HomeMy WebLinkAboutPO 6627: AMENDING SECTION 86-114 (COMMERCIAL REFUSE) P.O. 6627
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City of
() thur
Texas
INTEROFFICE MEMORANDUM
Date: August 7, 2017
To: Brian McDougal, City Manager
From: Jimmie Johnson, Ph.D., Assistant CityMana
g
ff
RE: Proposed Ordinance No. 6627
Introduction:
The intent of this Agenda Item is to seek the City Council's approval for the City Manager to adopt an
Ordinance amendment which will increase revenue and improve commercial trash service to our city.
Background:
Recent survey has revealed that current commercial container service rates are substantially lower than
that of area and similar size cities(averaging 49% less). The Regional Commercial Rates Comparisons
Survey highlights the results of these June,2017 findings(see Exhibit B).
The Solid Waste Division has been functioning at a deficit for several years. Equipment replacement in
the Solid Waste Division is necessary in order to service our communities in a more adequate and
timely manner. The increase in revenue, made possible by this Ordinance amendment, will greatly
assist towards these endeavors.
Budget Impact:
Adoption of this Ordinance amendment will tremendously increase revenue for the City of Port Arthur.
The anticipated increase in revenue will have minimal impact on expenses (letters to commercial
customers,website notices,etc.).
Recommendation:
Staff is requesting City Council to amend Subsection (a) (1) of Section 86-114, Commercial Refuse-
Regular Service of Article IV (Fees), with changes to commercial container service rates to be
increased to 97% of lowest charge in region for commercial rates, over a three-year period, 33%
increase each year(third year, 34% increase).
"Remember, we are here to serve the citizens of Port Arthur"
P.O. 6627
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ORDINANCE NO.
AN ORDINANCE AMENDING SECTION 86-114
(COMMERCIAL REFUSE) OF THE CODE OF
ORDINANCES, CITY OF PORT ARTHUR, TEXAS, BY
INCREASING THE COMMERCIAL CONTAINER
SERVICE RATES TO 97% OF LOWEST CHARGE IN
REGION FOR COMMERCIAL CONTAINER RATES,
OVER A THREE YEAR PERIOD,33% INCREASE EACH
YEAR (THIRD YEAR, 34%) ; AND PROVIDING FOR AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
Section 1. That Subsection(a) (1) of Section 86-114, Commercial Refuse-Regular
Service of Article IV (Fees) is hereby amended in substantially the same form as Exhibit"A".
Section 2. The above provisions are all to be inserted in the affected Code of
Ordinances, City of Port Arthur, Texas, in the sequence required by their designation.
Section 3. All Ordinances and parts of Ordinances in conflict with this Ordinance are
hereby repealed to the extent of the conflict.
Section 4. That this being an Ordinance not requiring publication, it shall be effective
on October 1, 2017.
Section 5. That a copy of the caption of the Ordinance be spread upon the Minutes of
the City Council.
READ, ADOPTED, AND APPROVED THIS day of
2017 at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote:
AYES: Mayor
Councilmembers:
NOES:
P. O. No. 6627
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Derrick Freeman
Mayor
ATTEST: APPROVED FOR ADMINISTRATION:
Sherri Bellard Brian McDougal
City Secretary City Manager
APPROVED AS TO FORM:
\ cri 4 4 •
Valecia Ti eno Dr. Jimmie Johnson, Ph.D.
City Attorney Assistant City Manager
EXHIBIT "A"
(Commercial Refuse-Regular Service Fees)
Sec. 86-114.-Commercial refuse.
(a) Regular service.
