R-08-06-12-10D2 - 6/12/2008RESOLUTION NO. R -08-06-12-10D2
WHEREAS, the City of Round Rock ("City") has previously
entered into a Refuse Collection Contract ("Contract") with Round
Rock Refuse, Inc. ("Contractor"), and has entered into subsequent
amendments, and
WHEREAS, the City and Contractor wish to again amend the
Contract, and
WHEREAS, the City Council now desires to enter into a Fourth
Amendment to Refuse Collection Contract with Round Rock Refuse,
Inc., Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City a Fourth Amendment to Refuse Collection Contract
with Round Rock Refuse, Inc., a copy of same being attached hereto
as Exhibit "A" and incorporated herein for all purposes.
The City Council hereby finds and declares that written notice
of the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this 12th day of June, 2 0,68 .
SARA L. WHITE, City Secretary
O:\WDOX\RESOLUTI\R80612D2.DOC/j kg
ALAN MCGRAW, Mayor
City of Round Rock, Texas
FOURTH AMENDMENT TO REFUSE COLLECTION CONTRACT
EXHIBIT
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This Fourth Amendment to Refuse Collection Contract
("Amendment") is entered into effective as of June 12th, 2008,
by and between the City of Round Rock, Texas ("City") and Round
Rock Refuse, Inc., ("Contractor").
Whereas, that certain referenced Refuse Collection Contract
was executed by City and Contractor on October 1, 1990; and
Whereas, the Contract was amended by "First Amendment to
Refuse Collection Contract" on September 26, 1991; and
Whereas, the Contract was amended again by "Second
Amendment to Refuse Collection Contract" on November 4, 2004;
and
Whereas, the Contract was amended again by "Third Amendment
to Refuse Collection Contract" on October 25, 2007; and
Whereas, it has again become necessary to amend said
Contract with regard to collection rates; and
Whereas, City and Contractor desire to so amend the Refuse
Collection Contract as provided below.
Now, therefore, for and in consideration of the sum of Ten
and No/100 Dollars ($10.00) and other good and valuable
consideration, City and Contractor do hereby modify and amend
the Refuse Collection Contract as follows:
I.
Article 10 is hereby amended to read as follows:
Article 10. Collection Rates
10.01 Collection of Refuse: For collection and
disposal of refuse as required by this Contract, Contractor
shall be paid from amounts actually collected from customers the
following:
00140279.DOC
$9.45 per unit per month for senior citizen
residential customers.
$10.25 per unit per month for all other residential
customers.
10.02 Additional Brush Collection: For Additional
Brush Collection in accordance with the terms of the Brush
Collection Ordinance, the Contractor shall be paid Twenty
Dollars ($20.00) for the first five minutes, and One Dollar
($1.00) per minute or fraction thereof thereafter, per pick-up.
10.03 Contractor's Authority to Petition for Rate
Adjustment: The Contractor may petition the City for rate
adjustments at reasonable times on the basis of changes in its
cost of operations, such as changes in statutes or the cost of
utilizing land fills. Contractor shall be entitled to a fair,
just and reasonable rate in relation to the cost of providing
the service contemplated by this Contract.
10.04: City's Authority to Adjust Rates Based upon
Formula for Fuel Costs: The City may, not more frequently than
semi-annually, adjust rates under this Contract based upon the
following formula:
Contract Rate Adjustment for Fuel Costs = { [current diesel
price per gallon * 950) - $1.86 per gallon] * gallons of
diesel used per month} / number of residential customers
For purposes of this subsection 10.04, the following terms
used in the formula shall have the following meanings:
(a) Current diesel price per gallon shall mean the
projected annual average cost for retail diesel fuel found in
the "Short -Term Energy Outlook" source document published
monthly by the Energy Information Administration, U.S.
Department of Energy;
(b) 95% shall mean the approximate difference between
retail price and the invoice price paid by Round Rock Refuse;
(c) $1.86 per gallon shall mean the benchmark invoice
price paid for diesel fuel by Round Rock Refuse in November
2004.
II.
To the extent necessary to effect the terms and provisions
of this Fourth Amendment, the Refuse Collection Contract is
hereby amended. In all other respects, the Refuse Collection
Contract is herby ratified and confirmed.
2
Contractor:
Round Rock Refuse, Inc.
By:
Ralph Rocco, General Manager
City of Round Rock, Texas
By:
Alan McGraw, Mayor
Attest:
By:
Sara L. White, City Secretary
roved as • Form:
By:
3
L. Sheets, City Attorney
DATE: June 4, 2008
SUBJECT: City Council Meeting — June 12, 2008
ITEM: 10D2. Consider a resolution authorizing the Mayor to execute the Fourth
Amendment to the Refuse Collection Contract with Round Rock Refuse.
Department:
Staff Person:
Engineering and Development Services
Tom Word, P.E., Chief of Public Works Operations
Justification:
The City has received a request from Round Rock Refuse to amend their garbage
collection contract with the City. The garbage collection rate for residential service was last
amended on November 9, 2004. At that time, Round Rock Refuse was paying $1.86 per gallon
for diesel fuel. Diesel fuel has now reached $4.00 per gallon, or an increase of $2.14 per gallon
(115%) above the November 2004 price. The Council is considering raising the residential
garbage collection rate by $0.58 from $12.00 per unit per month to $12.58 per unit per month,
and $11.58 per unit per month for grandfathered senior accounts.
