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G-09-09-24-10B1 - 9/24/2009ORDINANCE NO. ' m--001-7.4 - lost AN ORDINANCE AMENDING CHAPTER 6, SECTION 6.615, CODE OF ORDINANCES (1995 EDITION), CITY OF ROUND ROCK, TEXAS, BY AMENDING THE GARBAGE COLLECTION SERVICE CHARGES; PROVIDING FOR A SAVINGS CLAUSE AND REPEALING CONFLICTING ORDINANCES OR RESOLUTIONS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: I. That Chapter 6, Section 6.615(1)(b), Code of Ordinances (1995 Edition), City of Round Rock is hereby amended to read as follows: (1) Residential (b) The residential sanitation charge for the collection of refuse and for recycling services shall be $13.95 per month. H. A. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed. B. The invalidity of any section or provision of this ordinance shall not invalidate other sections or provisions thereof. C. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Ordinance was adopted was posted and that such meeting was open to the public as required by law at all times during which this Ordinance 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. 0:\wdox\SCClnts\0112\0905\MUNICIPAL\090910B1.DOC/jkg READ and APPROVED on first reading this the C day of Sripie/vviitc/Ne- , 2009. READ, APPROVED and ADOPTED on second reading this the day Y of ATTEST: , 2009. SARA L. WHITE, City Secretary MCGRAW, Mayor City of Round Rock, Texas 2 DATE: September 17, 2009 SUBJECT: City Council Meeting — September 24, 2009 ITEM: *1061. Consider an ordinance amending Garbage Collection Rates for Residential Customers. (Second Reading) Department: Staff Person: Justification: Public Works Operations Tom Word, P.E., Chief of Public Works Operations 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 June 12, 2008. Round Rock Refuse has a contract with Sunset Farms Landfill for disposal of garbage. This contract expires on September 30, 2009. Round Rock Refuse has sought competitive quotes with area landfills for a new contract, and Sunset Farms Landfill is once again the lowest cost option. However, the new rate reflects a 100% increase in cost over the old landfill contract. Thus, we must consider a rate increase at this time to be effective October 1, 2009. At the same time fuel costs have decreased since the last adjustment on June 12, 2008. Our current pre-tax garbage collection rate paid by customers is $12.81 per month for regular customers and a senior rate of $11.81 for those who continue to be grandfathered under the old program. The change in landfill costs will increase the customer rate by $1.78 per month per customer, and the decrease in fuel costs will decrease the rate by $.64 per customer. The new result will increase the customer rate by $1.14 per customer. Staff recommends that the customer rate for monthly residential garbage collection be increased from the current rate of $12.81 per month per residential customer ($11.81 per grandfathered senior customer) to $13.95 per month per residential customer ($12.95 per grandfathered senior customer). 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 August 11, 2009 projected that the average retail price for diesel fuel for 2009 would be $2.46 per gallon. - CONTINUED ON NEXT PAGE - 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 $2.34, which is 95% of the average annual retail price for 2009 as projected by the DOE in its August 11, 2009 report. The new landfill contract provides a rate of $24.00/ton fixed for the next two years. The contract then provides for annual increases of approximately 5% per year for the final three years of the contract. Public Comment: N/A