(1)Commercial premises (excluded from this rate charge are multiple dwelling complexes
such as trailer parks and apartment units) will receive sanitation container system service
for removal of trash and garbage under the rates hereinafter set forth, as routes for such
services are established by the city. All institutions, on-hand service, will be required to
change to container service when the solid waste superintendent shall deem necessary
and the containers are made available by the solid waste department. Under this system,
the City of Port Arthur will furnish containers of proper size for ample storage between
collections. Charges will be made for the service according to the size of the container
and the number of weekly pickups as follows:
PROPOSED
Commercial Refuse-Regular Service Fees
Container
Size Pickups Year One Year Two Year Three Old Monthly
Cubic Per Week 33% Increase 33% Increase 34% Increase Charge
Yards
2 1 $ 62.73 $ 76.32 $ 90.31 /19.15
2 2 $116.16 $134.00 $152.39 98.31
2 3 $160.96 $187.32 $214.47 134.61
2 6 $306.51 $352.91 $400.71 260.12
4 1 $ 76.09 $ 88.65 $101.59 63.53
4 2 $142.86 $158.67 $174.96 127.05
4 3 $203.55 $225.61 $248.33 40
4 5 $337.10 $365.65 $395.07 308.55
4 6 $387.66 $427.45 $468.44 317.88
8 1 $108.54 $121.80 $135.45 95.29
8 2 $202.19 $213.80 $225.76 190.58
8 3 $291.77 $303.74 $316.06 279.81
8 4 $389.47 $397.80 $406.37 381.15
8 5 $479.07 $487.74 $496.68 /170.39
8 6 $551.43 $568.94 $586.99 533.91
EXHIBIT "B"
(Regional Commercial Rates Comparisons)
Regional Commercial Rates Comparisons
1.To recalculate original rate increase
City of Port
Container Size
CY PU Per Week Arthur %increase $increase Current rate
Original Rate
2 1 $ 39.32 25% $ 9.83 $ 49.15
2 2 $ 78.65 25% $ 19.66 $ 98.31
4 1 $ 50.82 25% $ 12.71 $ 63.53
4 2 $ 101.64 25% $ 25.41 $ 127.05
8 1 $ 76.23 25% $ 19.06 $ 95.29
8 2 $ 152.46 25% $ 38.12 $ 190.58
2.Survey Results
Regional Commercial Rates Survey
Monthly Charge Per Container Difference between
Lowest Price and
Container Size PU/Week CPA aste'Management Republic Services - Progressive Port Arthur
2 1 $49.15 118.18 $ 114.26 $ 93.10 $ 43.95
2 2 $98.31 ' $ 202.34 $ 157.10 $ 58.79
4 1 $63.53 $ 132.26 $ 104.73 $ 41.20
4 2 $127.05 $ 227.73 $ 180.37 $ 53.32
8 1 $95.29 193.7. $ 173.16 $ 139.64 $ 44.35
8 2 $190.58 329.41 $ 314.86 $ 232.74 $ 42.16
ed-Highest Price Yellow-Middle of the road Green-Best Price
3.To calculate average%increase
Container Size
CY PU Per Week Current rate %increase $increase Target$
2 1 $ 49.15 84% $ 41.16 $ 90.31
2 2 $ 98.31 55% $ 54.07 $ 152.39
4 1 $ 63.53 60% $ 38.06 $ 101.59
4 2 $ 127.05 38% $ 47.91 $ 174.96
8 1 $ 95.29 42% $ 40.16 $ 135.45
8 2 $ 190.58 18% $ 35.18 $ 225.76
Average%+ 49%
Table 4. Potential Revenue Table by Container/Pickup
% of Rates or Extrapolation
Container Size C\PU Per Week % of Base Number of Containers 97
2 1 7% 37 $ 3,341.36
2 2 2% 8 $ 1,219.10
2 3 $ -
2 6 $ -
4 1 17% 91 $ 9,244.52
4 2 8% 43 $ 7,523.23
4 3 3% 14 $ 3,476.62
4 5 $ -
4 6 0% 1 $ 468.44
8 1 16% 83 $ 11,242.42
8 2 23% 119 $ 26,865.18
8 3 11% 56 $ 17,699.63
8 4 2% 9 $ 3,657.35
8 5 6% 33 $ 16,390.40
8 6 5% 28 $ 16,435.60_
Table 4a. Potential Revenue Breakdown
%of Rates or Extrapolation
Container Size CYPU Per Week CPA Target Progressive 97
2 1 $ 90.00 $ 93.10 $ 90.31
2 2 $ 151.87 $ 157.10 $ 152.39
2 3 $ 221.10 N/A $ 214.47
2 6 $ 413.10 N/A $ 400.71
4 1 $ 101.24 $ 104.73 $ 101.59
4 2 $ 174.36 $ 180.37 $ 174.96
4 3 $ 256.01 N/A $ 248.33
4 5 $ 407.29 N/A $ 395.07
4 6 $ 482.93 N/A $ 468.44
8 1 $ 134.99 $ 139.64 $ 135.45
8 2 $ 224.99 $ 232.74 $ 225.76
8 3 $ 325.84 N/A $ 316.06
8 4 $ 418.94 N/A $ 406.37
8 5 $ 512.04 N/A $ 496.68
8 6 $ 605.14 N/A $ 586.99
Potential Monthly Revenue Increase: 22,226
Potential Annually Revenue Increase: 266,71
Total Potential Monthly Revenue: 3.84
Total Potential Annually Revenue: , i,766.0
Projected Monthly
Projected Annual 5, '...02
Current Monthly $ 95,337.50
Current Annual $ 1,144,050.00
Net Monthly Increase
Net Annual Increase
2017-2018 2018-2019 2019-2020
Phase I Phase II Phase III
$ 102,672.19 $ 110,006.88 $ 117,563.84
$ 1,232,066.29 $ 1,320,082.57 $ 1,410,766.02