HomeMy WebLinkAboutCouncil Resolutions 1591 RESOLUTION NO. /S°1 I
A RESOLUTION APPROVING THE FOURTH ADDENDUM TO SOLID
WASTE COLLECTION FRANCHISE AGREEMENT
RECITALS:
A. City of Central Point has previously entered into a Solid Waste Collection
Franchise Agreement dated July 18, with Rogue Disposal & Recycling, Inc., an
Oregon Corporation.
B. The City recognizes that the CPI formula in Solid Waste Collection Franchise
Agreement should be amended to better track cost changes of Contractor.
THE CITY OF CENTRAL POINT RESOLVES AS FOLLOWS:
Section 1. The City Council of the City of Central Point, Oregon, does hereby authorize the
Fourth Addendum to the Solid Waste Collection Franchise Agreement with Contractor attached
to this resolution.
Passed by the Council and signed by me in authentication of its passage this / day of
.Sk.0 , 2019.
. 1./evni ar4e
Mayor Hank Williams
ATTES
'i,Ql!('?L /
Deanna Casey, ity Ri der
Draft 6/25/2019
FOURTH ADDENDUM TO SOLID WASTE COLLECTION
FRANCHISE AGREEMENT
THIS FOURTH ADDENDUM TO SOLID WASTE COLLECTION FRANCHISE
AGREEMENT ("Addendum") is made and entered into this day of , 2019, amends that certain
SOLID WASTE COLLECTION FRANCHISE AGREEMENT dated July 18, 1996 (the
"Agreement"), between the CITY OF CENTRAL POINT, a political subdivision of the State of Oregon
hereinafter referred to as ("City,") and ROGUE DISPOSAL & RECYCLING, INC., an Oregon
Corporation,hereinafter referred to as("Contractor').
RECITALS
WHEREAS the parties have agreed to a modification to the Agreement on the terms and
conditions as set forth below.
NOW THEREFORE in consideration of the mutual covenants, agreements, and conditions
contained herein the parties agree as follows:
1. Section 7.5 of the Franchise Agreement is amended to read in its entirety as follows:
7.5 Annual Adjustment of Approved Service Rate Schedule
On each Anniversary Date (other than an Anniversary Date that is immediately preceded
by a Fifth Anniversary Rate Review), commencing with the Anniversary Date that falls on
January 1, 1998, there shall be an annual adjustment of the Approved Service Rate
Schedule pursuant to and in accordance with this Section 7.5. If the City and the Contractor
agree, the annual adjustment pursuant to this Section 7.5 may be waived for any year.
Unless such annual adjustment for a given year is waived by the Contractor and the City,
the Contractor shall be required to deliver to the City, not less than 120 days prior to such
Anniversary Date, a detailed calculation of the adjustment to each Rate Category Rate in
the Approved Service Rate Schedule then in effect calculated in accordance with the
Annual Rate Adjustment Formula set forth in this Section 7.5,together with all supporting
information. The City Administrator shall review such information and not less than 90
days prior to the related Anniversary Date, the City shall inform the Contractor as to
whether or not it agrees with the Contractor's calculation of such adjustment. The City shall
specify to the Contractor in writing the particulars of any disagreement with the
Contractor's calculation of such adjustment, and the City and Contractor shall meet in order
to resolve any such differences. Effective as of each Anniversary Date for which an annual
adjustment is made pursuant to this Section 7.5, each Rate Category Rate in the Approved
Service Rate Schedule shall be adjusted in accordance with the Annual Rate Adjustment
Formula set forth in this Section 7.5.
For purposes of this Section 7.5, the Annual Rate Adjustment Formula for each Rate
Category Rate shall be as follows:
ARCR = (RCR multiplied by CPIC)plus RCR
RCR = the service rate for a particular Rate Category as set forth in
the Approved Service Rate Schedule in effect immediately
FOURTH ADDENDUM TO SOLID WASTE COLLECTION FRANCHISE AGREEMENT
Page 1 of 3
Draft 6/25/2019
prior to the Anniversary Date.
CPIC = the sum of
a) 5.6% times the percentage increase or decrease in the "Consumer
Price Index for all Urban Consumers: Motor vehicle maintenance
and repair (CUSR0000SETD)" as reported by the U.S. Bureau of
Labor Statistics as published for April of the current year and the
same index as published for April of the immediately preceding
year;plus
b) 5.7% times the percentage increase or decrease in the "Producer
Price Index for Motor Vehicle Manufacturing (PCU33613361)" as
reported by the U.S. Bureau of Labor Statistics as published for
April of the current year and the same index as published for April
of the immediately preceding year;plus
c) 32.3% times the percentage increase or decrease in the
"Compensation of Employees, Received: Wage and Salary
Disbursements: Private Industries (A132RC1)" as reported by the
U.S. Bureau of Economic Analysis as published for April of the
current year and the same index as published for April of the
immediately preceding year;plus
d) 56.5%times the percentage increase or decrease in the "CPI for all
Urban Consumers(CPIAUCSL)" as reported by the U.S. Bureau of
Labor Statistics as published for April of the current year and the
same index as published for April of the immediately preceding
year;
provided that:
(i) if the Approved Service Rate Schedule has been adjusted
pursuant to a Requested Rate Review or a Special Rate Review
since the last annual adjustment of the Approved Service Rate
Schedule pursuant to this Section 7.5,then the percentage change
(increase or decrease)for each of the indexes listed above shall
be based on the relevant index published in April of the current
year and the month immediately prior to the date upon which the
Approved Service Rate Schedule was adjusted pursuant to such
Requested Rate Review or Special Rate Review;
(ii) CPIC will be rounded to two(2)decimal places;
(iii)any adjustment under this Section 7.5 to be effective January 1,
2020 shall be based on the percentage change(increase or
decrease)for each of the indexes listed above published for April
2019 and August 2018;and
(iv)provided further that if any of the indexes listed above shall be
discontinued or have a material change in the method of its
FOURTH ADDENDUM TO SOLID WASTE COLLECTION FRANCHISE AGREEMENT
Page 2 of 3
Draft 6/25/2019
calculation the City Administrator and Contractor shall meet in
order to determine which(in the case of discontinuance) index
will be used in substitution or whether(in the case of a material
change)a different index should be utilized.
ARCR = the RCR as adjusted pursuant to the Annual Rate Adjustment
Formula
2. Except as modified and amended herein the Franchise Addendum, dated June 6, 1996,
shall be and remains in full force and effect.
EXECUTED as of the day and year first above written.
OPERATOR:
ROGUE DISPOSAL&RECYCLING, INC.
an Oregon corporation
By:
Stephen Gambee, Chief Executive Officer
CITY OF CENTRAL POINT
By:
Hank Williams,Mayor
Attest by:
Deanna Casey,City Recorder
Approved as to Form:
Attorney for the City of Central Point
FOURTH ADDENDUM TO SOLID WASTE COLLECTION FRANCHISE AGREEMENT
Page 3 of 3