Upon adoption of the new garbage collection rate ordinance, the City's contract with
Round Rock Refuse must be amended to establish a new contract rate. Staff recommends that
the contract rate for monthly residential garbage collection be increased from the current rate
of $9.60 per month per residential customer ($8.80 per grandfathered senior customer) to
$10.06 per month per residential customer ($9.26 per grandfathered senior customer).
Additionally, staff is proposing that Article 10. Collection Rates of the Code of
Ordinances be further amended to provide the City the authority to initiate rate changes in the
future.
Funding:
Cost: N/A
Source of funds: N/A
Outside Resources: Round Rock Refuse
Background Information:
The U.S. Department of Energy (DOE) publishes a report that includes a projected annual
average retail price for diesel fuel. The DOE report published on April 8, 2008 projected that
the average retail price for diesel fuel for 2008 would be $3.62 per gallon. The price that Round
Rock Refuse pays for diesel fuel is approximately 95% of the average retail price posted by the
DOE. The new rate being proposed in this ordinance is based on a diesel fuel price of $3.44,
which is 95% of the average annual retail price for 2008 as projected by the DOE in its April 8,
2008 report.
Public Comment: N/A
Executed
Document
Follows
FOURTH AMENDMENT TO REFUSE COLLECTION CONTRACT
This Fourth Amendment to Refuse Collection Contract
("Amendment") is entered into effective as of June 12th, 2008,
by and between the City of Round Rock, Texas ("City") and Round
Rock Refuse, Inc., ("Contractor").
Whereas, that certain referenced Refuse Collection Contract
was executed by City and Contractor on October 1, 1990; and
Whereas, the Contract was amended by "First Amendment to
Refuse Collection Contract" on September 26, 1991; and
Whereas, the Contract was amended again by "Second
Amendment to Refuse Collection Contract" on November 4, 2004;
and
Whereas, the Contract was amended again by "Third Amendment
to Refuse Collection Contract" on October 25, 2007; and
Whereas, it has again become necessary to amend said
Contract with regard to collection rates; and
Whereas, City and Contractor desire to so amend the Refuse
Collection Contract as provided below.
Now, therefore, for and in consideration of the sum of Ten
and No/100 Dollars ($10.00) and other good and valuable
consideration, City and Contractor do hereby modify and amend
the Refuse Collection Contract as follows:
I.
Article 10 is hereby amended to read as follows:
Article 10. Collection Rates
10.01 Collection of Refuse: For collection and
disposal of refuse as required by this Contract, Contractor
shall be paid from amounts actually collected from customers the
following:
00140279.DOC
12 -U?? -o6 -t2 -t0,
$9.45 per unit per month for senior citizen
residential customers.
$10.25 per unit per month for all other residential
customers.
10.02 Additional Brush Collection: For Additional
Brush Collection in accordance with the terms of the Brush
Collection Ordinance, the Contractor shall be paid Twenty
Dollars ($20.00) for the first five minutes, and One Dollar
($1.00) per minute or fraction thereof thereafter, per pick-up.
10.03 Contractor's Authority to Petition for Rate
Adjustment: The Contractor may petition the City for rate
adjustments at reasonable times on the basis of changes in its
cost of operations, such as changes in statutes or the cost of
utilizing land fills. Contractor shall be entitled to a fair,
just and reasonable rate in relation to the cost of providing
the service contemplated by this Contract.
10.04: City's
Formula forFuel C
semi-annually, adjust
following formula:
Authority to Adjust Rates Based upon
ue Costs
The City may, not more frequently than
rates under this Contract based upon the
Contract Rate Adjustment for Fuel Costs = {[current diesel
price per gallon * 95%) - $1.86 per gallon] * gallons of
diesel used per month} / number of residential customers
For purposes of this subsection 10.04, the following terms
used in the formula shall have the following meanings:
(a) Current diesel price per gallon shall mean the
projected annual average cost for retail diesel fuel found in
the "Short -Term Energy Outlook" source document published
monthly by the Energy Information Administration, U.S.
Department of Energy;
(b) 95% shall mean the approximate difference between
retail price and the invoice price paid by Round Rock Refuse;
(c) $1.86 per gallon shall mean the benchmark invoice
price paid for diesel fuel by Round Rock Refuse in November
2004.
II.
To the extent necessary to effect the terms and provisions
of this Fourth Amendment, the Refuse Collection Contract is
hereby amended. In all other respects, the Refuse Collection
Contract is herby ratified and confirmed.
2
Contractor:
Round Rock Refuse, Inc.
By:
Ralph Rocco, General Manager
City of Round Rock, Texas
By:
Alan McGraw, Mayor
Attest:
By:
Sara L. White, City Secretary
roved as • Form:
By:
3
L. Sheets, City Attorney