Title
Consider a resolution authorizing the Mayor to execute an Amendment to Residential Services Rate with Central Texas Refuse, LLC.
Body
The City currently has a Refuse Collection Contract with Central Texas Refuse (CTR) to perform solid waste and recycling collection and disposal services. The City has successfully worked with CTR, formerly known as Round Rock Refuse, since 1987, for our residential services and continue to receive high ratings in this area from our citizens during the biannual City survey.
Once a year, CTR may petition to the City for reasonable adjustments to the Residential Services Rate based on increases in fuel, landfill, and/or Operations/Overhead costs. In a letter dated September 21, 2022, CTR petitioned for an increase in the Residential Services Rate from $16.37 to $17.35 per month to account for increases in all three components of the rate. This proposed rate would still be a very competitive Residential Services Rate as compared to other cities in the area. If this contract amendment and the Solid Waste Ordinance are approved by Council, then the proposed new rate would go into effect with bills issued after November 10, 2022.
The contract also allows for CTR to petition to the City for an adjustment in the event of a significant or unusual increase in costs beyond the control of CTR. Over the past year and half, CTR has experienced significant fuel cost increases. Therefore, CTR is also petitioning for a one-time fuel recovery payment of $79,765. This amount was negotiated with City staff and is half of the original amount requested by CTR for the past six months of excessive fuel costs.
Cost: $79,765
Source of Funds: General Fund