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HomeMy WebLinkAboutOrdinance 6425OF FAYETJF L "�,It 1 u. � I 9gKAN5 PS 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 6425 File Number: 2021-0182 AMEND SUBSECTION (A) FEE INCREASES IN §50.40 RATES FOR SERVICES: AN ORDINANCE TO AMEND SUBSECTION (A) FEE INCREASES IN §50.40 RATES FOR SERVICES OF THE FAYETTEVILLE CITY CODE TO ADJUST RECYCLING AND TRASH USER FEES BASED ON THE WATER, SEWER, TRASH COLLECTION SUB -INDEX OF THE CONSUMER PRICE INDEX WHEREAS, on January 3, 2019, the City Council approved an amendment to § 50.40 Rates for Services which tied annual adjustments to the recycling and trash user fee to the Consumer Price Index ("CPI") based on the recommendations contained in the Recycling and Trash Collections Rate Study completed by MSW Consultants; and WHEREAS, on October 15, 2019, the City Council authorized the renewal of a contract with Waste Management of Arkansas, Inc. for solid waste transfer and disposal services which tied adjustments to the fees paid by the City to the Water, Sewer, Trash Collection sub -index of the CPI; and WHEREAS, in January 2021, the City's rates for residential and commercial service were increased 1.24% in accordance with the CPI increase but Waste Management increased the hauling and disposal fee charged to the City by 3.3% in accordance with the Water, Sewer, Trash Collection CPI sub -index increase pursuant to its contract; and WHEREAS, rates for Residential and Commercial services are set to cover all operating expenses for the programs but because of the different indexes used by the City and Waste Management, the Recycling and Trash Collection Division's operating expenses were increased disproportionately compared to revenue collected from residential and commercial customers; and WHEREAS, staff recommends amending the language in 50.40(A) Fee Increases to specify Page 1 Printed on 4/7/21 Ordinance 6425 File Number 2021-0182 that the recycling and trash user fee shall be adjusted annually based upon the CPI sub -index for Water, Sewer, Trash Collection as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section I.: That the City Council of the City of Fayetteville, Arkansas hereby repeals subsection (A) Fee Increases within §50.40 Rates for Services and enacts a new §50.40(A) as follows: "(A) Fee Increases. The Recycling and Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) sub -index for Water, Sewer, Trash Collection as published by the U.S. Department of Labor, unless specifically waived by City Council resolution." PASSED and APPROVED on 4/6/2021 Attest: t1 j 1111► r t Pi,�rr G. . s i /12 :o- _ YEITEVILLE Kara Paxton, City Clerk Treasaer'. 9y kANSP! � ��iS'••. .•• �F �'4' lYGTON1 ����� Pegs 2 Printed on I/7n1 City of Fayetteville, Arkansas 113 West Mountain Street \ Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2021-0182 Aqenda Date: 4/6/2021 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Ordinance Aqenda Number: C.7 AMEND SUBSECTION (A) FEE INCREASES IN §50.40 RATES FOR SERVICES: AN ORDINANCE TO AMEND SUBSECTION (A) FEE INCREASES IN §50.40 RATES FOR SERVICES OF THE FAYETTEVILLE CITY CODE TO ADJUST RECYCLING AND TRASH USER FEES BASED ON THE WATER, SEWER, TRASH COLLECTION SUB -INDEX OF THE CONSUMER PRICE INDEX WHEREAS, on January 3, 2019, the City Council approved an amendment to § 50.40 Rates for Services which tied annual adjustments to the recycling and trash user fee to the Consumer Price Index ("CPI") based on the recommendations contained in the Recycling and Trash Collections Rate Study completed by MSW Consultants; and WHEREAS, on October 15, 2019, the City Council authorized the renewal of a contract with Waste Management of Arkansas, Inc. for solid waste transfer and disposal services which tied adjustments to the fees paid by the City to the Water, Sewer, Trash Collection sub -index of the CPI; and WHEREAS, in January 2021, the City's rates for residential and commercial service were increased 1.24% in accordance with the CPI increase but Waste Management increased the hauling and disposal fee charged to the City by 3.3% in accordance with the Water, Sewer, Trash Collection CPI sub -index increase pursuant to its contract; and WHEREAS, rates for Residential and Commercial services are set to cover all operating expenses for the programs but because of the different indexes used by the City and Waste Management, the Recycling and Trash Collection Division's operating expenses were increased disproportionately compared to revenue collected from residential and commercial customers; and WHEREAS, staff recommends amending the language in 50.40(A) Fee Increases to specify that the recycling and trash user fee shall be adjusted annually based upon the CPI sub -index for Water, Sewer, Trash Collection as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: City of Fayetteville, Arkansas page 1 Printed on 4/7/2021 File Number: 2021-0182 Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals subsection (A) Fee Increases within §50.40 Rates for Services and enacts a new §50.40(A) as follows: "(A) Fee Increases. The Recycling and Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) sub -index for Water, Sewer, Trash Collection as published by the U.S. Department of Labor, unless specifically waived by City Council resolution." City of Fayetteville, Arkansas Page 2 Printed on 41712021 City of Fayetteville Staff Review Form 2021-0182 Legistar File ID 4/6/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Shannon Newman 3/4/2021 RECYCLING/TRASH COLLECTION (750) Submitted By Submitted Date Division / Department Action Recommendation: An Ordinance to Amend the CPI Language in 50.40(A) — Rates of Services; Fee Increases Account Number Project Number Budgeted Item? NA Does item have a cost? NA Budget Adjustment Attached? NA Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Fund Project Title I V20180321 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Original Contract Number: Comments: Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF APRIL 6, 2021 TO: Mayor and City Council CITY COUNCIL MEMO THRU: Peter Nierengarten, Environmental Director Jeff Coles, Recycling and Trash Collections Director FROM: Shannon Newman, Financial Analyst — Recycling and Trash Collections DATE: March 4, 2021 SUBJECT: An Ordinance to Amend the CPI Language in 50.40(A) — Rates of Services; Fee Increases RECOMMENDATION: Staff recommends City Council approval of an ordinance to amend the CPI language in 50.40(A) — Rates of Services; Fee Increases. BACKGROUND: City Code 50.40(A) — Rates of Services; Fee Increases The Recycling and Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. In 2018, the City contracted with MSW Consultants to conduct a Recycling and Trash Collections Rate study to comprehensively evaluate the solid waste systems full cost of service and to develop a five-year financial plan with recycling and trash disposal rate recommendations. One of the recommendations was to apply the Consumer Price Index (CPI) increase to all customer classes and rates; previously the CPI had only been applied to residential rates. City Council passed Resolution 278-18 on 12/18/18 to adopt the new Recycling and Trash Collection rate study. Ordinance 6138 was approved by City Council on 1/3/19 to amend §50.40 Rates for Services of the Fayetteville City Code to align the City's Recycling and Trash Collection Rates with the rate study. In October 2019, the Fayetteville City Council passed Resolution 229-19 approving a contract with Waste Management of Arkansas for the hauling and disposal of municipal waste from the City's transfer station. The term of the contract was for 5-years. According to the contract, the per ton transportation and disposal rate price shall be adjusted according to the Consumer Price Index (CPI) sub -index for Water, Sewer, Trash Collection. According to the U.S. Bureau of Labor Statistics, the CPI increase applied for 2021 rates was 1.24%. The increase for the sub -index Water, Sewer, Trash Collection was 3.3%. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 DISCUSSION: In January 2021, Residential and Commercial rates for service were increased 1.24% in accordance with the CPI increase granted with Ordinance 6138. Waste Management increased the hauling and disposal fee charged to the City by 3.3% in accordance with the CPI sub -index Water, Sewer, Trash Collection increase granted with Resolution 229-19. Rates for Residential and Commercial services are set to cover all operating expenses for the programs. Solid Waste Disposal fees are 23% of the Residential's operating expense budget and 35% of the Commercial operating expense budget. Because of the discrepancy in language between Ordinance 6138 and Resolution 229-19, 23% of the Recycling and Trash Collection Division's Residential operating expense budget and 35% of the Commercial operating expense budget were increased disproportionately to revenue collected from Residential and Commercial rates for service. For revenue collected to off -set the CPI increase for disposal and hauling expense in the future, staff recommends amending the language in 50.40(A) Fee Increases to specify that the recycling and trash user fee shall be adjusted annually based upon the Consumer Price Index (CPI) sub -index for Water, Sewer, Trash Collection as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. BUDGET/STAFF IMPACT: There would be no impact for 2021. The recommended change would take effect in the 2022 budget. Attachments: Ordinance 6138 Resolution 229-19 Waste Management of Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-M23 Ordinance: 6138 File Number: 2018-0707 RECYCLING AND TRASH COLLECTION RATE AMENDMENTS: AN ORDINANCE TO AMEND § 50.40 RATES FOR SERVICES OF THE FAYETTEVILLE CITY CODE TO ALIGN THE CITY'S RECYCLING AND TRASH COLLECTION RATES WITH THE RECENT RATE STUDY WHEREAS, the Recycling and Trash Collection Rate Study completed by MSW Consultants made several recommendations based on a cost of service analysis and the goals of the City's 2017 Solid Waste Reduction, Diversion, and Recycling Master Plan which are reflected in the staff -recommended amendments to the rates for recycling and trash collection services below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section I. That the City Council of the City of Fayetteville, Arkansas hereby repeals § 50.40 Rates for Services and enacts a new § 50.40 as follows: 50.40 - Rates For Services (A) Fee Increases. The Recycling and Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. (B) Residential Single-Family/Duplex Service. Recycling and Trash shall be collected from residential single-family/duplex customers one time each week for the following rates: Recycling and Trash User Fee Schedule Container Volume Monthly Rate Page ! Printed on 114119 Ordinance. 6138 File Number 2018-0707 32 $10.16 64 $15.52 96 $22.03 (1) There shall be no charge for the collection of residential yard waste. (2) Residential single-family/duplex service customers shall receive bulk collection at no charge one time per year. (3) If a residential single-family/duplex customer wishes to exchange to a larger residential garbage cart size, the customer shall be assessed a $25.00 trip fee. No fee shall be assessed for customers wishing to exchange to a smaller cart. (4) The charge for an extra bag or an over -full cart shall be $6.72. (C) Residential Multi family Service. Trash shall be collected from residential multi -family customers one time each week at a rate of $9.72 per dwelling unit per month unless the owner of the multi- family complex requests greater volume/frequency of service than the minimum required service as determined by the Recycling and Trash Collection Manager. When requests for greater volume/frequency of service by an owner are made, rates shall be determined by the prevailing commercial service rate divided by the number of dwelling units. Multi -family trash service shall include recycling, subject to availability as determined by the Recycling and Trash Collections Director. (D) Commercial Service. Trash shall be collected from commercial customers as shown below. (1) The monthly commercial rate shall be: Commercial User Fee Schedule Commercial Container Size Rate Per Pickup 95 Gallon Cart $19.83 2 cubic yards $47.50 4 cubic yards $88.45 6 cubic yards $1 15.00 8 cubic yards $144.00 (2) Commercial 95-gallon carts shalt be picked up once per week, Monday through Thursday. Larger commercial containers shall be serviced a minimum of once per week and a maximum of six (6) times