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Home My Public Portal AboutORD14083 • BILL NO. 2006-50 SPONSORED BY COUNCILMAN Berry ORDINANCE NO. Aws 3 AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH ALLIED SERVICES, L.L.C., DBA MID- STATE WASTE, FOR SOLID WASTE COLLECTION AND DISPOSAL. BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: Section 1. The Mayor and City Clerk are hereby authorized and directed to execute an amendment to the agreement with Allied Services, L.L.C., dba Mid-state Waste, for solid waste collection and disposal. Section 2. The amendment shall be substantially the same in form and content as that agreement attached hereto as Exhibit A. Section 3. This Ordinance shall be in full force and effect from and after the date of Its passage and approval. • Passe cY 7 Approve �j r iding Officer Mayor A T. APPRO AS 7 F RM: ity C rk City Co selor Allied Waste Services of Jefferson City Fuel Relief Fact Sheet • AWS of Jefferson City is requesting a 3% price increase on their current solid waste contract with the City of Jefferson due to the excessive and uncontrollable fuel costs, per section 21, page 10 of the current contract titled "Unusual Changes and Costs". • The 3% price increase will be reflected on all monthly/quarterly rates. The increase will not be added to any rental fees. • A 3% price increase will change the current bag cost from $1.45 to $1.49 (.04 cents per bag). It will also change the current cart price, less the rental fee, from $13.11 to 13.51 (.40 cents per month). • The commercial customer rates will increase 3%. • In June 2004 when AWS proposed the contract extension the fuel rate • per gallon was $1.65. When the contract extension started in November 2004 the fuel rate per gallon had already risen to $2.11. As of June 2006 the fuel rate per gallon is running between $2.85 to $2.95 per gallon. This represents a 73% increase in the fuel cost from the time of AWS proposal to now. • Our current fuel costs are in excess of our estimated cost by $8,880.009 when we projected our fuel costs for the Jefferson City contract we estimated that our rate per gallon would be $1.65, now our fuel costs per gallon is $2.89. • The impact of the 3% price increase for the fuel adjustment will provide $8668.00 in revenue. • AWS will reduce the fuel adjustment percentage from 3% to 1.5% in the future if the fuel rate per gallon drops below $2.45. The 3% fuel adjustment price increase will not cover our loss to-date; it • will help relieve current and estimated future fuel costs. v d G n CO G n � � Q / O to O N O O N > N > N N - N T � � W N p p w O .O 2004 Gain on Sales of Transportation Other Operating Assets 0% Costs • 0% Tipping 3rd Party 1 Labor 0% � 29% Tipping VC Safety Vehicle R&M Facility Operating Costs--- ---- \ `� Equipment R&M 1% \` Vehicle 2% Equipment Rent 0% Operating 6% 2005 Gain on Sales of Transportation Other Operating Assets 0% Costs 0% 1% Tipping 3rd Party Labor 0% 27% Tipping UC s • 37% Vehicle R&M Safely 18% 6% Facility Operating Costs Equipment R&M Vehicle 1% Equip a tRent 3% Operating 9% 2006 Gain on Sales of Transportation Other Operating Assets 0% Costs Tipping 3rd Party 0% 1% 0% Labor 28% Tipping VC v` 37% r Safety r{.. Vehicle R&M 7% .