HomeMy WebLinkAboutPO 6518: AMENDING SECTION 86-114 (COMMERCIAL REFUSE) City of Ety
CiP.O. No. 6518
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INTEROFFICE MEMORANDUM
WATER UTILITIES DEPARTMENT-ADMINISTRATION
Date: January 5, 2016
To: Brian McDougal, City Manager
From: Jimmie Johnson, Ph.D., Director of Water Utilitie
RE: Proposed Ordinance No. 6518
Nature of the Request:
City Council approval of Proposed Ordinance No. 6518 amending Section 86-114
(Commercial Refuse) of the Code of Ordinances by increasing the Commercial Service
monthly rates.
Staff Analysis, Considerations:
The staff conducted a survey of area waste haulers that provide commercial container service.
It was found that the current rates for Commercial Container service is an average of 65%
below the lowest private hauler in the area. These rates were last adjusted in 2008. Costs of
the operation have continued to rise due to inflation without the rates maintaining the same
increase. Increasing the current rates by 25% will bring an additional $194,569 in revenue
over a 12 month period. In order to lessen the burden on local businesses, the increase to the
market rate is proposed to be done gradually and reviewed on an annual basis. Attached is a
chart showing the proposed rate increases with projected revenue and the survey data.
Recommendation:
I recommend that the City Council adopt Proposed Ordinance No. 6518, which will increase
the Commercial Container Service rates by 25%.
Budget Considerations:
Approval of the rate increase will add $194,569 in additional revenue for the Solid Waste Fund.
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Proposed Rate Changes
PU Projected
Per Total Current Proposed Current Monthly Revenue with
Size Week Customers Rate Rate Revenue 25% Increase
2 CY 1 43 $39.32 $49.15 $1,690.76 $2,113.45
2 CY 2 8 $78.65 $98.31 $629.20 $786.48
2 CY 3 1 $107.69 $134.61 $107.69 $134.61
4 CY 1 129 $50.82 $63.53 $6,555.78 $8,195.37
4 CY 2 57 $101.64 $127.05 $5,793.48 $7,241.85
4 CY 3 11 $145.20 $181.50 $1,597.20 $1,996.50
4 CY 5 1 $246.84 $308.55 $246.84 $308.55
8 CY 1 190 $76.23 $95.29 $14,483.70 $18,105.10
8 CY 2 109 $152.46 $190.58 $16,618.14 $20,773.22
8 CY 3 30 $223.85 $279.81 $6,715.50 $8,394.30
8 CY 4 12 $304.92 $381.15 $3,659.04 $4,573.80
8 CY 5 10 $376.31 $470.39 $3,763.10 $4,703.90
8 CY 6 7 $427.13 $533.91 $2,989.91 $3,737.37
Total Monthly Revenue $64,850.34 $81,064.50
Current Annual Revenue from Commercial
rates: $778,204.08
Annual Revenue with 25%
increase: $972,774.00
This data does not include multi-unit dwelling rates which are billed differently.
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Survey of Area Waste Haulers
Monthly Charge Per Container
City of Lowest private
Container PU Per Port Waste Republic hauler%above
Size CY Week Arthur Management Services Progressive PA rate
2 1 $39.32 $118.18 $120.00 $77.00 95.83%
2 2 $78.65 $197.26 $207.00 $107.00 36.05%
4 1 $50.82 $132.26 $150.00 $90.00 77.10%
4 2 $101.64 $221.90 $235.00 $165.00 62.34%
8 1 $76.23 $193.70 $230.00 $133.00 7447%
8 2 $152.46 $329.41 $330.00 $225.00 47.58%
Average percentage of lowest private hauler
rates above Port Arthur's: 65.56%
Unable to get most of the rates for more than 2 pickups per week. More than 2 pickups
per week is considered a "Heavy Generator"which requires a salesperson to visit the site
and create a site specific contract.
P. O. No. 6518
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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 BY TWENTY FIVE PERCENT; 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 as follows:
Container Size Pickups Per Week Monthly Charge
Cubic Yards Per Container
2 1 $49.15
2 2 $98.31
2 3 $134.61
2 6 $260.12
4 1 $63.53
4 2 $127.05
4 3 $181.50
4 5 $308.55
4 6 $347.88
8 1 $95.29
8 2 $190.58
8 3 $279.81
8 4 $381.15
8 5 $470.39
8 6 $533.91
10 2 $238.23
10 3 $349.78
10 6 $667.40
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
February 1, 2016.
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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
2016 at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote:
AYES: Mayor
Councilmembers:
NOES:
Deloris Prince
Mayor
ATTEST: APPROVED FOR ADMINISTRATION:
Sherri Bellard Brian McDougal
City Secretary City Manager
APPROVED AS TO FORM:
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Valecia Tizeno0 Dr. Jimmie Johnson, PhD
City Attorney Director of Water Utilities