Item 4F - MemoItem 4F
Page 1
M E M O R A N D U M
September 3, 2024
To: Alison Ortowski, City Manager
From: Lauren LaNeave, Deputy Director of Public Works
Subject: Consider request for solid waste rate adjustments in
accordance with Community Waste Disposal, LP. contract for
the provision of commercial and residential solid waste and
recycling services.
Action
Requested: Consider request for solid waste rate adjustments in accordance
with Community Waste Disposal, LP. contract for the provision of
commercial and residential solid waste and recycling services.
Background
Information: On August 1, 2023, the City Council approved a non-exclusive
contract and franchise agreement with Community Waste Disposal
(CWD) to engage in the business of collecting and disposing of
acceptable waste, recyclables, and household hazardous waste
within the corporate limits of the City. This five-year contract began
October 1, 2023, and includes a provision for an annual price
adjustment based on the Annual Cost Adjustment Model, which can
be found in Exhibit B of the contract.
The annual cost adjustment model applies to all trash, recycling,
and other related services for residential and commercial customers
to allow CWD to be aligned with current economic conditions. The
adjustments are calculated using a combination of the Consumer
Price Index (CPI) for the Dallas-Fort Worth area less energy, Henry
Hub Natural Gas Spot Prices for compressed natural gas (CNG) fuel
costs, and the Arlington Landfill gate rates for disposal costs. The
weighted distribution of these indices is shown in Table 1 below.
Table 1: CWD Annual Cost Adjustment
Index Front
Load
Roll
Off
Roll Off
Excessive
Weight
Residential
Trash
Residential
Recycle &
HHW
CPI 69% 58% 0% 70% 85%
CNG
Fuel 3% 4% 0% 5% 5%
Disposal 28% 38% 100% 25% 10%
Total 100% 100% 100% 100% 100%
Item 4F
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The index changes for the three indices used for this calculation are
as follows: CPI-U (DFW All Urban - Less Energy) increased by
4.60%, fuel (CNG) decreased 4.10%, and disposal (Arlington
Landfill) increased 5.22%. Table 2 shows the proposed increases to
the current rates when weighted.
Table 2: CWD Calculated Rate Adjustments
Index Front
Load
Roll
Off
Roll Off
Excessive
Weight
Residential
Trash
Residential
Recycle &
HHW
CPI 3.17% 2.67% 0.00% 3.22% 3.91%
CNG
Fuel -0.12% 0.16% 0.00% -0.21% -0.21%
Disposal 1.46% 1.98% 5.22% 1.31% 0.52%
Total 4.51% 4.49% 5.22% 4.32% 4.23%
When applied to the current rates, the total residential increase is
4.28% as shown in Table 3. For commercial customers, the front
load container service will increase by 4.51% and the roll-off will
increase by 4.49%. The increase for commercial front load and roll-
off rates are shown on the rate sheet attached to this memo.
Table 3: CWD Proposed Residential Rate Adjustments
October
2023
October
2024 Increase Percent
Increase
Residential
Rate Total $19.18 $20.00 $0.82 4.28%
Trash/Bulk $13.98 $14.58 $0.60 4.29%
Recycle $4.40 $4.59 $0.19 4.32%
HHW $0.80 $0.83 $0.03 3.75%
Under the terms of the contract, rate adjustments require City
Council approval if exceeding 3%. If exceeding 8%, it will trigger the
extraordinary increase clause of the contract.
If approved, these rates will take effect on October 1, 2024, and be
in effect until September 30, 2025. The rates will be communicated
to commercial and residential customers through the City’s website,
social media, e-blast, and My Southlake News.
Financial
Considerations: An increase in rates will increase the franchise fees received by the
City. The City collects ten percent (10%) of the total monthly dollar
amount collected for residential and commercial / industrial billing.
Item 4F
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Strategic Link: This contract links to the City’s Focus Area of Partnerships &
Volunteerism, and B2 Collaborate with select partners to implement
service solutions.
Citizen Input/
Board Review: The proposed rate adjustments were presented to City Council at
the work session on August 6, 2024, with no additional changes.
Legal Review: N/A
Alternatives: 1. Approve proposed cost adjustment as presented
2. Deny proposed cost adjustment, and direct staff to continue
negotiations with Community Waste Disposal (CWD) to
develop a revised cost adjustment to bring forward at a later
date.
Supporting
Documents: 1. Request for Cost Adjustment from CWD (includes revised rate
sheet)
2. Executed Contract with Exhibits
Staff
Recommendation: Staff recommends approval of Item 4F: Consider request for solid
waste rate adjustments in accordance with Community Waste
Disposal, LP. contract for the provision of commercial and
residential solid waste and recycling services.
Staff Contact: Lauren LaNeave, Deputy Director of Public Works - Administration