Item 9BItem 9B: Approve an amendment to Exhibit A of the contract with Republic Waste Services of Texas to adjust the rates for commercial and industrial customers
Alison Ortowski
Assistant to the City Manager
Background Information – Contract Provisions
March 22, 2007 – original contract signed
Section V(b)
May 1, 2008 – Commercial / Industrial rate increase
80% of Consumer Price Index (CPI)
council approval not needed
“Other Increase”
requires Council approval
Total Increase may not exceed 4%
Requested Increase
Support for CPI adjustment:
Operating labor, tires, maintenance, utilities, disposal and insurance
Items increase annually at rates consistent with CPI index
Support for “Other Increase”:
Diesel Fuel Price increase
48% increase in costs from May 2007 – April 2008
Current vs. Proposed Rates (4% increase)
Commercial Hand Load –
Current: $18.19 / month
Proposed: $18.92 / month
Total Increase: $ .73 / month ($8.76 annually)
Commercial Front Load – Range in Increase
2YD:
Current: $48.95 / month
Proposed: $50.91 / month
Total Increase: $ 1.96 / month (23.52 annually)
8YD:
Current: $542.42 / month
Proposed: $564.12 / month
Total Increase: $ 21.70 / month (260.40 annually)
Current vs. Proposed Rates (4% increase)
Commercial Roll Off – Range in Increase
20YD:
Current: $305.00 / month
Proposed: $317.20 / month
Total Increase: $ 12.20 / month
42YD
Current: $450.00 / month
Proposed: $468.00 / month
Total Increase: $ 18.00 / month
Impact of “Other Increase”
Current Accounts Served
Commercial
Number of accounts – 390
Number of containers - 506
Roll-Off
Number of accounts – 76
Number of containers – 80
Total number of accounts subject to proposed increase - 466
In Summary
Request for increase in accordance with contract provisions
Total increase requested: 4%
Total number of accounts: 466
Questions? Alison Ortowski 817-748-8261
Consumer Price Index (CPI)
The Consumer Price Indexes (CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services.
Eight major CPI groups:
FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, service meals and snacks)
HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)
APPAREL (men's shirts and sweaters, women's dresses, jewelry)
TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)
MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)
RECREATION (televisions, pets and pet products, sports equipment, admissions);
EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);
OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).