per week, Monday through Saturday, except authorized holidays for city employees and unavoidable inclement weather. (3) The rate for providing extra collection of any 95-gallon cart shall be twice the monthly collection rate based on the number of collections per week as established by §50.40(B)(1). Page 2 Printed on 114119 Ordinance: 6138 File Number 2018-0707 The rate for providing extra collection of any commercial front load dumpster shall be one-half the monthly per cubic yard rate for each dumpster size. (4) The rate for providing cardboard and paper recycling service shall be 25% of the equivalent commercial container trash service, except that the Recycling and Trash Collection Division may waive that fee for all 95-gallon cart customers. (5) Container rental is a flat fee per month. Container Rental/Dumpster Lease Fee Schedule Container Size (Cubic Yards) Monthly Rate 2 yd $13.53 4 yd $15.47 6 yd $18.00 8 yd $21.25 (E) Use of Composting Facility. Businesses, including commercial landscapers and tree trimmers, and nonresidents that bring brush to the city's composting facility for disposal will be charged as follows: Composting User Fee Schedule Size Rate Compact pickup trucks $5.25 Full size pickup trucks $8.40 Trailers up to 14 feet long $10.50 Trailers greater than 14 feet long $15.75 PASSED and APPROVED on 1/3/2019 Attest: Sondra E. Smith, C ` k • er �. Y Z'_ FAYE FT EVIL G Page 3 Primed on 114119 City of Fayetteville, Arkansas 113West Mountain Street Fayetteville, AR 72701 (479) 575-8323 i Text File File Number: 2018-0707 Agenda Date: 1/3/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Ordinance Agenda Number: B. 1 RECYCLING AND TRASH COLLECTION RATE AMENDMENTS: AN ORDINANCE TO AMEND § 50.40 RATES FOR SERVICES OF THE FAYETTEVILLE CITY CODE TO ALIGN THE CITY'S RECYCLING AND TRASH COLLECTION RATES WITH THE RECENT RATE STUDY WHEREAS, the Recycling and Trash Collection Rate Study completed by MSW Consultants made several recommendations based on a cost of service analysis and the goals of the City's 2017 Solid Waste Reduction; Diversion, and Recycling Master Plan which are reflected in the staff -recommended amendments to the rates for recycling and trash collection services below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby repeals § 50.40 Rates for Services and enacts a new § 50.40 as follows: 50.40 - Rates For Services (A) Fee Increases. The Recycling and Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. (B) Residential Single-Family/Duplex Service. Recycling and Trash shall be collected from residential single-family/duplex customers one time each week for the following rates: Recycling and Trash User Fee Schedule Container Volume Monthly Rate 32 $10.16 64 $15.52 96 $22.03 (1) There shall be no charge for the collection of residential yard waste. (2) Residential single-family/duplex service customers shall receive bulk collection at no charge one cnyofFsy ttwnla Admns s Page 1 Printed on 114rM9 File Number: 2018-0707 time per year. (3) If a residential single-family/duplex customer wishes to exchange to a larger residential garbage cart size, the customer shall be assessed a $25.00 trip fee. No fee shall be assessed for customers wishing to exchange to a smaller cart. (4) The charge for an extra bag or an over -full cart shall be $6.72. (C) Residential Multi family Service. Trash shall be collected from residential multi -family customers one time each week at a rate of $9.72 per dwelling unit per month unless the owner of the multi -family complex requests greater volume/frequency of service than the minimum required service as determined by the Recycling and Trash Collection Manager. When requests for greater volume/frequency of service by an owner are made, rates shall be determined by the prevailing commercial service rate divided by the number of dwelling units. Multi -family trash service shall include recycling, subject to availability as determined by the Recycling and Trash Collections Director. (D) Commercial Service. Trash shall be collected from commercial customers as shown below. (1) The monthly commercial rate shall be: Commercial User Fee Schedule Commercial Container Size Rate Per Pickup 95 Gallon Cart $19.83 2 cubic yards $47.50 4 cubic yards $88.45 6 cubic yards $115.00 8 cubic yards $144.00 (2) Commercial 95-gallon carts shall be picked up once per week, Monday through Thursday. Larger commercial containers shall be serviced a minimum of once per week and a maximum of six (6) times per week, Monday through Saturday, except authorized holidays for city employees and. unavoidable inclement weather. (3) The rate for providing extra collection of any 95-gallon cart shall be twice the monthly collection rate based on the number of collections per week as established by §50.40(B)(1). The rate for providing extra collection of any commercial front load dumpster shall be one-half the monthly per cubic yard rate for each dumpster size. (4) The rate for providing cardboard and paper recycling service shall be 25% of the equivalent commercial container trash service, except that the Recycling and Trash Collection Division may waive that fee for all 95-gallon cart customers. (5) Container rental is a flat fee per month. Container Rental/Dumpster Lease Fee Schedule Container Size (Cubic Yards) Monthly Rate 2 yd $13.53 4 yd $15.47 6 yd $18.00 City of FayetteWlla, Arkansas Page 2 Printed an 11412019 File Number 2018-0707 8 yd $21.25 (E) Use of Composting Facility. Businesses, including commercial landscapers and tree trimmers, and nonresidents that bring brush to the city's composting facility for disposal will be charged as follows: Composting User Fee Schedule Size Rate Compact pickup trucks $5.25 Full size pickup trucks $8.40 Trailers up to 14 feet long $10.50 Trailers greater than 14 feet long $15.75 City of Fayetteville, Arkansas Page 3 Printed on 11412019 113 West Mountain Street Fayetteville AR 72701 (479) 575-8323 Resolution: 229-19 File Number: 2019-0628 WASTE MANAGEMENT OF ARKANSAS, INC.: A RESOLUTION TO EXERCISE THE SECOND FIVE YEAR OPTION TO RENEW THE AGREEMENT WITH WASTE MANAGEMENT OF ARKANSAS, INC. FOR SOLID WASTE TRANSFER AND DISPOSAL SERVICES WHEREAS, on November 3, 2009, the Fayetteville City Council passed Resolution No. 224-09 which approved a five