29 - Adopt Residential Solid Waste Collection RatesItem No. 29
Memorandum
TO: Mayor, Mayor Pro Tem & City Council
Grayson Path, City Manager
FROM: Gene Anderson, Finance Director
SUBJECT: ADOPT RESIDENTIAL SOLID WASTE COLLECTION RATES
DATE: January 22, 2024
BACKGROUND:
The City of Paris received two bids on July 10, 2023 to provide residential solid waste collection
within the City. The City Council voted August 28, 2023 to award the bid to CARDS.
STATUS OF ISSUE:
In accordance with the winning bid, the City Council needs to adopt new residential rates for this
service which is to begin February 5, 2024. The new rates are set forth in Exhibit A. These rates
consist of the CARDS rate, City Admin and Landfill Fee, and City Street Use Fee. An excerpt
from the Budget section of the 8/28/23 agenda memo has been included below as additional
information for the City Council.
BUDGET:
The CARDS rate is set by contract. The City's Admin and Landfill fee and City Street Use fee
were designed to cover City expenses that will remain after privatization of the trash service, per
the contract, takes place. While the CARDS rate is set by contract, the City's Admin and Landfill
fee, as well as the City Street Use fee should be re-examined every year as part of the budget
process to determine if it is satisfactory to cover related costs.
RECOMMENDATION:
Move to adopt an ordinance setting forth new rates for residential solid waste collection within the
City of Paris.
Excerpt from August 28, 2023 Agenda Memo
BUDGET.-
Current
UDGET:
Current Solid Waste Rates — The City currently provides residential solid waste for $16.59 / month.
We have not raised the rates in over 10 years, but instead have been "cannibalizing" the portion
going to the General Fund that assists with street maintenance in order to balance the solid waste
fund. In the Proposed FY23/24 Budget, this amount is being dropped from $210,000.00 to
$70, 000.00 which follows a similar trend in recent years. Should the City continue with its
residential trash service, rate increases will be inevitable for FY24/25 as it is foreseen that the
trend for increase in solid waste costs will not only consume the remaining portion still going to
the General Fund, but require more funding. Those rates have not been calculated.
CARDS Rates — CARDS is indeed the lower rate for residential pickup as well as overall lower
matrix for commercial dumpster. Lynn Lantrip will provide details on these rates in the
presentation.
City of Paris Administrative and Landfill Fees — Pursuant to the bid and contract, while
commercial solid waste will be billed by the third party provider (CARDS), the City will continue
to bill for residential solid waste. The primary purpose behind this is to ensure compliancy with
payment by connecting the bill to the overall utility bill for disconnect purposes. With this, so as
to prevent the Water and Sewer fund from subsidizing administrative time and expense (labor,
postage, software fees, etc.) tied to providing this service to our solid waste customers, an
administrative fee must be applied. We will also continue to have a city employee who, among
other duties, will act as a municipal liaison with the company and citizens. Our contract has
numerous terms and conditions that must be monitored and managed on a routine basis (not full-
time, but still regularly), which will be delegated to Edwayne Samis who will serve in this liaison
role. A portion of his salary should therefore come from solid waste revenue instead of General
Taxes or Water/Sewer Fund. Likewise, the City's current solid waste fund is supporting several
expenses that will continue on even after outsourcing is complete. First, the City has a long-term
contract for residential solid waste at the Blossom Landfill. The City enjoys tremendous rates
through this contract, therefore CARDS will deliver the trash to the landfill and the landfill will
continue to bill the City for payment (CARDS' rate is strictly pickup and delivery, it does not
include landfill service fees), which is estimated to be approximately $350k due to historical data.
Second, the City is continuing to work through TCEQ post -closure procedures of the old municipal
landfill on north Stillhouse Road. This is strictly a solid waste expense, and therefore the revenue
should continue to come from solid waste users, which is typically budgeted at $100k each year.
In total, we estimate needing approximately $530k annually (likely to incrementally increase over
time) to cover these costs. At this time, given the average number of accounts we have, we estimate
needing approximately $5.82/month/account to cover our estimated costs, to which we are
recommending rounding up to $6.00/month/account. This figure can change at any time by future
City Councils should we determine it to be more than enough or, not enough. However, our
recommendation is indeed $6.00/month/account (residential). City Staff will re-examine this figure
again as part of the FY24/25 Budget process in 2024.
City of Paris Street Use Fee — The City currently charges an 11 % Street Use Fee to its commercial
solid waste providers. We recommend that this continue as it too is a significant revenue stream
to the General Fund that helps subsidize street maintenance. Likewise, as the City has typically
transferred a portion of its residential solid waste revenue to the General Fund to assist with street
maintenance, we recommend that this continue and therefore an equivalent 11 % Street Use Fee
be applied to residential accounts. Heavy trash truck weight has a negative impact to roadways
and therefore this service to our citizens should help payfor the maintenance to these roads instead
of applying it against property taxes. This too can be re-examined by future City Councils and
changed at any time. City Staff will likewise re-examine this figure again as part of the FY24/25
Budget process in 2024.
In total, if we apply the CARDS residential rate, City Administrative and Landfill Fee, and Street
Use Fee, we have thefollowing:
New Rate - Residential Monthly
CARDS $ 10.29
City Admin and Landfill Fee$ 6.00
City Street Use Fee (11%) ................ $....... 7.....1.
