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Item 4CCITY OF SOUTHLAKE J ut n bU MEMORANDUM (November 7, 2014) To: Shana K. Yelverton, City Manager From: Alison D. Ortowski, Assistant City Manager Subject: Item 4C: Approve the amendment of Exhibit A of the Republic Waste Services of Texas, Ltd. contract to allow the addition of a commercial fee for excess additional yardage. Action Requested: City Council approval of Item 4C: Approve the amendment of Exhibit A of the Republic Waste Services of Texas, Ltd. contract to allow the addition of a commercial fee for excess additional yardage. Background Information: On May 7, 2013, the City approved a non-exclusive contract and franchise agreement to Republic Waste Services of Texas, Ltd., to engage in the business of collecting and disposing of acceptable waste, recyclables and construction debris within the corporate limits of the City; which includes solid waste that is generated from commercial properties. The term of the agreement between the City and contractor is for a period of five years beginning October 1, 2013 and terminating September 30, 2018, with an option to renew. The purpose of this item is to seek City Council approval of the addition of a fee to Exhibit A of the contract with Republic Waste Services of Texas, Ltd. Republic has requested the addition of a $12.50 fee per additional yard for commercial customers to be assessed for instances of repeated excess overloading of containers. Their intent with the fee is to encourage customers to `right -size' their container and / or frequency of collection and reduce spillage and additional collections related to undersized containers. As an element of the current contract and franchise agreement, the City Council sets and approves an annual rate schedule with an effective date of October 1 of the given year, with the latest "Exhibit A - Rate Schedule" effective on October 1, 2014. This rate schedule is an inclusive part of the contract and franchise agreement, and cannot be modified or amended without City Council approval. In recent weeks, representatives of Republic Services made it known to the City that they have encountered a number of commercial accounts that have repeated, excessive overloading of J ut n bU existing yardage on the commercial premises. In the attached letter to the City dated November 5, 2014 from Republic Services, the contractor states that in some instances, "businesses consistently over load their dumpsters, which may lead to litter problems, odor problems, and in isolated cases, vector and health issues." As part of the existing agreement between the City and Republic, the contractor works at the request of the customer to identify the appropriate commercial container that affords the capacity to service a customer so as to prevent spillage, unsightly and unsanitary conditions. Further, should such commercial spillage continue to occur due to the inadequate size of the container, the City shall require the commercial customer and Contractor to increase the frequency of collection of the customer's waste, or require the customer to utilize a commercial container with a larger capacity, and Contractor shall be compensated for such additional service. When commercial containers are overloaded, Republic Services incurs additional costs to mitigate the additional waste. As a result, the contractor has requested a modification to the rate schedule of the agreement with the City to allow for an additional yardage fee of $12.50 per yard (Exhibit A — Rate Schedule) to accommodate the additional waste and encourage a customer to `right -size' the container or increase frequency of waste collections. The essential elements of the program and implementation of the fee will include the following: • Contractor's commercial drivers identify locations where dumpsters are consistently overloaded; • Drivers take photographs of the overloaded containers and forward to their supervisor; • Supervisors review the photos and file for future reference; • Commercial customer will be contacted and notified of the ongoing issue; • Reoccurrences of the identified commercial locations will be assessed an additional yardage fee of $12.50 per yard, to be included in the customer's next invoice. Financial Considerations: An adjustment in rates will change 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. J ut n bU Strategic Link: The proposed contract amendment links to the City's Strategy Map: "132 Collaborate with select partners to implement service solutions". Citizen Input/ Board Review: N/A Legal Review: The proposed contract amendment has been reviewed and approved by the City Attorney. Alternatives: 1. Adopt proposed contract amendment as presented, with an effective date of December 1, 2014 2. Adopt modified contract amendment and pursue negotiations with Republic regarding fee 3. City denies approval of proposed contract amendment and seeks alternatives from solid waste service provider Supporting Documents: 1. Proposed contract amendment (Exhibit A — Rate Sheet) for Residential