R-09-09-24-11C1 - 9/24/2009RESOLUTION NO. R-09-09-24-11 C 1
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 Fifth
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 Fifth 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 24th day of September, 2009.
ATTEST:
SARA L. WHITE, City Secretary
O:\wdox\SCC1nts\0112\0905\MUNICIPAL\R90924C1.DOC/rmc
yvi.4_____ -
ALAN MCGRAW, Mayor
City of Round Rock, Texas
FIFTH AMENDMENT TO REFUSE COLLECTION CONTRACT
This Fifth Amendment to Refuse Collection Contract
("Amendment") is entered into effective as of September 24th,
2009, 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, the Contract was amended again by "Fourth
Amendment to Refuse Collection Contract" on June 12, 2008; 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:
00171395/jkg
3
EXHIBIT
nAn
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:
$10.36 per unit per month for senior citizen
residential customers.
$11.16 per unit per month for all other residential
customers.
II.
To the extent necessary to effect the terms and provisions
of this Fifth Amendment, the Refuse Collection Contract is
hereby amended. In all other respects, the Refuse Collection
Contract is herby ratified and confirmed.
Contractor:
Round Rock Refuse, Inc. City of Round Rock, Texas
By:
Ralph Rocco, General Manager Alan McGraw, Mayor
2
Attest:
Sara L. White, City Secretary
For City, Approved as to Form:
Stephan L. Sheets, City Attorney
DATE: September 17, 2009
SUBJECT: City Council Meeting — September 24, 2009
ITEM: 11C1. Consider a resolution authorizing the Mayor to execute the Fifth Amendment to
the Refuse Collection Contract with Round Rock Refuse.
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 to Round Rock Refuse is $10.25 per month for regular
customers and a senior rate of $9.45 for those who continue to be grandfathered under the old
program. The change in landfill costs will increase the contract rate by $1.42 per month per customer,
and the decrease in fuel costs will decrease the rate by $.51 per customer. The new result will increase
the contract rate by $.91 per customer.
Therefore, 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 $10.25 per month per residential customer ($9.45 per grandfathered senior
customer) to $11.16 per month per residential customer ($10.36 per grandfathered senior customer).
Funding:
Cost: N/A
Source of funds: N/A
Outside Resources: Round Rock Refuse
- CONTINUED ON NEXT PAIGE -
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. 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
EXECUTED
DOCUMENT
FOLLOWS
FIFTH AMENDMENT TO REFUSE COLLECTION CONTRACT
This Fifth Amendment to Refuse Collection Contract
("Amendment") is entered into effective as of September 24th,
2009, 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,
the Contract was amended again by "Fourth
Amendment to Refuse Collection Contract" on June 12, 2008; 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:
00171395/jkg
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:
$10.36 per unit per month for senior citizen
residential customers.
$11.16 per unit per month for all other residential
customers.
II.
To the extent necessary to effect the terms and provisions
of this Fifth Amendment, the Refuse Collection Contract is
hereby amended. In all other respects, the Refuse Collection
Contract is herby ratified and confirmed.
Contractor:
Round Rock Refuse, Inc.
Ralph Rocco, General Manager
2
City of Round Rock, Texas
By:
Alan McGraw, Mayor
Attest:
Sara L. White, City Secretary
For City, Approved
as
to
Form:
StephL. Sheets, City Attorney