year contract with Waste Management of Arkansas, Inc. for solid waste transfer and disposal services, subject to the annual appropriation of sufficient funds by the City Council, with two successive five year options to renew; and WHEREAS, on November 16, 2014, the Fayetteville City Council passed Resolution No. 194-14 which approved the exercise of the first five year option to renew; and WHEREAS, both Waste Management of Arkansas, Inc. and the City now desire to exercise the second five year option to renew pursuant to Section 1 the Agreement; and WHEREAS, the City Administration recommends that the City Council authorize renewal of the next five year term to this Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby agrees that it is in the best interest of our citizens to exercise, along with Waste Management of Arkansas, Inc., the option to renew the original Agreement for a third five year period under the terms of the original Agreement and Pigs t Printed on 10/16/19 File Number: 2019-0628 Resolution 229-19 authorizes Mayor Jordan to sign the second amendment to the Agreement. PASSED and APPROVED on 10/15/2019 Attest: Lisa Branson, Deputy C vt`3'"'Y OcNrRFgs�•,�� _0 FAYETTEVILLE %I W. rtnftd on 1QN6N9 City of Fayetteville, Arkansas �i Text File File Number: 2019-0628 Agenda Date: 10/15/2019 Version: In Control: City Council Meeting Agenda Number: A. 2 WASTE MANAGEMENT OF ARKANSAS, INC.: 113 West Mountain Street Fayetteville. AR 72701 (479)575-8323 Status: Passed File Type: Resolution A RESOLUTION TO EXERCISE THE SECOND FIVE YEAR OPTION TO RENEW THE AGREEMENT WITH WASTE MANAGEMENT OF ARKANSAS, INC. FOR SOLID WASTE TRANSFER AND DISPOSAL SERVICES WHEREAS, on November 3, 2009, the Fayetteville City Council passed Resolution No. 224-09 which approved a five year contract with Waste Management of Arkansas, Inc. for solid waste transfer and disposal services, subject to the annual appropriation of sufficient funds by the City Council, with two successive five year options to renew; and WHEREAS, on November 16, 2014, the Fayetteville City Council passed Resolution No. 194-14 which approved the exercise of the first five year option to renew; and WHEREAS, both Waste Management of Arkansas, Inc. and the City now desire to exercise the second five year option to renew pursuant to Section 1 the Agreement; and WHEREAS, the City Administration recommends that the City Council authorize renewal of the next five year term to this Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby agrees that it is in the best interest of our citizens to exercise, along with Waste Management of Arkansas, Inc., the option to renew the original Agreement for a third five year period under the terns of the original Agreement and authorizes Mayor Jordan to sign the second amendment to the Agreement. Cky of FayetteWile, Arksnses Psye 1 Printed on 10/16/2019 City of Fayetteville Staff Review Form 2019-0628 Legistar File ID 10/15/2019 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Peter Nierengarten 9/20/2019 SUSTAINABILITY/RESILIENCE (631) Submitted By Submitted Date Division / Department Action Recommendation: Approval of a 5-year term contract renewal with Waste Management of Arkansas for hauling and disposal of municipal solid waste Various Account Number Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? No Budget Impact: Recycling and Trash Collections Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Fund Project Title 0 I $i V20180321 Purchase Order Number: 2018-000554 Previous Ordinance or Resolution 224-09; 194-14 Change Order Number: 2 Approval Date: Original Contract Number Comments: The current budget and item cost cells have been left blank due to the fact that funds for the hauling and disposal of municipal waste are budgeted in various programs and multiple accounts within the Recycling & Trash Coflection Fund. Also, because this :ontract renewal spans multiple years, future year budgets are unknown at this time. _CITY OF FAYETTEVILLE ARKANSAS MEETING OF OCTOBER 15, 2019 TO: Mayor and City Council THRU: Don Marr, Chief of Staff FROM: Peter Nierengarten, Environmental DATE: Director September 20, 2019 SUBJECT: Waste Management Contract Renewal CITY COUNCIL MEMO RECOMMENDATION: Staff recommends the approval of a 5-year term contract renewal with Waste Management of Arkansas for hauling and disposal of municipal solid waste BACKGROUND: In November 2009, the Fayetteville City Council passed Resolution 224-09 approving a contract with Waste Management of Arkansas or the hauling and disposal of municipal waste from the City's transfer station. The term of the original contract was for 5-years and included a provision for the option to renew for 2 successive 5-year terms upon mutual written agreement. The first renewal was executed on November 6, 2014 by Resolution 194-14. DISCUSSION: Having completed the first and second 5-year terms of the contract in a successful manner, both parties agree to exercise the provision in the contract for a final 5-year term thru December 31, 2024. Terms of the 5-year agreement include: • City will continue paying the current transportation and disposal rate of $39.26 per ton through December 31, 2019 • City agrees to pay Waste Management a transportation and disposal rate of $41.22 starting on January 1, 2020 — this is a 5% rate increase • Beginning on January 1, 2021 and each January 1 thereafter the per ton transportation and disposal rate price shall be adjusted according to the Consumer Price Index (CPI) sub -index for Water, Sewer, Trash Collection (WST) • The WST index increase shall look at the increase for the previous 12 months • The average tonnage of loaded trucks leaving the City's transfer station shall be 22 tons BUDGET/STAFF IMPACT: Funds for hauling and disposal services are budgeted in the Recycling and Trash Collection fund. Attachments: Second Contract Renewal First Contract Renewal (includes original contract) Mailing Address: 113 W. Mountain Street www.fayetteville-argov Fayetteville, AR 72701 SECOND AMENDMENT TO THE CITY OF FAYETTEVILLE, ARKANSAS SOLID WASTE TRANSFER AND DISPOSAL SERVICES CONTRACT This Second Amendment to the City of Fayetteville, Arkansas Solid Waste Transfer and Dispo Services Contract (hereafter the "Amendment") is entered into as of the a day