R-11-09-22-11A1 - 9/22/2011 RESOLUTION NO. R-11-09-22-11A1
WHEREAS, the City of Round Rock, ("City") and Round Rock Refuse, Inc., ("Contractor")
entered into that one certain Amended and Restated Refuse Collection Contract, (the "Contract")
which was dated October 14, 2010; and
WHEREAS, Section 21 of the Contract provides that from time to time the Contractor may
petition the City for reasonable adjustments to the Residential Services Rate based on increases in the
Fuel Component, the Disposal Cost Component, and/or the Operations, Overhead and Profit
Component caused by inflation and other factors listed in said Section 21; and
WHEREAS, Contractor has petitioned the City for such a rate adjustment, a copy of such
petition being attached hereto as Exhibit A; and
WHEREAS, the City has reviewed the petition and has determined that the request is
reasonable and that the Contractor is entitled to a reasonable adjustment to the Residential Services
Rate;Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
The City Council has determined that the Contractor's petition for an adjustment to the
Residential Services Rate is reasonable and approves an adjustment as set for in Exhibit B, attached
hereto, which adjustment shall take effect on the 1 st day of October, 2011.
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.
O:\wdox\SCClnts\0112\1 IMMUNICIPAU00232752DOC/sIs
RESOLVED this 22nd day of September, 2011.
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ALAN MCGRAW, Mayor
City of Round Rock,Texas
ATTEST:
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SARA L. WHITE, City Secretary
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Mr. Michael Thane
Director of Utilities
City of Round Rock, TX
8/22/2011
Dear Mr. Thane,
Round Rock Refuse, Inc., is approaching the end of the two year fixed rate portion of a five year
contract with Sunset Farms Landfill. Beginning October 1 st, 2011 Sunset Farms rates will reflect a 5%
adjustment.
Therefore, it will become necessary for Round Rock Refuse to petition the City for a proposed rate
increase based on the landfill and fuel components of our contract.
Please see the attached worksheet that reflects a proposed 4.07% adjustment.
Thank you for your attention to this matter. I look forward to hearing from you soon.
Sincerely,
Ralph Rocco
Round Rock Refuse
Round Rock Residential Rate Breakdown
Landfill:
Average Monthly Tonnage 35686
Disposal rate per ton $2536
Total Number of Homes 289097
Formula: (Avg. Monthly Tonnage x Disposal rate per ton)/Total number of homes
(3,686 x$25.36)/28,097= $3.32
Fuel:
avg. monthly diesel fuel usage(gallons) 85062
Avg.price per gallon* $3.81
volume fuel discount 5.0%
Total Number of Homes 289097
Formula: (Avg. fuel used x(avg.price per gallon x volume discount))/Total number
of homes
(8,062 x(3.81 x 95%))/28,097= $1.04
Summary:
Landfill $332
Fuel $1.04
Residual $9.72
$14.08
* "avg.price per gallon" figure is the actual DOE price per gallon as of 08/15/2011
EXn tt3tfi
11 AM
The adjusted Residential Services Rate effective the 1st day of October, 2011 is as follows:
1. Fuel Component of the Residential Services Rate
(i) The previous twelve month average fuel consumption equals 8,062 gallons
(ii) The Cost of Fuel per gallon equals $3.81 less 5% volume discount for a total of$3.62
(iii) The total number of Residential Service Units is 28,097.
Formula: (8,062 gallons) X($3.62 per gallon)/(28,0971 units) equals $1.04
Therefore the Fuel Component of the Residential Services Rate is$1.04.
2. Disposal Cost Component of the Residential Services Rate
(i) The total previous twelve month average number of tons equals 3,686
(ii) The actual disposal cost per ton of Municipal Solid Waste equals $25.36/ton
(iii) The total number of Residential Service units is 28,097
Formula: (3,686 tons) X(25.36/ton)/28,097 units) equals $3.32.
Therefore the Disposal Cost Component of the Residential Services Rate is$3.32.
3. Operations, Overhead and Profit Component
The Operations, Overhead and Profit Component is unchanged as $9.72.
4. Residential Services Rate
In accordance with the foregoing, the Residential Services Rate is adjusted to be $14.08, which is
calculated as follows:
(i) Fuel Component $ 1.04
(ii) Disposal Cost Component $ 3.32
(iii) Operations, Overhead and Profit Component $ 9.72
Total Residential Services Rate $14.08
EXHIBIT
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City Council ^�a Summary Sheet
I ROCK: TEXAS
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PURPOSE.PASSION PROSPERITY.
Agenda Item No. 1lAl
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Consider aresolution approving anadjustment to the residential services rate contained
Agenda Caption: in the Amended and Restated Refuse Collection Contract with Round Rock Refuse.. Inc.
Meek September 22, 2011
Department: Utilities and Environmental Services
Staff Person makingpresentation: Michael ThPE
Utilities Director
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Item Summary:
On August 26, 2010, the City Council approved an amendment to the City Ordinance, regarding the implementation
of a comprehensive solid waste management and recycling program. On October 14, 2010, the City approved an
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Amended and Restated Refuse Collection Contract with Round Rock Refuse as the contractor to perform solid waste
and recycling collection and disposal services for the City. The City has successfully worked with Round Rock Refuse
since 1987.
The contract states that Round Rock Refuse may petition the City for reasonable adjustments to the Residential
Services Ratebased on increases in the Fuel Component., the Disposal Cost Component, and/or Overhead and Profit
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Component. Round Rock Refuse has petitioned for an increase in the fuel component and the disposal cost
component of their nate.
� The City has reviewed the petition and has determined that the request is reasonable and that the Contractor is
entitled to a reasonable adjustment to the Residential Services Rate. The increase is from $13.58 to$14.08 per unit.
/ Cost: N/A
Source m=Funds: N/A
Date of Public Hearing(if required): N/A
Recommended Action: Approval
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