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HomeMy WebLinkAbout2327 12-13-2022ORDINANCE NO. 2327 AN ORDINANCE GRANTING, EXTENDING, RENEWING, AND AMENDING A FRANCHISE TO COMMUNITY WASTE DISPOSAL, L.P. FOR THE COLLECTION OF RESIDENTIAL AND APARTMENT RECYCLABLES WITHIN THE CITY OF EULESS; PROVIDING THE TERMS AND CONDITIONS THEREOF; PROVIDING A TERMINATION DATE; PROVIDING FOR THE APPROVAL OF RATES TO BE CHARGED FOR SUCH SERVICES DURING THE TERM OF THE FRANCHISE; PROVIDING A TERM OF THE FRANCHISE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Euless has determined that it is in the best interest of the citizens to utilize a qualified professional organization to provide for the collection of residential and apartment recyclables in an efficient, safe, and healthy manner, including but not limited to providing the following services: A. Conducting efficient and economical residential curbside and apartment recycling. B. Creating maximized sanitary and aesthetic living conditions for the citizens of the City of Euless. C. Maintaining positive communications with the City of Euless and its citizens; and D. Collecting and transporting recyclables from residential and apartment units within the City of Euless to a suitable material recovery facility. WHEREAS, the City Council previously approved Ordinance No. 2173 granting a franchise to Community Waste Disposal, L.P., for the collection of residential and apartment recyclables for a term ending on February 28, 2023; and WHEREAS, Community Waste Disposal, L.P. has performed such services for the citizens of Euless in an efficient, economical, and healthy manner and is qualified to continue providing such services, facilities and equipment necessary to fulfill the current and future collection of residential and apartment recyclables in the City; and WHEREAS, the City and Community Waste Disposal, L.P. desire to renew, extend, and amend the current franchise agreement upon the terms and conditions set forth herein; and WHEREAS, it is the intent of the City Council in approving this ordinance to grant a franchise for a five-year term with the ability to renew and extend the franchise for an additional five-year term upon agreement of the City and Community Waste Disposal, L.P. as provided in Section 5.9 of Ordinance No. 2173, as amended, and such renewal and extension is hereby determined by the City Council to be in compliance with the requirements of Article XI, Section 3 of the City Charter. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EULESS, TEXAS: The City of Euless hereby renews, extends, and amends its franchise agreement with Community Waste Disposal, L.P. previously approved in Ordinance No. 2173 granting to Community Waste Disposal, L.P. the license and privilege to use the public streets, easements, and thoroughfares within the corporate limits of the City of Euless for the purpose of collection and disposal of residential and apartment recyclables, subject to the terms and conditions set forth in Ordinance No. 2173, as amended herein, and as allowed by state law. FRANCHISE AGREEMENT FOR THE COLLECTION OF RESIDENTIAL AND APARTMENT RECYCLABLES THIS FRANCHISE AGREEMENT ("Agreement") is entered into by and between the City of Euless, Texas, a home rule municipal corporation located in Tarrant County, Texas, (the "City"), and Community Waste Disposal, L.P. ("Contractor"). In consideration of the following mutual agreements and covenants, the City and Contractor do hereby agree as follows: SECTION 1. TERM Section 5.8 of Ordinance No. 2173 is amended to read as follows: 5.8 Term. This Agreement shall be for a five (5) year period beginning March 1, 2023, and ending five (5) years thereafter. SECTION 2. RATEINCREASE Section 9.5 of Ordinance No. 2173 is amended to read as follows: 9.5 Rate Increase. Contractor will be eligible to receive an increase in Monthly Contractual Rates on March 1, 2024, 2025, 2026, and 2027, as set forth in the schedule attached hereto as Exhibit "B". SECTION 3. RECYCLING SERVICE RATES Exhibit "A" of Ordinance No. 2173 is replaced with Exhibit "A" attached to this ordinance. Ordinance No. 2327, Page 2 of 8 SECTION 4. EFFECT OF AMENDMENT All other terms of Ordinance No. 2173 and the Franchise Agreement approved thereunder shall remain in full force and effect except as specifically amended herein. EXECUTED this 13 day of December 2022, in Tarrant County, Texas. CITY OF EULESS COI By: By: Loretta Getc ell, City Manager SECTION 5. SEVERABILITY CLAUSE 12 It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared invalid or unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such invalid or unconstitutional phrase, clause, sentence, paragraph or section. SECTION 6. PUBLICATION The City Council directs that only the caption of this ordinance be published in accordance with Article XI, Section 3 of the City Charter. SECTION 7. EFFECTIVE DATE This ordinance shall be in full force and effect March 1, 2023. PRESENTED AND GIVEN FIRST READING at a regular meeting of the Euless City Council on the 25 day of October 2022, by a vote of 7 ayes, _o nays, and 0 abstentions. Ordinance No. 2327, Page 