of e �-obe , 2019, by and between the City of Fayetteville (the "City"), and Waste Management of Arkansas, Inc. (the "Contractor or Waste Management"). WITNESSETH: WHEREAS, the City of Fayetteville and Waste Management have previously entered into a certain Agreement for Solid Waste Transfer and Disposal Services, dated on or about November 3, 2009, and amended on October 15, 2014 (collectively the "Contract") whereby Waste Management was granted the right to provide solid waste transfer and disposal within the City, as more particularly set forth in the Contract; and WHEREAS, the City and Waste Management desire to modify the Contract, as more particularly set forth below. NOW, THEREFORE, for and in consideration of the good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. The City and Waste Management agree to extend the term of the Contract for five additional years so that the new Contract termination date is December 31, 2024. This Contract is subject to the annual appropriation of sufficient funds for this Contract in the budget by the Fayetteville City Council. 2. Section 3 of the Contract entitled "Fees" is hereby superseded and replaced with the following language: A. City agrees to pay Waste Management the current rate of $39.26 per ton through December 31, 2019 B. On January 1, 2020, the City agrees to pay Waste Management $41.22 per ton for transportation, hauling and disposal. Beginning on January 1, 2021 and on each January 1 thereafter, the per ton price shall be adjusted by the percentage that the Consumer Price Index (CPI-U), US City Average for All Urban Consumers (current series), Water, Sewer, Trash Collection, Not Seasonally Adjusted, Base Period December 1997=100 Series ID CUUR0000SEHG (CPI) (ttps://beta.bls.aov/dataViewer/view/time series/CUUROOOOSEHG) has increased during the preceding twelve-month period for which the data has been published. If the above CPI ceases to be published, the parties agree to substitute another equally authoritative measure of change in the purchasing power of the U.S. dollar as may be then available so as to carry out the intent of this provision. Waste Management shall Page 1 of 3 Contract for Solid Waste Transfer and Disposal Services, Amendment 2 Bid 09-61 coordinate with the City in writing prior to any implementation of any CPI -U price adjustment. Such coordination shall include the amount of the price adjustment, documentation substantiating the CPI published numbers, and the date the adjusted price takes effect. The City and Waste Management shall mutually agree on any increase, including calculation accuracy on CPI or other equally authoritative measure as applicable, prior to any price adjustment. C. Price adjustment shall be calculated using the following: CPI for current period, Less CPI for previous period Equals index point change. Divide index point change by previous period CPI. That result shall be multiplied by 100 to equal the percent change in the price per ton rate. Example, provided by the Bureau of Labor Statistics, is shown below or can be found at https://www.bls.govLQi/factsheetslescalation.htm: CPI for current period 232.945 Less CPI for previous period 229.815 Equals index point change 3.130 Divided by prevtous period CP1 229.815 Equals 0.0136 Rest multiplied by 100 0.0136 x 100 Equals percent change 1.4% Section 2(a) of the Contract is hereby amended to read as follows: A. Transporting of all solid waste shall be so contained, tied, or enclosed, that leaking, spilling or blowing of waste is prevented. All solid waste received at the Fayetteville Transfer Station will be transported to a permitted and approved disposal site within twenty-four hours after receipt of said solid waste. The City, as the Transfer Station operator, shall be responsible to load transport trailers with solid waste payload weights no greater than that required to reach gross vehicle weight limitations set by law. However, in the interest of efficiency, the City agrees to load solid waste in such a way that the total annual tonnage of material loaded divided by the total number of trailer loads in that year equals at least 22 tons. 4. Nothing contained herein shall be deemed to amend or modify the Contract except as expressly set forth herein. In the event of a conflict between the terms of the Contract and this Amendment, the terms of this Amendment shall control. IN WITNESS WHEREOF, this Second Amendment has been executed as of the date first set forth above. Page 2of3 Contract for Solid Waste Transfer and Disposal Services, Amendment 2 Bid 09-61 CITY: CONTRACTOR: CITY OF FAY TTEVILLE, ARKANSAS WASTE MANAGEMENT OF ARKANSAS, INC. B: I By: I.ioneld Jorda , or Eddie McM us, Area Vice President V -, " r " Attest: J�C.1 Sondra E. Smith, City Cle k,,,,G�. cITY FAV =�• E�EVIL Page 3 of 3 Contract for Solid Waste Transfer and Disposal Services, Amendmen Bid 09-61 RESOLUTION NO.194-14 A RESOLUTION TO EXERCISE THE FIVE YEAR OPTION TO RENEW THE AGREEMENT WITH WASTE MANAGEMENT OF ARKANSAS, INC. FOR SOLID WASTE TRANSFER AND DISPOSAL SERVICES WHEREAS, on November 3, 2009, the Fayetteville City Council passed Resolution No. 224-09 which approved a five year contract, subject to the annual appropriation of sufficient funds by the City Council, with two successive five year options to renew; and WHEREAS, both Waste Management of Arkansas, Inc. and the City now desire to exercise the first five year option to renew pursuant to Section 1 the Agreement; and WHEREAS, the City Administration recommends that the City Council authorize renewal of the next five year term to this Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section : That the City Council of the City of Fayetteville, Arkansas hereby agrees that it is the best interest of our citizens to exercise, along with Waste Management of Arkansas, Inc., the option to renew the original Agreement for a second five year period under the terms of the original Agreement and authorizes Mayor Jordan to sign the first amendment to the Agreement. PASSED and APPROVED this 6' day of November, 2014. APPROVED:/ ; ATTEST: By: By; I NE JO AN, Mayor LISA BRANSON, Deputy City Clerk TR ..U• ,-ftr. : Fa1'E17EVILLE:M_ L9 • y 5 '�`t'•y�.pkA NSQ' Jam``. City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 �..r 479-575-8323 