9
Tota 1 $ 18.08
*Plus applicable tax
This represents a $1.49/month increase to residential customers. We were unable to collect
commercial dumpster information from Sanitation Solutions / Waste Connections prior to the bid
for comparison purposes. Speaking with our consultant, as well as speaking with another
community who has gone through a bid process within the last four years, our overall rate is very
competitive as many are paying $20+/month.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AMENDING SECTION APPENDIX A, "FEE SCHEDULE," ARTICLE A10.000,
"UTILITY RATES AND CHARGES," §A10.010, "RESIDENTIAL SOLID
WASTE COLLECTION," AND REPEALING §A10.011, "PICKUP OF BRUSH
OR BULKY WASTE," OF THE CODE OF ORDINANCES OF THE CITY OF
PARIS, TEXAS; MAKING OTHER FINDINGS AND PROVISIONS RELATED
TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY
CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, on August 23, 2023, after conducting a request for proposals process
compliant with state law, the City Council of the City of Paris, Texas awarded a contract for
solid waste collection, including residential solid waste collection, to CARDS Dallas, LLC;
and
WHEREAS, CARDS will assume city-wide residential solid waste collection on
February 5, 2024; and
WHEREAS, residential solid waste collection rates for both regular and bulky waste
and brush will from that date forward be determined by said contract between the city and
CARDS;and
WHEREAS, City Council wishes to repeal an existing monthly seventy cent ($0.70)
additional fee dedicated to funding the purchase of new sanitation equipment; and
WHERAS, in order to cover the city's administrative and landfill costs and to
compensate the city for the additional wear and tear on city streets occasioned by the
--operation of heavy truck traffic occasioned by solid waste collection, it is necessary for the
city to collect an administrative and landfill fee, and a street use fee in addition to the
rates charged by CARDS; and
WHEREAS, the current fee schedule for residential solid waste collection rates
should be revised accordingly;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this ordinance are hereby
in all things approved and are incorporated herein for all purposes.
Section 2. That Appendix A, "Fee Schedule," Article A10.000, "Utility Rates and
Charges," §A10.010, "Residential Solid Waste Collection," of the Code of Ordinances of the
City of Paris, Texas, be, and the same is hereby amended to read as follows:
-1-
"§ A10.010 Residential solid waste collection.
"(a) Monthh, rate., The rate for the collection and removal of garbage, rubbish, and
brush for each residential unit using or occupying any building, house or structure
or part thereof for residential purposes shall be f4teen doliaFs and eighty nine cents
($15.89) pei Enonth, plus tax: determined by contract _between the cit aaaand a
third., - part solid -waste collection, contractor and shall .wbe subject_,! l:)eriodic
increases as nrovided._for bd contract and shall be collected by the city.
«(b) Additienqloe-. An additional fee ef seventy cents ($0.70) per menth shall be charg
to each. re-sidential aceauntto fund -the -purchase -o€ new sanitatie�^
Administrative and landil!'ee An additional fee of six dollarsm 06.00 ger month
shall be char2edmmto each residential account to cover the...cily's administrative and
landfill costs accei as set forth in.sMbsection ard).
c
.... Street„use 'ee. An additional monthly fee of 11° of the total of the_.monthl rate and
administrative and landfill, fee shall be char ped to each residential account as.�a
street use fee.
(cd) Customers outside cid:v limits. The schedule of rates and charges The administrative
and landfill fee set forth in subsection bbl shall be twelve dollars ($120QJ-for
residential customers of the city that are located outside the corporate limits of the
city. shall be double the rates-spec-iffed in subsection rabove.'-'
Section 3. That Appendix A, "Fee Schedule,” Article A10.000, "Utility Rates and
Charges, §A10.011, "Pickup of Brush or Bulky Waste," is hereby repealed in its entirety.
Section 4. That all provisions of the ordinances of the City of Paris, Texas in conflict
with the provisions of this ordinance are hereby repealed, and all other provisions of the
ordinances of the City of Paris not in conflict with the provisions of this ordinance shall
remain in full force and effect.
Section 5. That the repeal of any ordinance or part of ordinances affected by the
enactment of this ordinance shall not be construed as abandoning any action now pending
under or by virtue of such ordinance or as discontinuing, abating, modifying, or altering any
penalty accruing or to accrue, or as affecting any rights of the municipality under any
section or provisions of any ordinance at the time of passage of this ordinance.
Section 6. That it is the intention of the City Council of the City of Paris that this
ordinance, and every provision hereof, shall be considered severable, and the invalidity or
partial invalidity of any section, clause, or provisions of this ordinance shall not affect the
validity of any other portion of this ordinance.
Section 7. That any person violating any provision of this ordinance shall be guilty
of a Misdemeanor, and upon conviction, shall be subject to a fine in accordance with
provisions of Sec. 1-6 of Chapter One of the City of Paris Code of Ordinances, and each and
-2-
every day's continuance of any violation of the above -enumerated sections shall constitute
and be deemed a separate offense.
Section B. That this ordinance shall become effective from and after its passage and
publication as required by law.
PASSED AND ADOPTED this 22nd day of January, 2024.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
-3-
Reginald B. Hughes, Mayor