R-2019-0098 - 2/14/2019 RESOLUTION NO. R-2019-0098
WHEREAS, the City of Round Rock ("City") and Central Texas Refuse, Inc. dba "Round
Rock Refuse" ("Contractor") entered into a Refuse Collection Contract (the "Contract"), pursuant to
Resolution No. R-2016-3847;and
WHEREAS, Section 20, "Residential Services Rate," of the Contract sets forth a formula for
calculating the Residential Services Rate; and
WHEREAS, pursuant to Section 21 of the Contract, Contractor petitioned the City on January
25, 2019, for a rate adjustment, a copy of such petition being Exhibit "A" to the Amendment to
Residential Services Rate with Central Texas Refuse, Inc.; and
WHEREAS,the City and Contractor agree that the Residential Services Rate shall be amended
as set forth in the Amendment to Residential Services Rate with Central Texas Refuse, Inc.; 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 Rate with Central Texas Refuse,Inc., attached hereto as Exhibit"A".
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.
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RESOLVED this 14th day of February, 2019.
CRAIG ORG , Mayor
City of'Round ock,Texas
ATTEST:
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SARA L. WHITE, City Clerk
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EXHIBIT
"An
AMENDMENT
TO RESIDENTIAL SERVICES RATE
WITH CENTRAL TEXAS REFUSE,INC.
This Amendment to the Residential Services Rate set forth in the Refuse Collection
Contract between the City of Round Rock, Texas and Central Texas Refuse, Inc. (dba `Round
Rock Refuse"), hereinafter called "Rate Amendment," is made by and between the City of
Round Rock, a Texas home-rule municipal corporation (the "City"), and Central Texas Refuse,
Inc.(the"Contractor").
WHEREAS, on November 22, 2016, the City and Contractor entered into a Refuse
Collection Contract pursuant to Resolution No.R-2016-3847(hereinafter the"Contract');and
WHEREAS, Section 20, "Residential Services Rate," of the Contract sets forth a
formula for calculating the Residential Services Rate; and
WHEREAS, pursuant to Section 21 of the Contract, Contractor petitioned the City on
January 25, 2019, for a rate adjustment, a copy of such petition being attached hereto as Exhibit
"A";and
WHEREAS, the parties agree that upon execution of this Rate Amendment, the
Residential Services Rate shall be amended as set forth herein and as set forth in Exhibit `ll,"
attached hereto.
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$16.37, and is calculated as follows:
Fuel Component
(i) The previous twelve(12)month average fuel consumption equals 15,101 gallons;
(ii) The Cost of Fuel [DEO Diesel Fuel Price index($3.00) less a 5%($0.15)discount
for volume purchases] per gallon equals$2.85;
(iii) The total number of residential service units is 30,838.
Formula: (15,101 gallons)X($2.85 per gallon)/(30,838 units)equals$1.40.
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 3,547;
(ii) The actual disposal cost per ton of Municipal Solid Waste equals$32.80/ton;
00415799/m2
(iii) The monthly average of the number of tons of Recyclable Material delivered to
the Recyclable Material Facility over the previous twelve months equals 556;
(iv) The actual disposal/delivery cost per ton of Recyclable Material equals
$32.80/ton;
(v) The total number of Residential Service Units is 30,838.
Formula: (3,547 tons)X($32.80/ton) + (556 tons)X($32.80/ton)/(30,838 units)
equals$4.36.
Operations.Overhead and Profit Component:
The Operations, Overhead and Profit Component is$10.61.
Total Residential Services Rate:
(i) Fuel Component $1.40
(ii) Disposal Component $4.36
(iii) Operations,Overhead and Profit Component $10.61
Total Residential Services Rate $16.37
2. This Rate Amendment only amends the Residential Services Rate and except as amended
hereby,the Contract remains in full force and effect.
[Signatures appear on the following page.]
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IN WITNESS WHEREOF,the City and the Contractor have executed this Amendment to the
Residential Services Rate with Central Texas Refuse, Inc.on the dates indicated.
CITY: CENTRAL TEXAS REFUSE,INC.:
City of Round Rock
CRAIG MORGAN,Mayor
Name:
Date:
Title:
ATTEST: Date:
SARA WHITE, City Clerk
Approved as to form:
STEPHAN L. SHEETS,City Attorney
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CONFIDENTIAL AND PROPRIETARY
January 25,2019
To: Michael Thane
Utilities and Environmental Services Director
City of Round Rock
2008 Enterprise Drive
Round Rock TX 78664
From: Michael E.Lavengco
General Manager
Central Texas Refuse/Round Rock Refuse
RE: Annual Adjustment
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 Rack.
Once again,we are approaching the annual review and adjustment period of our existing contract.
Please see attached worksheets that reflect a proposed 3.2%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!
Sincere[
Michael�.L o
Exhibit "A"
P.O.Box 18685512-243-2833
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.",., Aunm,T%]8]60 e,.512-243-2289
Round Rock Residential Rate Breakdown
Landfill&Recycling: Total Avg Mnthly Disposal
Landfill Recycling
Average Monthly Tonnage 3,547 556 2015-2016 3,566
20162017 3,891
Rate per ton $ 32.80 $ 32.80 2017-2018 4,103
Total Number of Homes 30,838 30,838 Difference 212
Formula:((Avg. Mnthly Tonnage x Landfill rate per ton)+(Avg. Mnthly Tonnage x Recycling rate per ton))/Total number
$ 4.36
Fuel:
avg. monthly diesel fuel usage(gallons) 15,101 Avg.Mnthly Fuel
Avg.price per gallon July 2018 $3.00 2015-2016 15,531
2016-2017 16,016
volume fuel discount 5.0% 2017-2018 15,101
Total Number of Homes 30,838 Difference (915)
Formula:(Avg.fuel used x(avg.price per gallon x volume discount))/Total number of homes
(15501x(3.00x.95))/30615 $1.40
Summary: 2019 2018 %Change
Landfill&Recycling $4.36 $4.35 0.25%
Fuel $1.40 $1.20 16.40%
Residual $10.61 $10.31 2.90% July 2017 to July 2018
$16.37 $15.86
YOY Mange $0.51 3.2%
Exhibit "B"