TDD - (' 479 521-1316 }. Text File --- File Number: 2014-0449 Agenda Date: 11/6/2014 Version: ' Status: Passed In Control: City Council File Type: Resolution Agenda Number: A. 7 A RESOLUTION TO EXERCISE THE FIVE YEAR OPTION TO RENEW THE AGREEMENT WITH WASTE MANAGEMENT OF ARKANSAS, INC. FOR SOLID WASTE TRANSFER AND DISPOSAL SERVICES WHEREAS, on November 3, 2009, the Fayetteville City Council passed Resolution No. 224-09 which approved a five year contract, subject to the annual appropriation of sufficient funds by the City Council, with two successive five year options to renew; and WHEREAS, both Waste Management of Arkansas, Inc. and the City now desire to exercise the first five year option to renew pursuant to Section I the Agreement; and WHEREAS, the City Administration recommends that the City Council authorize renewal of the next five year term to this Agreement. NOW, THEREFORE, BE 1T RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby agrees that it is the best interest of our citizens to exercise, along with Waste Management of .Arkansas, Inc., the option to renew the original Agreement for a second five year period under the terms of the original Agreement and authorizes Mayor Jordan to sign the first amendment to the Agreement. OW "Fayed-I e, Arkans" Page 1 Printed on 11/7t2014 Jeff Coles Submitted By City of Fayetteville Staff Review Form 2014-0449 Legistar File ID 11/6/2014 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 10/15/2014 Recycling & Trash Collection / _ Transportation Services Department Submitted Date Division / Department Action Recommendation: Approval of a 5 year term contract renewal with Waste Management of Arkansas for hauling and disposal of municipal waste. Budget Impact: Various Recycling and Trash Collection Account Number Project Number Budgeted Item? Yes Current Budget Funds Obligated Current Balance Fund Project Title { y Does item have a cost? Yes Item Cost Budget Adjustment Attached? No Budget Adjustment Remaining Budget $ - V20140710 Previous Ordinance or Resolution # 224-09 Original Contract Number: Approval Date: Comments: The current budget and item cost cells have been left blank due to the fact that funds for the hauling and disposal of municipal waste are budgeted in various programs and multiple accounts within the Recycling & Trash Collection Fund. Also, because this contract renewal spans multiple years, future year budgets are unknown at this time. CITY OF ry • rAR VeANSAS MEETING OF NOVEMBER 6, 2014 TO: Mayor and City Council CITY COUNCIL AGENDA MEMO THRU: Terry Gulley, Transportation Services Director Don Marr, Chief of Staff FROM: Jeff Coles, Director of Recycling and Trash Collection DATE: October 15, 2014 SUBJECT: Waste Management Contract Renewal RECOMMENDATION: Staff recommends the approval of a 5 year term contract renewal with Waste Management of Arkansas for hauling and disposal of municipal waste BACKGROUND: In November of 2009, the City Council passed Resolution 224-09 approving a contract with Waste Management of Arkansas for the hauling and disposal of municipal waste from the City's transfer station. The term of the of the original contract was for 5 years and included provision for the option to renew for 2 successive 5 year terms upon mutual written agreement. DISCUSSION: Having completed the first 5 year contract in a successful manner, both parties are in agreement to exercise the provision of the contract to extend for an additional 5 year term, from December 1, 2014 until November 30, 2019. BUDGET/STAFF IMPACT: Funds for hauling and disposal services are budgeted in the Recycling and Trash Collection Fi ind Attachments: Original Contract Renewal Document Mailing Address: 113 W. Mountain Street Fayetteville, AR 72701 City of Fayetteville, Arkansas Bid 09-61, Solid Waste Transfer and Disposal Services Contract This Agreement is made and entered into dus3A J day of c..g,^ 2009, by and between the City of Fayetteville, Arkansas and Waste Management of Arkansas. Inc. Terms & Conditions WITNESSETH. In consideration of the terms and conditions set forth below, which constitute good and enforceable consideration, it is agree& 1. TERM OF AGREFMh?,'� : The agreement is to take effect and continue and remain in full force and effect for a period of five (5) years, and such period shall commence on December 1st, 2009 or on the date the contract is approved by the Fayetteville City Council. The parties shall have the option to renew this agreement for two (2) successive five (5) year tams upon mutual written agreement. The option to renew can be made effective by written notification from either party to the other party no later than ninety (90) days prior to the expiration of the contract tam This contract will be subject to the annual appropriation of sufficient funds for this contract in the budget by the Fayetteville City Council. 2. SCOPE OF SERVICE: The Contractor shall be responsible for the performance of all services reasonably necessary to provide for the proper disposal of all of the residential and commercial waste generated within the City of Fayetteville. Goods and services to be pirovided by Contractor under the terms of this agreement shall include but not be limited to the following: a) Transporting of all solid waste shad be so contained, tied, or enclosed. that leaking. spilling or blowing of waste is prevented. All solid waste received at the Fayetteville Transfer Station will be transportod to a permitted and approved disposal site within twenty-four hours after receipt of said solid waste. The City of Fayetteville, as the Transfer Station operator, shall be responsible to load transport trailers with solid waste payload weights no greater than that required to reach gross vehicle weight limitations set by law. However, in the interest of efficiency, the operator is responsible to load solid waste in such a way that a standard "walking floor" trailer with a capacity of 115 cubic yards will contain a minimum of 20 tons of solid waste_ b) The Contractor shall provide an adequate number of vehicles, trailers and back up equipment maintained in good physical condition and working order, all labor, supervision, equipment, maintenance, fuel and necessary supplies to insure the daily systematic and orderly performance of all