R-2022-326 - 10/13/2022 RESOLUTION NO.R-2022-326
WHEREAS, the City of Round Rock ("City") and Central Texas Refuse, LLC ("Contractor")
entered into an Amended and Restated Refuse Collection Contract (the "Contract") on November 4,
2021; and
WHEREAS, Section 20.1, "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
September 21, 2022, for a rate adjustment, a copy of such petition being Exhibit "A" to the
Amendment to Residential Services Rate with Central Texas Refuse, LLC; and
WHEREAS, the City and Contractor agree that commencing November 1, 2022, the
Residential Services Rate shall be amended as set forth in the Amendment to Residential Services Rate
with Central Texas Refuse,LLC;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, LLC (Effective November 1, 2022), 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.
0112.20222;4874-0876.4214
RESOLVED this 13th day of October, 2022.
A /,X//
CRAIG RG Mayor
City of Round ock,Texas
ATTEST:
MEAGAN SPI S, City lerk
2
EXHIBIT
„A»
AMENDMENT
TO RESIDENTIAL SERVICES RATE
WITH CENTRAL TEXAS REFUSE,LLC
(Effective November 1,2022)
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,
LLC (the"Contractor").
WHEREAS, on November 4, 2021, the City and Contractor entered into an Amended
and Restated Refuse Collection Contract pursuant to Resolution No. R-2021-302 (hereinafter the
"Agreement"); and
WHEREAS, Section 20.1, "Residential Services Rate," of the Agreement sets forth a
formula for calculating the Residential Services Rate; and
WHEREAS, pursuant to Section 21 of the Agreement, Contractor petitioned the City on
September 21, 2022, for a rate adjustment, a copy of such petition being attached hereto as
Exhibit"A," incorporated herein by reference for all purposes; and
WHEREAS, the parties agree that commencing November 1, 2022, the Residential
Services Rate shall be amended as set forth herein and as set forth in the attached hereto as
Exhibit"B," incorporated herein by reference for all purposes,
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 20.1. "Residential Services Rate,"the
Residential Services Rate is agreed to be$17.35, and is calculated as follows:
Fuel Component:
(i) The previous twelve(12) month average fuel consumption equals 16,577 gallons;
(ii) The Cost of Fuel [DEO Diesel Fuel Price index($5.49) less a 5%($0.27) discount
for volume purchases] per gallon equals $5.22;
(iii) The total number of residential service units is 49,808.
Formula: (16,577 gallons)X($5.22 per gallon)/(49,808 units)equals$1.74.
4868-5426-5140/ss2
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 4,876;
(ii) The actual disposal cost per ton of Municipal Solid Waste equals $38.42/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 895;
(iv) The actual disposal/delivery cost per ton of Recyclable Material equals
$3 8.42/ton;
(v) The total number of Residential Service Units is 49,808.
Formula: (4,876 tons)X(538.42/ton) + (895 tons)X($38.42/ton)/(49,808 units)
equals $4.45.
Operations,Overhead and Profit Component:
The Operations, Overhead and Profit Component is $11.16.
Total Residential Services Rate:
(i) Fuel Component $ 1.74
(ii) Disposal Component $4.45
(iii) Operations, Overhead and Profit Component $11.16
Total Residential Services Rate $17.35
2. Upon execution of this Agreement, the City agrees to remit a one-time fuel recovery
payment to Contractor in the amount of Seventy-Nine Thousand Seven Hundred Sixty-
Five and No/100 Dollars ($79,765.00).
3. This Rate Amendment only amends the Residential Services Rate and except as amended
hereby, the Agreement remains 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 Central Texas Refuse, Inc. on the dates indicated.
CITY: CENTRAL TEXAS REFUSE,LLC:
City of Round Rock
CRAIG MORGAN, Mayor
Name:
Date:
Title:
ATTEST: Date:
MEAGAN SPINKS, City Clerk
Approved as to form:
STEPHANIE L. SANDRE, City Attorney
3
Exhibit "A"
September 21, 2022
Michael Thane
Director of Utilities and Environmental Services
City of Round Rock
2008 Enterprise Drive
Round Rock,TX 78664
Michael,
The entire Central Texas Refuse family values the ever-evolving partnership between the City of
Round Rock and Central Texas Refuse and we look forward to providing exceptional service to
the City, its residents, and businesses for many years to come.
We respectfully request a 5.99% increase in the residential service rate from $16.37 to $17.35,
effective November 1, 2022.
Additionally, as you are aware, there have been many recent changes in our economy which
have significantly increased the cost of providing service. One such significant increase has
been the cost of diesel fuel. Due to the tremendous increase in the cost of diesel fuel, we
respectfully request a one-time adjustment in accordance with Section 21.3 of the Current and
Amended and Restated Refuse Collection Contract of$79,765.00. This amount is calculated
based on the increased diesel fuel costs, in excess of$5.00/gallon from March 2022 through
August 2022, as shown on the attached fuel calculations sheet.
Thank you for your consideration in this matter.
Respectfully
Tammy ou'rSg"'
Director of Public Sector Services and Community Relations
P.O.Box 18685 nfffce 512-243-2833
Austin,TX 78760 fex 512-243-2283
vPn,w.centraltexa5refu�ecam