2005-03-28 Regular Meeting, Public Hearing and Workshop Meeting of the La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Requested By: s C.iIIett >i/1k Annronriation Agenda Date Requested: Source of Funds: Department: Public Wgrks Account Number: Report: XX Resolution: Ordinance: Amount Budgeted: Exhibits: Letter from BFI Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION BFI has provided commercial solid waste services to the City of La Porte since November 1, 1990. The Contract was renewed in 1995, and rebid in 2000. The City awarded a five year contract to BFI on October 9, 2000, expiring on October 31, 2005. The current contract provided for the option to renew the contract for an additional three years. BFI has requested that the Contract be renewed. The Contract has several key provisions that should be pointed out. · The Contractor pays the City 4% of gross revenues. · The Contractor provides commercial solid waste service to all city facilities at no charge. · The contract provides for an annual cost-of-living adjustment (CPI-U) not to exceed 5% per year. BFI has proposed to renew the contract for an additional three (3) years, under the terms ofthe renewal clause. Although the CPI-U for the past year was 3%, BFI has proposed a rate increase of 2.5%. All other terms and conditions remain the same. The Contract cannot be renewed again, and will expire on October 31, 2008. Action Required bv Council: Provide direction to staff to return to council with an ordinance authorizing the renewal of the Contract, or begin preparation to bid the contract, with new service to begin on November 1,2005. Approved for City Council Aeenda cx1l. OM ~/ Debra F~e1le, ~ Manager 4- ftJ ,-J5 Date