services specified in the contract within the required time frame. c) The Contractor will guarantee to the City of Fayetteville that Contractor's transport tractors, trailer and any other equipment used in the transport of accepted solid waste will be maintained in a mechanically sound, clean and uniformly painted manner at all times. There will be sufficient spare equipment available to insure daily loading transport, and disposal of all waste received at said Transfer Station within the allotted time frame. All equipment provided by the Contractor will be properly licensed and permitted by appropriate District, City, County & State authorities as required. Additionally, transport tractors will be marked with the name and telephone number of the contractor on each side of the vehicle. d) Preparation of required reports to all government agencies, if applicable, with copies to City of Fayetteville. e) Contractor shall provide to the City of Fayetteville documented proof of disposal for each load. Such documentation shall be provided to the City of Fayetteville with each invoice. City of Fayetteville, Arkansas Bid 09-61, Solid Waste Transfer and Disposal Services Page 18 of 20 3. FEES: The prices and rates bid by the successful bidder shall be fins for the rust two (2) years of the contract. After the first 2 years of the contract, adjustments shall be made as follows: The cost per ton rate shall be adjusted beginning December 1, 2011, by using the difference in the United States Department of Labor Index For Goods and Services from September 2010 through August 201 L This adjustment using subsequent annual USDL Index for Goods and Services numbers shall be used in December 2012 and December 2013. This inflationary index or a full renegotiation of rates by the parties may be used for subsequent renewals of the contract beyond the first five year period. Payment shall. be on a cost per ton basis. Measurement shall be from the City of Fayetteville's ouf5ound scale numbers. 4. SECURING FOR PERFORMANCE — BID SEC UTtTTY: The Contractor responsible for the transportation and disposal of solid waste received at the Fayetteville Transfer Station will be required to fiunish a corporate surety bond as security for the performance of said portion of the Contract Said surety bond shall be in the amount of twenty five percent (25%) of the total bid price for the first year of the conuact. Said surety bond after the first year shall be for twenty five percent (25%) of the previous year contracted volume. The premium for the bond(s) described above shall be paid by the Contractor. A certificate from the surety showing that the bond premiums) is/are paid in full shall accompany the bond. The surety on the bond shall be from corporate surety company duly authorized to do business in the State of Arkansas. Bonds must be written by an "A" rated bonding company. 5. QUANTITIES: The City of Fayetteville makes no warranties as to the quantities of solid waste available for transfer and disposal. The City of Fayetteville during the ten,, of this contract shall deliver to City of Fayetteville's Transfer Station all of the municipal, residential and commercial solid waste streams collected by the City of Fayetteville except recyclable waste recycled as such. 6. DISPOSAL STIES: Contractor shall provide evidence satisfactory to the City of Fayetteville that the Contractor shall at all time& have a commitment for adequate landfii'. air space adequate to exceed the projected needs of the waste to be disposed of hereunder during the term of th= --ontract but in any case not less than 10 years. Disposal site will be in compliance with EPA Regulation., Subtitle "D" and any future subtitles or regulations required of said site. Prior to any change by the contractor of disposal site the Contractor shall provide documentation to the City of Fayetteville that such site meets specifications heranader. 7. REPRESENTATION OF THE CITY OF FAYET I EVILLE: Tie City of Fayetteville represents that the City of Fayetteville's Transfer Station is properly and fully permitted as,, a solid waste transfer station by all applicable governmental authorities. g. DEFAULT AND TERMINATION: Upon breach by either patty to this Contract of any of its material terms and conditions, the non -breaching party shall deliver written notice to the breaching party of said breach If the breaching parry fails to eve the breach within sixty (60) days, the non -breaching party shall be entitled to declare that the breaching party is in default and the contract tarudnated. 9. GENERAL SPECIFICATIONS: The terms and conditions of this Contract include each and every general specification set forth hereinafter. 10. ADMINISTRATIVE PROVISIONS: This agreement constitutes the entire agreement between the parties and there are no representations, warranties, promises, covenants, agreements or contracts except as set forth herein. This agreement may not be amended except as set forth in writing and signed by authorized representatives for both parties. This agreement shall be construed under the laws of the State of Arkansas, and shall inure to the benefit of the parties hereto, their successors, assigns and representatives. This agreement may be assigned by City of Fayetteville, Arkansas Bid 09-61, Solid Waste Transfer and Disposal Services Page 19 of 20 either party only with the prior written consent of the other party, which consent shall not be unreasonably withheld. The persons signing on behalf of the respective parties hereto warrant that they have full and proper authority to execute this agreement on behalf of the parties so represented. I I. FREEDOM QF INFORMATION ACT, City of Fayetteville contracts and documents prepared while performing City of Fayetteville contractual work are subject to the Arkansas Freedom of information Act If a Freedom of Information Act request is presented to the City of Fayetteville, the contractor will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. §25-19-)01 et. seq.). Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. 12. ATTACHMENTS: Bid documents referencing Bid 09-61, Solid Waste Transfer and Disposal Services and conoracws bid submittal in response to Bid 09-61. 