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Home My WebLink AboutOrdinance 0937 ORDINANCE NO. 937 AN ORDINANCE GRANTING A FRANCHISE TO SERVICE COMPANY OF AMERICA (SCA), (ESTES SERVICE COMPANY) FOR THE COLLECTION OF GARBAGE, TRASH, DEBRIS AND REFUSE WITHIN THE CORPORATE LIMITS OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SETTING FORTH THE RATES TO BE CHARGED THEREFORE; PROVIDING A FRANCHISE FOR A PERIOD OF FIVE YEARS WITH AN OPTION OF RENEWAL FOR ADDITIONAL PERIODS OF FIVE YEARS EACH: CERTAIN INSURANCE FOR THE PROTECTION OF THE GENERAL PUBLIC AND SAID CITY; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, THAT: SECTION 1. That a Franchise is hereby granted to SCA (Estes Service Company, hereinafter designated "Company", for the collection of garbage, trash, debris and refuse within the corporate limits of the City of North Richland Hills, Texas, and to the use of the streets, thoroughfares and alleys within the corporate limits of said City, subject to all of the requirements of Ordinance No. 489 known as the Garbage Disposal Ordinance of North Richland Hills. SECTION 2. Said Company shall furnish adequate equipment for the collection and disposal of such garbage, trash, debris and refuse, and shall provide service to any person, persons or corporation within the corporate limits of said City, who requests such service so long as the prescribed charges are paid by such person, persons or corporation when due. All such equipment, wherein such garbage, refuse, trash and debris is contained and hauled, shall be completely enclosed to prevent spillage thereof. SECTION 3. Said Company shall purchase and keep in full force and effect at all times liability insurance to the extent of $500,000.00 for injury to anyone person and $500,000.00 for anyone accident, and $500,000.00 property damage, and shall save and hold the said City harmless of and from any and all claims, causes of action, suits, demands and damages which are or may be asserted by any person or persons arising hereunder. SECTION 4. Company shall make at least two collections per week in the residential areas. Company shall make collections in the commercial and residential areas and may charge such rabes as he deems reasonable for such collections subject to the approval of the City Council. Rates approved will be part of this ordinance and will be attached to same. ORDINANCE NO. 937 Page 2 SECTION 5. Company shall service all complaints concerning the collection of garbage and shall maintain an office and telephone to service such complaints, and shall cause his employees to wear some identification tag that is recognizable by the customers. SECTION 6. The term of the Franchise shall be for a period of five years from the date of the passage and adoption hereof, and is not assignable without the prior approval of the City Council and may be renewed for successive terms of five years each, by mutual agreement of the parties. SECTION 7. Extra charges may be made for the pick up of more than two cans of garbage for anyone residence, except the two can limit shall not be enforced unless it is found that commerical type garbage and trash is being placed therein. The Company shall not be required to pick up burning trash or liquid. Upon application of the Company, the City may from time to time make such regulations for the type of garbage and placing of cans as may be reasonable. SECTION 8. The granting of this permit by said City to said Company shall never be construed to be exclusive not to prohibit the granting of any other such permit or permits. SECTION 9. Garbage and/or trash cans shall be placed in a location behind the front building line, front building line being defined as the front or most forward portion of the structure, but said cans must be accessible to the collector. Garbage or trash cans will not be placed within an enclosed garage. Cans may be kept within fenced yards where no condition exists to hinder or hamper the collection. Such condition or hindrance or hamperance includes, but is not limited to, dogs and inoperative gates. The Service Contractor or Company shall determine the existence of these conditions and may at his discretion require the cans be placed outside the fence. SECTION 10. With respect to collections made directly by it, the Company must provide at the end of each fiscal year an accounting of such gross receipts to substantiate the franchise paid to the City. ORDINANCE NO. 937 Page 3 SECTION 11. For the privilege of operating under this permit said Company agrees to pay to the City of North Richland Hills, Texas, an amount equal to 2% of the gross receipts from the collection of garbage, trash, rubbish and refuse within the