R-13-12-05-H10 - 12/5/2013RESOLUTION NO. R -13-12-05-H10
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 as set forth in the Amendment to Residential Services Rate with Round Rock Refuse, Inc.
(Effective January 1, 2014), attached hereto as Exhibit "B"; 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 the Mayor is hereby authorized to execute the Amendment
to Residential Services With Round Rock Refuse, Inc. (Effective January 1, 2014), attached hereto as
Exhibit "B".
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.
0112.1304; 00287459
RESOLVED this 5th day of December, 2013.
COfrY1 k --
ALAN MCGRAW, Mayor
City of Round Rock, Texas
ATTEST:
5y4i/of KAkbf7-
SARA L. WHITE, City Clerk
OUND
OCK
.L \ EF SE
Residential Waste Disposal
July 31, 2013
To: Michael Thane
Director of Utilities
City of Round Rock, TX
From : Michael Lavengco
General Manager
Round Rock Refuse
RE: Annual Adjustment and Petition
First of all, let me Thank You and the City of Round Rock for allowing Round Rock
Refuse the opportunity to be your provider for the past many years.
It has been a pleasure working with you and your TEAM to provide what we believe
to be an exceptional waste and recycling collection service. We also appreciate the
partnership we have forged over the years with the Administration, Staff, and
citizens of Round Rock.
Once again we are approaching the annual review and adjustment period for our
existing contract. Please see the attached worksheet that reflects a proposed 2.34%
adjustment.
Thank you again for your consideration and attention to this matter. I look
forward to our continued working relationship for many years to come!
EXHIBIT
„A„
(512) 255-4980 • FAX (512) 243-2283 • P.O. Box 18684 • Austin, TX 78760 1103 Martin Avenue • Round Rock, TX 78681
Round Rock Residential Rate Breakdown
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AMENDMENT
TO RESIDENTIAL SERVICES RATE
WITH ROUND ROCK REFUSE, INC.
(Effective January 1, 2014)
EXHIBIT
This Amendment to the Residential Services Rate set forth in the Amended and Restated
Refuse Collection Contract ("Amended and Restated Contract") between the City of Round
Rock, Texas and Round Rock Refuse, Inc., hereinafter called "Rate Amendment," is made by
and between the City of Round Rock, a Texas home -rule municipal corporation (the "City"), and
Round Rock Refuse, Inc. (the "Contractor").
WHEREAS, on October 14, 2010, the City and Contractor entered into an Amended and
Restated Contract; and
WHEREAS, Section 20, "Residential Services Rate," of the Amended and Restated
Contract sets forth a formula for calculating the Residential Services Rate; and
WHEREAS, pursuant to Section 21 of the Amended and Restated Contract, Contractor
petitioned the City on July 31, 2013, for a rate adjustment, a copy of such petition being attached
hereto as Exhibit "A"; and
WHEREAS, the parties agree that commencing January 1, 2014, the Residential
Services Rate shall be amended as set forth herein.
NOW THEREFORE, that for and in consideration of the mutual promises contained
herein and other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the City and Contractor agree to amend the Residential Services Rate as
follows:
1. In accordance with the formulas set forth Section 20. "Residential Services Rate, " the
Residential Services Rate is agreed to be $14.23, and is calculated as follows:
Fuel Component:
(i) The previous twelve month average fuel consumption equals 7,673 gallons;
(ii) The Cost of Fuel [DEO Diesel Fuel Price index less a 5% discount for volume
purchases] per gallon equals $3.56;
(iii) The total number of residential service units is 28,743.
Formula: (7,673 gallons) X ($3.56 per gallon) / (28, 743 units) equals $0.95.
Disposal Cost Component:
(i) The monthly average of the number of tons of Municipal Solid Waste delivered to
the Solid Waste Facility in the previous twelve months equals 3,058;
00287377/ss2
(ii) The actual disposal cost per ton of Municipal Solid Waste equals $27.96/ton;
(iii) The monthly average of the number of tons of Recyclable Material delivered to
the Recyclable Material Facility over the previous twelve months equals 487;
(iv) The actual disposal/delivery cost per ton of Recyclable Material equals
$25.36/ton;
(v) The total number of Residential Service Units is 28,743.
Formula: (3,058 tons) X ($27.96/ton) + (487 tons) X ($25.36/ton) / (28,743 units)
equals $3.40.
Operations, Overhead and Profit Component:
The Operations, Overhead and Profit Component is $9.88.
Total Residential Services Rate:
(i) Fuel Component $0.95
(ii) Disposal Component $3.40
(iii) Operations, Overhead and Profit Component $9.88
Total Residential Services Rate $14.23
2. This Rate Amendment only amends the Residential Services Rate and except as amended
hereby, the Amended and Restated Contract and any Amendments to the Amendment
and Restated Contract remain in full force and effect.
[Signatures appear on the following page.]
2
IN WITNESS WHEREOF, the City and the Contractor have executed this Amendment to the
Residential Services Rate with Round Rock Refuse, Inc. on the dates indicated.
CITY: ROUND ROCK REFUSE, INC.:
City of Round Rock
ALAN MCGRAW, Mayor
Date:
ATTEST:
SARA WHITE, City Clerk
Approved as to form:
STEPHAN L. SHEETS, City Attorney
Name:
Title:
Date:
3
'ROUND ROCK, TEXAS
PURPOSE. PSAIOrt PROSPERITC
City of Round Rock
Agenda Item Summary
Agenda Number: H.10
Title: Consider a resolution authorizing the Mayor to execute an Amendment to
Residential Services Rate in the refuse collection contract with Round
Rock Refuse, Inc.