and Commercial Solid Waste Collection 2. Letter of request for Additional Yardage Fee from Republic Services dated November 5, 2014 Staff Recommendation: Staff recommends approval of Item 4C: Approval of the amendment of Exhibit A of the Republic Waste Services of Texas, Ltd. contract to allow the addition of a commercial fee for excess additional yardage. Staff Contact: Alison D. Ortowski, Assistant City Manager J ut n bU EXHIBIT "A" RATE SHEET Contract For Residential and Commercial Solid Waste and Recycling Collection Between The City of Southlake and Republic Waste Services of Texas, Ltd. Excluding Fuel Surcharge (To be assessed based on Fuel Surcharge - Exhibit E) Effective December 1, 2014 RESIDENTIAL RATES Residential Curbside - 2 times per week $ 9.39 Residential Cart Recycling - 1 time per week $ 3.76 Total Residential $13.15 Additional Recycle Cart $ 1.00 per month each Commercial Hand Load - 2 times per week Commercial Recycle Cart Collection Additional recycle carts *Replacement of cart lid *Replacement of cart wheel(s) *Replacement of cart $ 24.32 (4 bag limit per collection) $ 5.00 first cart $ 2.00 each additional cart $ 10.00 $ 10.00 $ 50.00 * Charges for excessive occurrences as determined by Contractor and the City. Brush Chipper Service Brush or Bulk P/U (Excess) COMMERCIAL FRONT LOAD RATES $110.00 per hour (30 minute minimum) $110.00 per hour (30 minute minimum) Frequency of Collection Size 1 x week 2x week 3x week 4x week 5x week 6x week 7x week Extra 2 YD $65.45 $103.61 $141.76 $179.94 $216.27 $254.46 N/A $32.71 3 YD $81.77 $136.32 $192.65 $247.18 $303.53 $358.06 $462.49 $39.98 4 YD $99.96 $165.40 $233.46 $298.09 $365.35 $430.78 $556.43 $47.26 6 YD $152.67 $221.74 $308.96 $398.04 $487.12 $574.35 $779.81 $54.52 8 YD $172.67 $283.55 $394.43 $503.47 $614.35 $725.20 $936.73 $63.62 6 YD Recyc $67.75 $123.18 $157.44 N/A N/A N/A N/A $29.89 8 YD Recyc $80.06 $137.95 $190.92 $252.50 $329.60 $412.00 N/A $39.89 Miscellaneous Commercial Front Load Charges J ut n bU Containers with casters Locks or gates Roll out cont. with casters Locking bar charge Obstruction charge/Return trip Delivery Fee Additional Yardage Fee Burned Container Fees 2 YD $ 53.49 4 YD $ 70.86 8 YD $100.29 COMMERCIAL ROLL OFF RATES $15.38 per month $ 1.47 per lift $25.71 per month $96.43 (installation) $6.38 (monthly fee) $20.06 per trip $50.00 per container $12.50 per yard for excessive overloading 3 YD $ 61.52 6 YD $ 84.23 SIZE TYPE DELIVERY RENTAL PER DAY RATE PER HAUL DEPOSIT 20 YD OPEN $112.91 $5.12 $407.78 $608.00 30 YD OPEN $112.91 $5.12 $447.90 $651.00 40 YD OPEN $112.91 $5.12 $528.10 $738.00 28 YD PACKER NEGO NEGO $568.21 NEGO 30 YD PACKER NEGO NEGO $568.21 NEGO 35 YD PACKER NEGO NEGO $601.64 NEGO 40 YD PACKER NEGO NEGO $601.64 NEGO 42 YD PACKER NEGO NEGO $601.64 NEGO Miscellaneous Roll Off Charges Trip/Dry Run Charge $79.90 Relocate Fee $50.00 Burned Container Fee 20 YD $173.81 30 YD $187.18 40 YD $247.35 Packer $334.26 Late and reinstatement fees for commercial and roll off customers. Late Fees - The greater of $5.00 or 1.5% of customer's monthly invoice. Reinstatement Fee - $35.00 per occurrence for customers who had their service discontinued for non-payment. Jut n bU November 5, 2014 Ms. Alison Ortowski - Assistant Oty Manager Oty of SDuthlake, Texas 1400 M ai n Street, 9aite 460 SDuthlake, TX76092 R-,: Additional Yardage Fee Dear Ms. Ort owski , R-,public 9?rvices has recently implemented a new program in several North Texas cities that allows for an additional fee to be assessed to commercial customers for excessive waste placed in and around their containers. The purpose of the program isto ensure that businesses have the appropriate level of service for the amount of waste being generated at their locations. In some instances, businesses consistently over load their dumpsters, which may lead to litter problems, odor problems, and in isolated cases, vector and health issues. We are requesting a modification to the rate schedule of our agreement with the city to allow for the additional yardage fee of $12.50 per yard. The essential elements of the program are: • Our commercial drivers identify locationswhere dumpsters are consistently overloaded. • Driverstake photographs of the overloaded containers and forward to their supervisor. • Sipervisors review the photos and file for future reference. • O.astomer is contacted and notified of the ongoing issue. • R-,occurrences of the identified locations are assessed the additional yardage fee and included in the customer's next invoice. The current fee implemented in other area cities is $12.50 per additional yard as requested above. In most instances, customers will contact us to arrange an increase their service or seek advice on how to better manage their waste stream. We believe this is an effective tool in eliminating unsightly conditions in the city and improving the overall appearance of the community. Reese feel free to contact me with any questions you may have regarding our request. 9 ncerely, V nce Hrabal Municipal 9?rvi ces Manager Fepubl i c 9?rvi ces