -yard containers:
ORD. NO. 2
1 Dump per week..................................................................$ 64.61
2 Dumps per week
..................................................................108.89
3 Dumps per week
..................................................................145.84
4 Dumps per week
..................................................................205.07
5 Dumps per week
..................................................................266.25
6 Dumps per week
..................................................................307.97
Extrapickup..............................................................................22.08
b. Three -yard containers:
1 Dump per week..................................................................$ 73.45
2 Dumps per week..................................................................121.26
3 Dumps per week..................................................................173.98
4 Dumps per week..................................................................231.44
5 Dumps per week..................................................................290.60
6 Dumps per week..................................................................329.73
Extrapickup..............................................................................25.25
c. Four -yard containers:
1 Dump per week..................................................................$ 93.21
2 Dumps per week..................................................................149.79
3 Dumps per week..................................................................209.75
4 Dumps per week..................................................................267.06
3 Dumps per week..................................................................333.99
5 Dumps per week..................................................................325.91
4 Dumps per week..................................................................426.94
6 Dumps per week..................................................................356.61
5 Dumps per week..................................................................521.25
Extrapickup..............................................................................28.42
d. Six-yard containers:
1 Dump per week................................................................$ 110.89
2 Dumps per week..................................................................187.02
3 Dumps per week..................................................................262.70
4 Dumps per week..................................................................337.83
5 Dumps per week..................................................................423.62
6 Dumps per week..................................................................490.47
7 Dumps per week..................................................................572.21
Extrapickup..............................................................................31.56
e. Eight -yard containers:
1 Dump per week................................................................$
138.18
2 Dumps per week..................................................................233.37
3 Dumps per week..................................................................333.99
4 Dumps per week..................................................................426.94
5 Dumps per week..................................................................521.25
ORD. NO. 3
6 Dumps per week..................................................................593.97
7 Dumps per week..................................................................692.97
Extrapickup..............................................................................34.71
f. Roll -Cart Containers (Main Street):
2 Dumps per week................................................................$ 25.96
ExtraRoll-Carts.........................................................................5.46
(2) Recycling Containers:
a. Cardboard only containers:
1 Dump per week (not to exceed) ..........................................$ 37.38
b. Roll -Cart Recycle containers:
1 Dump per week (not to exceed) ..........................................$ 15.86
ExtraRoll-Carts...................................................................... $ 5.30
c. Six-yard recycle containers:
1 Dump per week.................................................................$ 67.89
d. Eight -yard recycle containers:
1 Dump per week.................................................................$ 78.34
(3) Casters:
(4) Locks:
Gates:
permonth...............................................................................$ 6.83
perlift...................................................................................... $ 1.20
perlift......................................................................................$ 1.20
(5) Commercial hand -load, two dumps per week: $27.06 per month for a
maximum for four 30 -gallon containers. If more than four 30 -gallon
containers are necessary for service, then customer will use commercial
garbage container(s).
ORD. NO. 4
(6) Open top construction and demolition containers:
a. Delivery fee............................................................................... $ 102.26
b. Daily rental fee..............................................................................$ 4.34
c. Haul...........................................................................................$ 185.49
d. Disposal:
Loose..................................................................... $ 6.15/cubic yard
Compacted............................................................ $ 8.66/cubic yard
e. Deposit......................................................................................$ 298.56
f. Billing for open -top construction containers will be performed by the
contractor. The City will establish such rates annually by ordinance.
(c) Collecting and removing of recyclables from multifamily (apartment) complexes will
be performed by contractor at least once each week. Every apartment complex will
be assessed a per unit monthly fee with such rates established annually by
ordinance.
Monthly apartment recycling fee ........................................................$0.99
(d) Rates for any service required other than the above described services will be
determined by the city.
(e) The minimum service to be rendered shall be once each week. Should any place of
business not be specifically designated by name, such error or omission will not
relieve the owner, occupant, tenant or lessee of the binding effect of this article, but
the same charge shall be made as that entered against a business of a like or similar
nature.
(f) Mobile home parks may request curbside service for each individual housing unit for
the collection of garbage, trash, yard waste and recyclables only. Such garbage,
trash, yard waste and recyclables must be generated by tenant. The fee for such
service will be the normal residential rate established annually by ordinance per the
number of units in the park. The mobile home park must maintain commercial
service for its office, management and other operations and for the collection of all
brush and bulky waste as further defined by Article III, section 25-90, Grapevine
Code of Ordinances."
Section 5. That 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
ORD. NO. 5
would have passed such remaining portions of the ordinance despite such invalidity, which
remaining portions shall remain in full force and effect.
Section 6. 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 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 7. That the effective date of this rate adjustment will be October 1, 2014.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 19th day of August, 2014.
APPROVED:
ATTEST:
APPROVED AS TO FORM:
ORD. NO. 6