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REQUEST FOR CITY COUNCIL AGENDA ITEM __ e Requested By: Steve Public Works Agenda Date Requested: Report Resolution xx Ordinance Exhibits: Ordinance Amendment to Contract SUMMARY & RECOMMENDATION The City of La Porte currently has a contract with Hazelwood Enterprises, Inc. of Bay town to dispose of municipal solid waste. The contract term is from October 1, 1986 to October 1, 1989, with the following payment schedule: October 1, 1986 to March 31, 1987 $3.25 per cubic yard garbage $5.50 per cubic yard sludge $3.50 per cubic yard garbage $6.00 per cubic yard sludge $3.75 per cubic yard garbage $6,50 per cubic yard sludge $4.00 per cubic yard garbage $7,00 per cubic yard sludge the cost per cubic yard garbage and $0.50 for April 1, 1987 to March 31, 1988 April 1, 1988 to March 31, 1989 ApI" il 1, 1989 to October 1, 1989 As shown in the above schedule, escalates every April 1 by $0,25 for dewatered sewer sludge, The next scheduled increase begins this month. The City re-negotiated the Hazelwood Enterprises, Inc. contract, Agreement was reached on the following terms: 1. Freeze price per cubic yard at 1987-88 rate. Garbage would be $3,50 and dewatered sewer sludge would be $6,00, Extend current contract from October 1, 1989 to March 31, 1995, Price freeze would be in effect through March 31, 1990, From March 31, 1990 to March 31, 1995, the base price for the five (5) year period would be current price ($3.50) plus the Consumer Price Index from April 1988 to March 31, 1990; and so on for subsequent years. The City will guarantee to dispose of all garbage (excluding trash) at Hazelwood Landfill for the term of the contract (thru March 31, 1995). 2 . 3 . 4 . The contract amendment proposes to "hold the line" on disposal costs, subject to inflation, in return for a guaranteed income through March 31, 1995. Although the contract would freeze the implementation of a City-owned landfill, the City could effectively plan and develop the proposed City-owned landfill while disposing of garbage at a fixed price for the next six (6) years, It is estimated that the contract amendment will result in a savings of two hundred three thousand seven hundred forty dollars ($203,740) through March 31, 1995 over the current contract, Action Required by Council: Pass Ordinance approving amendment to contract with Hazelwood Enterprises, Inc, for disposal of municipal solid waste. Availability of Funds: General Fund Capital Improvement Other Water/Wastewater General Revenue Sharing Account Number: Funds Available: YES NO m:; f~ Ci::ll Robert T. Herrera City Manager Agenda 9-t 2.--8'9 DATE ~