13. JUPJSDICTION AND VENUE: This agreement shall be interprerod and enforced pursuant to Arkansas law. Jurisdiction and venue shall be in Washington County, Arkansas. IN AGREEMENT with the provisions set out above, we sign our names below on this the,l� day of 2009. Printed Name and Title ATTEST: By: DNompany Secret& In 1 'C Printed Name and Title City of Fayetteville, Arkansas Bid 09-61, Solid Waste Transfer and Disposal Services Page 20 of 20 CITY OF 3��AYETTEVILLE, ARKANSAS By: tvrELD J AN Mayor ATTEST By: n.a. --'� 6" Soncrra Smith, City Clerk ---- FIRST AMENDMENT TO THE CITY OF FAYETTEVILLE, ARKANSAS SOLID WASTE TRANSFER AND DISPOSAL SERVICES CONTRACT This First Amendment to the City of Fayetteville, Arkansas Solid Waste Transfer and Disposal Services Contract (hereafter the "Amendment') is entered into as of the __ day of , 2014, by and between the City of Fayetteville (the "City"), and Waste Management of Arkansas, Inc. (the "Contractor'). WITNESSETH: WHEREAS, the City of Fayetteville and the Contractor have heretofore entered into a certain Agreement for Solid Waste Transfer and Disposal Services, dated on or about November 3, 2009 (the "Contract', whereby Contractor was granted the exclusive right to provide solid waste transfer and disposal within the City of Fayetteville, as more particularly set forth in the Contract; and WHEREAS, the City and Contractor desire to modify the Contract, as more particularly set forth below. NOW, THEREFORE, for and in consideration of the good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the parties hereto agree as follows: 1. The City and Contractor agree to extend the term of the Contract for five additional years from December 1, 2014, so that the new Contract termination date is November 30, 2019. This Contract is subject to the annual appropriation of sUivoient funds for this Contract in the budget by the Fayetteville City Council. 2. Nothing contained herein shall be deemed to amend or modify the Contract dated November 3, 2009, except as expressly set forth herein. In the event of a conflict between the terms of the Contract and this Amendment, the terms of this Amendment shall control. IN WITNESS WHEREOF, this Amendment has been executed as of the date first set forth above. CITY: CONTRACTOR: CITY OF FA TTEVILL$, ARKANSAS WASTE '1iAN MENT OF ARK A,ti SAS, y INC. / �. By: On behalf of: Tit : 1:s_ -Market Attest: Sondra Smith, City S y � : • G�Z Y p�, •:� -J; FAYETT VILE •N I of I CD kgNS -N ros NORTHWEST AuAww Democrat is One& r 51 _tiic a ;C LAB 4 :69`ria AFFIDAVIT OF PUBLICATION I, Brittany Smith, do solemnly swear that I am the Accounting Legal Clerk of the Northwest Arkansas Democrat -Gazette, a daily newspaper printed and published in said County, State of Arkansas; that I was so related to this publication at and during the publication of the annexed legal advertisement the matter of. Notice pending in the Court, in said County, and at the dates of the several publications of said advertisement stated below, and that during said periods and at said dates, said newspaper was printed and had a bona fide circulation in said County; that said newspaper had been regularly printed and published in said County, and had a bona fide circulation therein for the period of one month before the date of the first publication of said advertisement; and that said advertisement was published in the regular daily issues of said newspaper as stated below. City of Fayetteville Ord 6425 Was inserted in the Regular Edition on: Apri 1 11, 2021 Publication Charges: $191.52 _-6&; _ JWa*- Brittany Smith Subscribed and sworn to before me This (Z day of t!� A , 2021. 1 1,uZi Notary Public My Commission Xpires: **NOTE** Please do not pay from Affidavit Invoice will be sent. Cathy Wiles Benton COUNTY NOTARY PUBLIC—ARKANSAS My Commission Expires 02-20-2024 Commission No. 12397118 Ordinance: 6425 File Number: 2021-0182 AMEND SUBSECTION (A) FEE INCREASES IN §50.40 RATES FOR SERVICES: AN ORDINANCE TO AMEND SUBSECTION (A) FEE INCREASES IN §50.40 RATES FOR SERVICES OF THE FAYETTEVILLE CITY CODE TO ADJUST RECYCLING AND TRASH USER FEES BASED ON THE WATER, SEWER, TRASH COLLECTION SUB -INDEX OF THE CONSUMER PRICE INDEX WHEREAS, on January 3, 2019, the City Council approved an amendment to § 50.40 Rates for Services which tied annual adjustments to the recycling and trash user fee to the Consumer Price Index ("CPI") based on the recommendations contained in the Recycling and Trash Collections Rate Study completed by MSW Consultants; and WHEREAS, on October 15, 2019, the City Council authorized the renewal of a contract with Waste Management of Arkansas, Inc. for solid waste transfer and disposal services which tied adjustments to the fees paid by the City to the Water, Sewer, Trash Collection sub -index of the CPI; and WHEREAS, in January 2021, the City's rates for residential and commercial service were increased 1.24% in accordance with the CPI increase but Waste Management increased the hauling and disposal fee charged to the City by 3.3% in accordance with the Water, Sewer, Trash Collection CPI sub -index increase pursuant to its contract; and WHEREAS, rates for Residential and Commercial services are set to cover all operating expenses for the programs but because of the different indexes used by the City and Waste Management, the Recycling and Trash Collection Division's operating expenses were increased disproportionately compared to revenue collected from residential and commercial customers; and WHEREAS, staff recommends amending the language in 50.40(A) Fee Increases to specify that the recycling and trash user fee shall be adjusted annually based upon the CPI sub -index for Water, Sewer, Trash Collection as published by the U.S. Department of Labor, unless specifically waived by City Council resolution. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals subsection (A) Fee Increases within §50.40 Rates for Services and enacts a new §50.40(A) as follows: "(A) Fee Increases. The Recycling and Trash User Fee shall be adjusted annually based upon the Consumer Price Index (CPI) sub -index for Water, Sewer, Trish Collection as published by the U.S. Department of Labor, unless specifically waived by City Council resolution." PASSED and APPROVED on 4/6/2021 Approved: Lioneld Jordan, Mayor Attest: Kara Paxton, City Clerk Treasurer 75403044 Apr 11, 2021