Type: Resolution
Governing Body: City Council
Agenda Date: 12/5/2013
Dept Director: Michael Thane, Director of Utilities and Environmental Services
Cost:
Indexes: Utility Fund
Attachments: Resolution, Exhibit A, Rate Worksheet
Department: Utilities and Environmental Services
Text of Legislative File 13-977
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. The City has
successfully worked with Round Rock Refuse since 1987 for these services.
The contract states that Round Rock Refuse may petition the City for reasonable adjustments to the
Residential Services Rate based on changes in the Fuel Cost Component, Landfill Cost Component,
and/or Operations, Overhead, and Profit Component. Round Rock Refuse has petitioned for an
increase in the Landfill Cost Component and the Operations, Overhead, and Profit Component for
their rate. Their petition calls for a decrease in the Fuel Cost Component.
The City has reviewed the petition and has determined that the request is reasonable and that the
Round Rock Refuse is entitled to a reasonable adjustment to the Residential Services Rate. The
increase is from $13.90 to $14.23 per residential unit per month.
Staff recommends approval.
City of Round Rock Page 1 Printed on 12/3/2013
EXECUTED
ORIGINAL
DOCUMENIS
FOLLOW
AMENDMENT
TO RESIDENTIAL SERVICES RATE
WITH ROUND ROCK REFUSE, INC.
(Effective January 1, 2014)
This Amendment to the Residential Services Rate set forth in the Amended and Restated
Refuse Collection Contract ("Amended and Restated Contract") between the City of Round
Rock, Texas and Round Rock Refuse, Inc., hereinafter called "Rate Amendment," is made by
and between the City of Round Rock, a Texas home -rule municipal corporation (the "City"), and
Round Rock Refuse, Inc. (the "Contractor").
WHEREAS, on October 14, 2010, the City and Contractor entered into an Amended and
Restated Contract; and
WHEREAS, Section 20, "Residential Services Rate," of the Amended and Restated
Contract sets forth a formula for calculating the Residential Services Rate; and
WHEREAS, pursuant to Section 21 of the Amended and Restated Contract, Contractor
petitioned the City on July 31, 2013, for a rate adjustment, a copy of such petition being attached
hereto as Exhibit "A"; and
WHEREAS, the parties agree that commencing January 1, 2014, the Residential
Services Rate shall be amended as set forth herein.
NOW THEREFORE, that for and in consideration of the mutual promises contained
herein and other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the City and Contractor agree to amend the Residential Services Rate as
follows:
1. In accordance with the formulas set forth Section 20. "Residential Services Rate," the
Residential Services Rate is agreed to be $14.23, and is calculated as follows:
Fuel Component:
(i) The previous twelve month average fuel consumption equals 7,673 gallons;
(ii) The Cost of Fuel [DEO Diesel Fuel Price index less a 5% discount for volume
purchases] per gallon equals $3.56;
(iii) The total number of residential service units is 28,743.
Formula: (7,673 gallons) X ($3.56 per gallon) / (28,743 units) equals $0.95.
Disposal Cost Component:
(i)
00287377/ss2
The monthly average of the number of tons of Municipal Solid Waste delivered to
the Solid Waste Facility in the previous twelve months equals 3,058;
'Q--i3-�Z�I�tD
(ii) The actual disposal cost per ton of Municipal Solid Waste equals $27.96/ton;
(iii) The monthly average of the number of tons of Recyclable Material delivered to
the Recyclable Material Facility over the previous twelve months equals 487;
(iv) The actual disposal/delivery cost per ton of Recyclable Material equals
$25.36/ton;
(v) The total number of Residential Service Units is 28,743.
Formula: (3,058 tons) X ($27.96/ton) + (487 tons) X ($25.36/ton) / (28,743 units)
equals $3.40.
Operations, Overhead and Profit Component:
The Operations, Overhead and Profit Component is $9.88.
Total Residential Services Rate:
(i) Fuel Component $0.95
(ii) Disposal Component $3.40
(iii) Operations, Overhead and Profit Component $9.88
Total Residential Services Rate $14.23
2. This Rate Amendment only amends the Residential Services Rate and except as amended
hereby, the Amended and Restated Contract and any Amendments to the Amendment
and Restated Contract remain in full force and effect.
[Signatures appear on the following page.]
2
IN WITNESS WHEREOF, the City and the Contractor have executed this, Amendment to the
Residential Services Rate with Round Rock Refuse, Inc. on the dates indicated.
CITY:
City of Round Rock
ALAN MCGRAW, Mayor
Date:l. I
ATTEST:
SARA WHITE, City Clerk
Appro = . as to orm:
STEPHN L. SHEETS, City Attorney
ROt\ D • 0 V K REFUSE, INC.:
Arn
Tit1- IL .
Date: 116/1-5
13
3
E�UND
OCK
EFUSE
Residential Waste Disposal
July 31, 2013
To: Michael Thane
Director of Utilities
City of Round Rock, TX
From : Michael Lavengco
General Manager
Round Rock Refuse
RE: Annual Adjustment and Petition
First of all, let me Thank You and the City of Round Rock for allowing Round Rock
Refuse the opportunity to be your provider for the past many years.
It has been a pleasure working with you and your TEAM to provide what we believe
to be an exceptional waste and recycling collection service. We also appreciate the
partnership we have forged over the years with the Administration, Staff, and
citizens of Round Rock.
Once again we are approaching the annual review and adjustment period for our
existing contract. Please see the attached worksheet that reflects a proposed 2.34%
adjustment.
Thank you again for your consideration and attention to this matter. I look
forward to our continued working relationship for many years to come!
EXHIBIT "A"
(512) 255-4980 • FAX (512) 243-2283 • P.O. Box 18684 • Austin, TX 78760 1103 Martin Avenue • Round Rock, TX 78681