�� 13% F ng Costs 3% R&M •Operating Costs Vehicle Equipment Rent Operating 0% 10% i i; • CITYOFJEFFERSON AMENDMENT TO SOLID WASTE AGREEMENT WHEREAS,the City of Jefferson,Missouri,a municipal corporation,with offices located at 320 East McCarty Street,Jefferson City,Missouri,65101,hereinafter designated"City,"entered into an Agreement with Laidlaw Waste Systems, Inc. on August 12, 1994 which was assigned on January 1, 1998 to Allied Services, L.L.C., dba Mid-State Waste, a Delaware L.L.C. authorized to do business in the state of Missouri, hereinafter referred to as"Contractor,"and amended on October 20, 1999, October 24, 2000,and June 24, 2004.. WHEREAS, the Agreement was to provide solid waste collection,transportation,and disposal services within the City of Jefferson, Missouri; boundaries, and; WHEREAS, both parties wish to amend the Agreement by revising the charges and rates for pick up service,as outlined in"Exhibit A"to include appropriate escalators for years twelve(12) through fifteen (15) of the agreement; NOW, THEREFORE, be it agreed as follows: • A. Exhibit"A" of the original Agreement dated August 12, 1994, assigned January 1, 1998, and amended on October 20, 1999, October 24, 2000, and June 24, 2004 (hereinafter referred to as"Original Agreement")is hereby amended by the addition of the following language under Future Years: FUTURE YEARS Year 2 Max. Increase (1996.1996) — 3%above prior year (1994.1995) Year 3 Max. Increase (1996.1997) — 3% above prior year (1995.1996) Year 4 Max. Increase (1997.1998) — 3% above prior year (1996.1997) Year 5 Max. Increase (1998.1999) — 3% above prior year (1997.1998) Year 6 Max. Increase (1999.2000) — 3% above prior year (1998.1999) plus a $0.76/month residential cart rental fee* Year 7 Max. Increase (2000.2001) — 3% above prior year (1999.2000) plus a $0.76 1month residential cart rental fee* Year 8 Max. Increase (2001.2002) — 3% above prior year (2000.2001) plus a $0.76/month residential cart rental fee* Year 9 Max. Increase (2002.2003) — 3% above prim year (2001.2002) plus a $0.75/month residential cart rental fee* Year 10 Max. Increase (2003.2004) — 3% above prior year (2002.2003) plus a $0.75/month residential cart rental fee* Year 11 Max. Increase (2004.2005)** — 1.5% above prior year (2003.2004) plus a $0.76/month residential cart rental fee* p1lMavmrnb uN Frll"q.\nnMtu�uMly Ikrvmrnt.VA41,tii�lr A{m•mrnl Amralmrnt Yun•7.1 • Year 12 Max. increnae (2006.2006)** — 1.5% above prior year (2004.2005) plus a $0.75/month residential cart rental fee* Year 12 Increase Effective 3% above current Year Increase. September 1, 2006 Year 13 Max. Increase (2006.2007)** — 1.5% above prior year (2005.2006) plus a $0.75/month residential cart rental fee* Year 14 Max. Increase (2007.2008)** — 1.5% above prior year (2006.2007) plus a $0.75/month residential cart rental fee* Year 15 Max. Increase (2008.2009)** — 1.5% above prior year (2007.2008) plus a $0.76 1month residential cart rental fee* *The$0.75/month residential cart fee shall remain constant and shall not be subject to change except by prior written agreement of the parties. It is not subject to annual percentage increases. **Any containers leased by the City during the 2003.04 contract year shall remain at the 2003• 04 price and shall not be subject to the 1.5% increase. ti Di ESL - In the event that fuel prices(retail)drop below$2.45 per gallon, then AWS will reduce their fee by 1.5% until such time that fuel prices are above $2.45 per gallon. • B. Contractor agrees that during the term of this agreement it will not offer a rate to any customer within Cole County but outside the corporate limits of the City which is equal to or less than the rates offered to customers within the City. C. All other sections of the Agreement dated August 12, 1994, assigned January 1, 1998, and amended on October 20, 1999, October 24, 2000, and June 24, 2004 shall remain in effect as stated. // IN TESTIMONY WHEREOF,the parties have hereunto set their hands and seals this `1" day of August, 2006. CITY OF JEFFERSON, MISSOURI ALLIED SERVICES, L.L.C., DB/A MID•STATE WASTE Mayor Title: Q!0 • __w •c.\Iu wnuarA r111no,\nnkko6uAN1Y llorvmrnl.U1ML51ilr A{Immenl Amrnlln nl RfMMt wlol ` 1TP ST: ATTEST: Agn liy Clerk te:xq ut; ac & K APB D FORM: City Counselor ••C.N[)mmmt•and s•Ilinp\nn"ul•u•VAy Dmvwn•\MId91m1•Atwwnl Am mimmt M'6-%IW 'i.