3 of 8 PRESENTED AND GIVEN SECOND AND FINAL READING and approved at a regular meeting of the Euless City Council on the 13 day of December-,2022, by a vote of ayes, 0 nays, and 0 abstentions. APPROVED: Linda Martin, Mayo ATTEST: L r'Lltry -Kirr/Sutter, TRMC, CMC, City Secretary APPROVED AS TO FORM: L) lc.CQ-, Wayne K. Olson, City Attorney CERTIFICATION OF PUBLICATION The caption of this ordinance was published in the official newspaper of the City in accordance with Article XI, Section 3 of the City Charter subsequent to the first reading but prior to the second reading on the 27 day of October , 2022 and the 28 day of October , 2022, and subsequent to the second reading but prior to the ordinance taking effect, on the 15 day of December 2022 and the 16 day of December , 2022. i Sutter, TRMC, CMC, City Secretary Ordinance No. 2327, Page 4 of 8 EXHIBIT A CITY OF EULESS RECYCLING SERVICES I March 2023 Net Rate to CWD Residential Collection Residential 65 Gallon Recycling Cart once a week service $4.17 Residential Bags service once a week service $1.97 Residential Bins service once a week service $2.44 Residential Senior Discount -$0.99 Residential Apartment Unit Service $0.57 Ordinance No. 2327, Page 5 of 8 EXHIBIT B Rate Adjustment Model All rates charged by Contractor will be subject to an annual CPI/Fuel/Disposal Cost adjustment. The first cost adjustment ("Annual Adjustment") will be effective March 1, 2024, and subsequent adjustments will be made effective March 1 of each year through the term of the Agreement. The Annual Adjustment will be applicable to all charges for Trash, Recycling, and other services for both residential and commercial services under the Agreement. Rates and fees will be adjusted by Contractor for the second and subsequent Agreement years for the term of the Agreement, based on the indices and methodology as described below. If any index defined herein shall not be determined and published or if any index as it is constituted on the Effective Date of the Agreement (March 1, 2023) is thereafter substantially changed, there shall be substituted for such index another index which is determined and published on a basis substantially similar to the index being replaced as shall be mutually agreed upon by the City and Contractor. The percentage breakdown among the three components of the annual adjustment (CPI, Fuel, Disposal) will vary based on the type of service rendered (System) and can be found on the System Chart below. The Annual Adjustment is not based on service level and will not be unreasonably withheld or denied. CPI (see System Chart for %) The basis for the CPI component of the annual increase will be the increase in the "Consumer Price Index - All Urban Consumers," all items (not seasonally adjusted) less Energy, for the Dallas -Fort Worth, TX Area as published by the U.S. Department of Labor Bureau of Labor Statistics. Contractor has designated a percentage of fees and charges (see System Chart for amount) to be adjusted by the CPI index. For the Annual Adjustment to be effective on the first anniversary of the Effective Date, the Base or previous CPI index will be the most recent index published two (2) months prior to the Effective Date, and the Current CPI Index will be the most recent Index published two (2) months prior to the current year's contract anniversary date. For all subsequent years of the Agreement the Base CPI will be the previous year's "Current Index Value" and the Current CPI Index will be the most recently published Index two (2) months prior to the current year's contract anniversary date. CNG FUEL (see System Chartlor%) The Fuel portion of the Annual Adjustment will be determined using the increase in the Henry Hub Natural Gas Spot Price (Dollars per MMBTU) as published by the Energy Information Administration of the U.S. Department of Energy (https://www.eia.doe.gov/dnav/ng/hist/mgwhhdm.htm). Contractor has designated a percentage of fees and charges (see System Chart for amount) to be adjusted by the fuel index. For the Annual Adjustment to be effective on the first anniversary of the Effective Ordinance No. 2327, Page 6 of 8 Date, the Base or Previous Fuel Index will be the average Henry Hub Natural Gas price per MMBTU for the most recent three (3) month period ending two (2) months prior to the Effective Date. The Current Fuel Index will be Henry Hub Natural Gas price per MMBTU for the three (3) month period ending two (2) months prior to the contract anniversary date. For all subsequent years of the Agreement the Base or Previous Fuel Index will be the previous year's "Current Index Value," and the Current Fuel Index will be the average Henry Hub Natural Gas price per MMBTU for the three month period ending two (2) months prior to the current year's contract anniversary date. DISPOSAL (see System Chart for%) The Disposal portion of the Annual Adjustment will be determined using the increase in the CWD gate rate price for the MCCOMMAS Landfill. Contractor has designated a percentage of fees and charges (see System Chart for amount) to be adjusted by the Disposal rate changes. For the Annual Adjustment