Title
Approving an ordinance on second reading with the caption reading: AN ORDINANCE OF THE CITY OF PFLUGERVILLE, TEXAS, AMENDING RATES, CHARGES AND FEES FOR SOLID WASTE UTILITY SERVICE; REPEALING ALL ORDINANCES TO THE EXTENT THEY ARE IN CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.
Summary
This proposed ordinance increases the monthly residential retail rate for customers of the City's solid waste and recycling collection system from $15.60 to $15.90. The cost of providing the service to our citizens increased by $.30 per month through a contractual price adjustment, and this proposal increases the monthly charge to the customer by that amount. The City Attorney has reviewed this ordinance and approved as to form.
A ten year rate history is shown on the attached Historical Rate Summary. The cost charged by the garbage company has increased by 18% ($2.33) over that time while the proposed cost to the customer will be increased by 14% ($2.01). Staff does not anticipate the need for another adjustment prior to the bidding and reacquisition process for solid waste/recyling that will be done in the fall of 2017.
An additional attachment shows the current retail rates for solid waste/recycling for cities in our area. Pflugerville's proposed rate of $15.90 plus tax, $17.21, will continue to be the lowest rate in the area.
As with the other utilities in the city, part of the revenue received from the garbage utility is a franchise fee, which is transferred to the General Fund for the use of the city's rights-of-way. The franchise fees are part of the general fund revenue that pays for street maintenance and improvement. This rate increase will keep the amount of franchise fee from the garbage utility at the same level of funding. Any change to the proposed increase will result in a decrease in the amount of the franchise fee transferred to the General Fund.
Previous City Council Action
At their regular meeting on March 8, 2016, the City Council approved a request by Progressive Waste Solutions (IESI), the city's residential garbage provider, for a price increase adjustment of 2.0% resulting in a change in their monthly charge to the City from $14.98 to $15.28 per customer, a difference of $.30.
This ordinance was approved on first reading on March 22, 2016.
Deadline for City Council Action
Action on second reading is requested on April 12, 2016.
Fiscal Impact
Upon final approval of the ordinance, residential garbage customers will see a monthly increase of $.30 in order to cover the increased cost in Progressive Waste Solutions' charges to the City.
Staff Recommendation
Approve the ordinance on second and final reading.
Drafter
Lauri Gillam
Assistant City Manager