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HomeMy WebLinkAboutOrdinance No. 2024-09 ORDINANCE NO. 2024-09 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS, CONSENTING TO THE RATE ADJUSTMENT REQUESTED BY WASTE CONNECTIONS OF TEXAS, LLC, D/B/A WASTE CONNECTIONS OF TEXAS, TO OFFSET ITS INCREASED COST IN CONNECTION WITH PERFORMING SERVICES UNDER THE FRANCHISE AGREEMENT FOR THE COLLECTION, HAULING, RECYCLING AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS IN THE CITY OF FRIENDSWOOD; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES INCONSISTENT OR IN CONFLICT HEREWITH;PROVIDING FOR SEVERABILITY,PUBLICATION AND AN EFFECTIVE DATE. ****************************************************************************** WHEREAS,on March 4,2022,the City Council authorized on its second and final reading the Franchise Agreement for the Collection, Hauling, Recycling and Disposal of Municipal Solid Waste and Recyclable Materials in the City of Friendswood (the "Franchise Agreement") with Waste Connections of Texas, LLC,d/b/a Waste Connections of Texas ("Waste Connections") for a term of three(3)years,commencing on April 1, 2022; and WHEREAS,the Franchise Agreement provides for two annual adjustments—one to offset Waste Connections' increased cost in connection with performing services under the Franchise Agreement (the "Rate Adjustment") and the other to reflect the cost of fuel, based prescribed formula and the U.S.Energy Administration/Department of Energy published price for Diesel Fuel - Gulf Coast Region(the "Fuel Cost Adjustment"); and WHEREAS, on December 20, 2023, Waste Connections requested the following rate increases: Adjustment adjustment Rate Adjustment 6.7% Fuel Cost Adjustment 0.94% ; and WHEREAS, pursuant to Section 10 of the Franchise Agreement, in order for the Rate Adjustment to take effect,the City Council must approve the same; and if the City fails to consent to the increase after Waste Connections demonstrates that such an increase is necessary to offset its costs,Waste Connections may terminate the Franchise Agreement; and WHEREAS, the City Council believes that Waste Connections has demonstrated that the Rate Adjustment based upon the CPI-U is necessary in order to offset its costs of providing services pursuant to the Franchise Agreement; and WHEREAS,the City Council recognizes that no approval of the Fuel Cost Adjustment is required so long as the same is consistent with the formula prescribed in the Franchise Agreement; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE OF TEXAS: Section 1. The facts and matters set forth in the preamble of this ordinance are hereby found to be true and correct. Section 2. The City Council of the City of Friendswood hereby consents to the Rate Adjustment of 6.7%, as requested by Waste Connections of Texas, LLC, d/b/a Waste Connections of Texas,in order to offset its increased cost in connection with performing services under the Franchise Agreement for the Collection, Hauling, Recycling and Disposal of Municipal Solid Waste and Recyclable Materials in the City of Friendswood. This Rate Adjustment along with the Fuel Cost Adjustment shall be effective for the first billing cycle after April 1, 2024. The rates with these adjustments are reflected in the schedule which is attached as Exhibit"A" and incorporated herein for all intents and purposes. Section 3. All ordinances or parts of ordinances in conflict or inconsistent with this ordinance are hereby expressly repealed. Section 4. In the event any clause,phrase,provision,sentence,or part of this ordinance or the application of the same to any person or circumstance shall for any reason be adjudged invalid or held unconstitutional by a court of competent jurisdiction, it shall not affect, impair, or invalidate this ordinance as a whole or any part or provision hereof other than the part declared to be invalid or unconstitutional; and the City Council of the City of Friendswood, Texas, declares that it would have passed each and every part of the same notwithstanding the omission of any such part thus declared to be invalid or unconstitutional, whether there be one or more parts. Section 5. This ordinance shall take effect immediately from and after its passage on second reading by the City Council of the City of Friendswood, Texas. INTRODUCED,READ,AND PASSED on first reading by the affirmative vote of the City Council of the City of Friendswood this 5th day of February, 2024. IKE F N, Mayor ATT �,T: / • 10 / I '/ OF F RIEN„ 6' LETICIA BRYSCH, Ci -tary V r e `,, lea * ice¢„ v * APPROVED AS TO FO'I : N„,,,,, 5 ,y��0F?E-P KS(5)r/MI5t KAREN L. HORNER, City Attorney 2 INTRODUCED, READ, AND PASSED by the affirmative vote of the City Council of the City of Friendswood on second and final reading this 4th day of March, 2024. F 4 RE•AN, Mayor ATT T: OFFR/FN LE ILIA BRYSCH, City Sip ry -1 O Vh Y f APPROVED AS TO FORM: NET Op-rci, KAREN L. HORNER, City Attorney H:\City Council\Ordinances\2024\02-05-2024\Ordinance-Franchise Rate Increase.docx 3 Exhibit A City of Friendswood Solid Waste Schedule Effective April 2024 Rate Increase of 7.64% 2024 Total Residential Bag-96 gal Cart/18 gal Recycle Bin $17.41 per month Additional 18 gallon recycle bin $8.54 per month Total Residential Bag-96 gal Cart/96 Gal Recycle Cart $18.73 per month Light Commercial Collection lx Week $41.85 per month Light Commercial Collection 2x Week $62.78 per month Commerical Rate Schedule Lifts Per Week Container Size 1 2 3 4 5 6 Extra-Lifts 95 Gal Container $ 41.78 $ 62.67 2 Cubic Yd. $ 102.43 $ 121.07 $ 204.69 $ 286.36 $ 375.64 $ 473.00 $ 19.22 3 Cubic Yd. $ 117.61 $ 154.38 $ 285.82 $ 399.84 $ 524.46 $ 660.43 $ 28.83 4 Cubic Yd. $ 118.07 $ 155.29 $ 287.20 $ 401.67 $ 526.77 $ 663.16 $ 38.43 6 Cubic Yd. $ 133.65 $ 240.98 $ 349.51 $ 459.89 $ 582.47 $ 698.86 $ 57.64 8 Cubic Yd. $ 236.08 $ 364.04 $ 466.04 $ 621.26 $ 793.80 $ 953.71 $ 76.83 Extras Extra Lifts Type of Container Per Extra Container Monthly Cost Size Lift Container w/Casters $ 6.63 95 Gal n/a Containers with Locks or C $ 9.95 2 cubic yds. $ 19.22 Recy Container-6 cubic yt $ 92.87 3 cubic yds. $ 28.83 Recy Container-8 cubic yt $ 112.77 4 cubic yds. $ 38.44 6 cubic yds. $ 57.64 8 cubic yds. $ 76.83