03-26-18 Regular Meeting of the La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested: March 26, 2018 Source of Funds: N/A Requested By: Don Pennell Account Number Department: Public Works Amount Budgeted: Report: ___ Resolution: _____ Ordinance: _________ Amount Requested: Exhibit: Extension Request Letter and Current Rates Budgeted Item: YES NO Exhibit: Commercial Solid Waste Agreement Exhibit: Quarterly Franchise Payment Spreadsheet Exhibit: Current Accounts Listing Detail SUMMARY & RECOMMENDATION The five (5) year city-wide commercial solid waste franchise agreement with WCA Waste Corporation ends November 1, 2018. In Section 6 of the contract, there is an option to extend the agreement three (3) years ending October 31, 2021, with mutual agreement of both parties. WCA has requested to extend the agreement the additional three (3) years. WCA has proposed to forego any increases in the 2018 rates in lieu of this contract extension. The do not include the City Franchise Fee of 11%. Originally, these services were bid out in 2013. During the 5-year term of the contract, the cost to customers has risen approximately 3.6 percent due to the CPI adjustments. The below chart provides the increase/decrease history in the commercial rates: Fiscal Year % Change 2011 2012 5.00% 2013 (Bid) -4.44% 2014 0.0198% 2015 - Current 0.0162% Additionally, WCA has committed to a $2,000 per year sponsorship for Household Hazardous Waste Collection events. Over the past five (5) years, staff recalls only two complaints associated with their services: 1) noise from emptying containers too early in the morning, and 2) WCA sanitation truck leaking in a parking lot. Generally, WCA responds and resolves complaints directly; therefore, there may be other instances of service complaints not known to staff. Staff recommends extending the contract with WCA an additional three (3) years through October 31, 2021. Action Required by Council: