Item 10BCity of Southlake, Texas
MEMORANDUM
December 28, 2001
To: Billy Campbell, City Manager
From: Pedram Farahnak, P.E., Director of Public Works, ext. 2308
Subject: Renewal of Residential and Commercial refuse collection and recyclable materials
collection with the Trinity Waste Services.
Action Requested: Authorize the City Manager to renew the current residential and commercial
refuse collection and recyclable materials collection contract for an additional
term of 5 years (May 1, 2002 to April 30, 2007).
Background
Information: The term of the current residential and commercial refuse collection and
recyclable materials collection contract begin on May 1, 1997 and it is due for
expiration on April 30, 2002. Section 6.1 of the current contract provides for
renewal for an additional 5-year period.
The City of Southlake has maintained a satisfactory contractual relationship with
the Trinity Waste Services since May 1, 1992. During this period the number of
residential accounts has grown from 2,411 to 6,814 as of October 1, 2001. Trinity
Waste Services has been able to provide these collection services at a very
reasonable cost of $8.75 per month. The collection rate has been increased only
one time by .30 cents per month during the past 10 years.
The Public Works Department staff conducted a survey of the residential and
commercial rates for the DFW area cities near Southlake for service and rate
comparison. The survey indicated that for a comparative service, Southlake had
the second lowest collection rate in the area. The commercial rate survey
indicated that Southlake enjoyed a below average rate for comparative
commercial service.
Trinity Waste Services has demonstrated to the Public Works Department staff
that it has secured long-term contracts for land fill disposal services in the DFW
area. Trinity Waste Services has formally requested the renewal of the contract
for an additional five (5) years as provided by the current contract. As an
indication of the level of interest, Trinity has expressed in writing that no rate
increase will be requested to October of 2003 and any requested increase in the
future will be limited to a cap of 3% over the current rates.
Financial
Consideration: Funds for collection of refuse and recyclables were budgeted in the FY 2001-2002
budget approved by the City Council.
Citizen Input/
Board Review: A review of the number of complaints in FY 2000-2001 indicated a relatively low
number. Council members Patsy Dupre and Ralf Evans were consulted for input
and advice.
Legal Review: The current contract has been reviewed by the City Attorney.
Supporting
Documents: Refuse and Recycling information study will be presented to the Council during
the work session, if requested.
Staff
Recommendation: Authorize the City Manager to renew the current contract for an additional term
of five (5) years and approve the contractor's proposed incentives favorable
terms.
Staff
Contact: Pedram Farahnak, P.E., Director of Public Works, ext. 2308
Valerie Bradley, Assistant to Director of Public Works, ext. 2342
PF/kw
CC: Shana Yelverton, Assistant City Manager
Valerie Bradley, Assistant to the Director of Public Works
Refuse & Recycling Information
2001- 2006 Renewal
Contract
Residential Accounts
8000
7000
0 6000
6212 6495
5000
5186
c4000
4225
y 3000
3166
E 2000
2411
z 1000
0
1990- 1991- 1992- 1993- 1994- 1995- 1996-
1997- 1998- 1999- 2000-
91 92 93 94 95 96 97
98 99 00 01
Year
2
Residential
$9.00
Rate History
$8.90
$8.80
$8.70
$8.60
.75
3
Residential Rate Study
- Average rate $10.68
$18.00
$16.00 $16.25
$16.00
$14.00
$12.00
$9.97
10.00 $8.57 $9.07'
$8.00
$6.00
I
$4.00
$2.00
$0.00
A Go Gi rya of o r
12
Commercial Rate Study
Based on a 4 yard container emptied twice per week
$200.00
Average rate $119.29
$180.00
$160.00
$140.00
$120.00
$100.00
Er
$80.00
$60.00
$40.00
$20.00
$0.00 11
ON
Elm
ON
ON
ON
ON
ON 111111
21 `oo
4 G,z C; OeoaQe Z
\c�
��
F \�cZ$
I i
5
5
Revenue from Commercial &
Residential Accounts
$1,600,000.00
$1,400,000.00
$1,200,000.00
$1,000,000.00
$800,000.00
$600,000.00
$400,000.00
$200,000.00
$0.00
0
❑ Residential 1992-
❑ Commercial 93
1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000-
94 95 96 97 98 99 00 01
0
Contract Review
• Residential collection: take -all service twice per week
(Tues. & Fri.). Loose refuse must be bundled, bagged, or
boxed in a container no larger than 4 ft. in length and 50
lbs. in weight.
• Term of current contract: May 1, 1997 — April 30, 2002.
• Current contract may be renewed for an additional five
year period.
• Recycling material is collected once per week.
7
Incentives to Renew Current Contract
• No rate increase will be requested until after
October 2003.
• All future rate adjustments will not exceed
3%.
• A plan for automated trash collection will be
presented in 6-12 months.
• A plan for green waste collection will be
presented in 6-12 months.
0
Reasons for Recommending Renewal
• 10 year history of good performance.
• Excellent history of cost control.
• Trinity possess long-term landfill disposal
contract close to DFW area.
9