..Title
Authorizing the City Manager to amend the Progressive Waste Solution (PWS) solid waste contract to approve a price adjustment increase as described in the current contract extension which became effective on February 1, 2013.
Summary
The contract between PWS and the City of Pflugerville was approved on November 16, 2009 and became effective on February 1, 2010. A copy of that original contract is attached to this agenda item. The contract was extended through January 31, 2018 with an amendment approved in October 2012. The amendment is also attached. Section 10A of the contract, as amended, titled Operating Cost Adjustment states that beginning on February 1, 2016 and anytime thereafter during the term of the contract, PWS may petition the City of Pflugerville for rate and price adjustments on the basis of material or unusual changes in its cost of operations. PWS shall provide documents and records in reasonable form and sufficient detail to reasonably establish the necessity of any requested rate adjustment. The letter from PWS requesting the operating cost adjustment and supporting documentation is attached. Finance staff has reviewed the documents and calculations presented by PWS. Staff concurs with the calculations based upon the Consumer Price Index (CPI) numbers provided by PWS.
As shown on the attachment titled Solid Waste Historical Rates, rates charged by PWS to the City of Pflugerville have not increased since 2013. The price adjustment request of 2.0% results in a monthly change from $14.98 to $15.28, a difference of $.30.
Deadline for City Council Action
There is no deadline for City Council action. Approving this agenda item at this council meeting will increase the rates as of the PWS March 15, 2016 statement to the city.
Fiscal Impact
The fiscal impact to the City is being analyzed by Finance staff. The retail bill to the garbage customer includes the cost of the PWS service, the associated sales tax, and a franchise fee...
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