to be effective on the first anniversary of the Effective Date, the Base or Previous Disposal Index will be the MCCOMMAS Landfill gate rate effective on June 28, 2022. The Current Disposal Index will be the MCCOMMAS Landfill gate rate in effect ten (10) months from the Effective Date. For all subsequent years of the Agreement the Base or Previous Index value will be the previous year's "Current Index Value," and the Current Disposal Index will be the MCCOMMAS Landfill gate rate in effect one month prior to the current year's contract anniversary date. In the event that the designated landfill closes or is no longer available to CWD, a new Landfill Cost per ton will be calculated utilizing the substituted Landfill's rate per ton, plus any additional costs associated with increased time in/out of the new landfill, and increased travel to the new Landfill. SYSTEM CHART CPI Front Load Trash Roll Off Trash Roll Off Excessive Weight Residential Trash Recycle CNG Fuel 65% 55% 0% 66% 84% Disposal 5% 5% 0% 4% 5% Total 30% 40% 100% 30% 11 % 100% 1 100% 100% 100% 100% Ordinance No. 2327, Page 7 of 8 EXAMPLE (Recycle) Contractor's Index Previous Current Change Index % Applied to Base Fee Percentage (Base) Index in Percentage Annual Cost Adjustment Index Value Index Change Adjustment Indices Value Value Consumer 84% 217.487 220.097 2.610 1.20% 1.01 % Price Index CNG Fuel Cost 5% $2.914 $2.987 $0.073 2.51 % 0.13% Disposal Cost 11 % $20.00 $20.40 $0.40 2.00% 0.22% --------- --------- Annual 100% 1.36% Adjustment Recyclable Materials List- If a sustainable market is no longer available for a recycle commodity, Contractor will inform the City, and have the material removed from the acceptable list. In addition, if the value of any of the recycle commodities falls below zero dollars, Contractor may petition the City to have the item removed from the accepted materials list. As an alternative to removing recycle commodities as described above, Contractor may request a special rate adjustment that would allow Contractor to continue to recycle the materials. Ordinance No. 2327, Page 8 of 8 AFFIDAVIT OF PUBLICATION Account # Order Number Identification Order PO Amount Cols Depth 10663 339710 1 Print Legal Ad-IPL00958920 - IPLOO95892 $3610 1 34 L Attention: Mike Lowry CITY OF EULESS 201 N ECTOR DR EULESS, TX 760393543 ---------------------------------------------------------------------------- CITY OF EULESS ORDINANCE NO.2327 AN ORDINANCE GRANTING, EXTEND- ING, RENEWING, AND AMENDING A FRANCHISE TO COMMUNITY WASTE DISPOSAL, L.P. FOR THE COLLEC- TION OF RESIDENTIAL AND APART- MENT RECYCLABLES WITHIN THE CITY OF EULESS; PROVIDING THE TERMS AND CONDITIONS THEREOF; PROVIDING A TERMINATION DATE; PROVIDNG FOR THE APPROVAL OF RATES TO BE CHARGED FOR SUCH SERVICES DURING THE TERM OF THE FRANCHISE; PROVIDING A TERM OF THE FRANCHISE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. PUBLICATION. The City Council di- rects that only the caption of this or- dinance be published In accordance with Article XI, Section 3 of the City Charter. EFFECTIVE DATE. This ordinance shall be in full force and effect March 1, 2023. PRESENTED AND GIVEN FIRST READING at a regular meeting of the Euless City Council on the 25th day of October, 2022, by a vote of 7 ayes, 0 nays, and 0 abstentions. IPL0095892 Oct 27-28 2022 THE STATE OF TEXAS COUNTY OF TARRANT Before me, a Notary Public in and for said County and State, this day personally appeared Stefani Beard, Bid and Legal Coordinator for the Star - Telegram, published by the Star -Telegram, Inc. at Fort Worth, in Tarrant County, Texas; and who, after being duly sworn, did depose and say that the attached clipping of an advertisement was published in the above named paper on the listed dates: No. of Insertions: 2 Beginning Issue of: 10/27/2022 Ending Issue of: 10/28/2022 Sworn to an su scri e e ore me t is 28t ay o October in the year of 2022 i Notary Public in and for the state of Texas, residing in Dallas County STEF'HANIE HATGHER My Notary IU # 133SU406 Extra charge for lost or duplWe affldavlts. 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R`o�m8v��m98�a��ssQ���9598E�a�5UE O�c ¢FmBNAm'o'�B ZF �S�-C� AFFIDAVIT OF PUBLICATION Account #Order Number Identification Order PO Amount Cols Depth 10663 359648 Print Legal Ad-IPL01021100 - IPL0102110 ORDINANCE NO. 2327 $29.72 1 25 L Mike LowryAttention: CITY OF EULESS 201 N ECTOR DR EULESS, TX 760393543 THE STATE OF TEXAS COUNTY OF TARRANT Before me, a Notary Public in and for said County and State, this day personally appeared Stefani Beard, Bid and Legal Coordinator for the Star- Telegram, published by the Star-Telegram, Inc. at Fort Worth, in Tarrant County, Texas; and who, after being duly sworn, did depose and say that the attached clipping of an advertisement was published in the above named paper on the listed dates: 2 insertion(s) published on: 12/15/22, 12/16/22 Sworn to and subscribed before me this 16th day of December in the year of 2022 Notary Public in and for the state of Texas, residing in Dallas County Extra charge for lost or duplicate affidavits. 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