To: Mark R. Hafner, City Manager
From: Lupe Orozco, Administrative Services Manager
Subject:
Title
Consider a resolution approving amendments to Contract No. 20-40 with Community Waste Disposal, of Dallas, Texas; by amending Article 1, Term; to extend contract term to an additional 12 months through August 30, 2026 and Article 22, Remuneration; to allow the change to the Annual Adjustment to exceed the 5% up or down cap on the overall customer rate; for citywide garbage rates for the period September - August 31, 2023; and authorizing the City Manager to execute said amendment on behalf of the City of Keller, Texas.
Action Requested:
Consider a resolution approving an amendment Agreement for Citywide Solid Waste Collection and Recycling Services with Community Waste Disposal (CWD) by amending Article 1, Term to extend contract to an additional 12 months through August 30, 2026 and amending Article 22, Remuneration to allow an 8% increase to the city’s commercial and residential recycle and garbage rate.
Background:
The city’s current agreement with CWD is for a period of five years, beginning September 1, 2020 and terminating on August 31, 2025. The proposed amendment would extend this term to August 30, 2026. All terms and conditions stated in Contract No. 20-40 will remain the same for this proposed agreement extension.
The city’s current franchise agreement with CWD allows for an annual rate adjustment in the third, fourth, and fifth year of the five-year agreement. The first rate adjustment would go into effect on September 1, 2022. All rates charged by Community Waste Disposal (Contractor) are subject to an annual CPI/Fuel/Disposal Cost Adjustment. The agreement provides that annual increases must be limited to no more than 5% on the overall rate to the customer, unless contractor seeks and is given approval by a majority vote of the City Council. CWD presented a market adjustment request to Council at the August 16, 2022 City Council meeting. CWD is requesting to amend the rate by an 8% increase which CWD attributes to increases in CPI, fuel, and labor shortages; they have submitted a market adjustment request letter which is included in the agenda packet.
Financial Impact:
The total residential rate, which includes trash service, recycling, and curbside household hazardous/electronic waste, would increase from $16.99 to $18.37, an increase of $1.38 or 8.1%.
Citizen Input/Board Review:
N/A
Legal Review:
The city attorney has reviewed the proposed Resolution.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Approve the resolution as presented.