corporate limits of the City of North Richland Hills, Texas, which amount shall be paid monthly to, or in the case of collection made by the City, retained by, the City Secretary, such payment to be made on or before the 25th of the succeeding month. SECTION 12. The City of North Richland Hills, does hereby reserve an option during this franchise or any renewal to accept the responsibility for billing and collecting garbage bills owed to the Company. If such option is executed and the City of North Richland Hills accepts the responsibility, then at the time of billing, or within fifteen (15) days thereafter, the City of North Richland Hills will remit to the Company its check in the amount of 90% of the collection. The 10% not remitted shall become the property of the City of North Richland Hills, (8% for billing and collection and 2% for franchise charge). Any billing that the City may do for the garbage service outside the city limits of North Richland Hills, the City will negotiate with the Company to determine the amount to be charged for this service. SECTION 13. In the event of the breach by said Company of any of the terms and conditions herein contained or of the requirements of the "Garbage Ordinance of North Richland Hills", being Ordinance No. 489 of said City, the City of North Richland Hills, Texas, shall notify the Company of such breach, and if not cured within a period of fifteen (15) days from such notice, the City, at its option, may cancel this permit or cause the condition to be corrected, the cost of which shall be born by the Company. SECTION 14. That should any part, portion, section, clause or provlslon hereof for any reason be held invalid or unconstitutional, such holding shall not in any manner affect or invalidate the remaining parts, portions, sections, clauses and provisions hereof, but the same shall remain in full force and effect. ORDINANCE NO. 937 Page 4 SECTION 15. That this Ordinance shall become effective on the 1st day of February, 1982, following its passage and adoption. PASSED AND ADOPTED on this 25th day of January ,1982. ''JJ!;r ,,,,,-dulhr/ Diçk Faram, Mayor ATTEST: C;:;~orf!t{t~retarY APPROVED ~O FORM AND Rex MCEn~~~rneY ACCEPTED: Service Company of America (Estes Service Company) By:~fElfP:iî )#~ ~. SERVICES SCA SERVICES OF FORT WORTH REVENUE AND COST ANALYSIS CITY OF NORTH RICHLAND HILLS Average Increases Requested Commercial - Front Loader Commercial - Roll Off Residential ($4.90 per month) 21. 5% ok 15.3% * Requires verbal discussion of recommended rates. Projected Revenue from City Operations (After Requested Increases) Commercial - Front Loader ($245,496 x 1.215%) Commercial - Roll Off Residential ($417,972 x 1.153%) $298,277.64 92,012.34 481,921. 72 $862,211. 70 Projected Operational Results Total Projected Revenue Total Projected Costs (at current costs) Pre-Tax Profit $862,211. 70 (800,121. 60) 62,090.10 ok Percent of Revenue Return on" Investment 7 . 2% ~" 6.4% * .,'( Please note that these amounts and percentages are based on profits prior to payment of taxes on income. Note: The net billing for residential service is $4.41 per month. This is the result of the City deducting 10% for billing, collection and franchise fees from the gross rate of $4.90 per month. - en 0 ~~ 0 Hµ':¡ 0 ::> 0 0 0 0 ~~ 0 0 0 0 0 r-I 'tJ) <J'}- µ :><:P::: ..::t l/') ,...... N ~ Q) ~ Hµ':¡ CO 'N 0\.0 0 l/') Q) J:: :::>~ :::> 0 0 0 en~ r-I M N N U 'r-! IC-' 0 ::::> 0 0 -r-! C'CI ~p::: " ~ . . , :> .w u<: ,...... N ,...... N µ ¡:: H:I:: ,...... 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Insuranca is afforded only with respect to thoHcoverages lor which a specific limit of liability hat been entered and is subject 10 all the terms of the Policy having ref_nee thereto inCluding Umbrella Excass Third Party Llabllily Insurance a provision requiring the maintenance ot underlying insurance or seif insurance. This CertIficate of Insurance neither affirmatively nor negatively .mends, extends or allers Ihe coverage aforded under any policy identified herein. SCA SERVICBS, INCe NAME AND ADDRESS OF INSURED SCA Services of Fort ì.Jorth, Inc. P.O. Box 7616 Fort Worth, Texas 76111 NAME AND ADDRESS OF CERTlFICA TE HOLDER ICi ty of North Richland Hills P.O. Box 13609 North Richland Hills, Texas 76118 "I DATE OF CERTIFICATE ISSUANCE c)~~;.;º~ L ~ Type of Insurance Policy No. Exp. Date Limits of Liability Workmen's Compensation Employers'Liability we 005432733 we 005432734 1/1/83 1/1/83 Statutory $ 100,000 Comprehensive General Liabi lity CCP 005312610 1/1/83 $500,000 C.S.L. BODILY INJURY & PROPERTY DAMAGE Comprehensive Automobile Liability BUA 00463 6943 MP 4055333 1/1/83 1/1/83 $500,000 C.S.L. BODILY INJURY & PROPERTY DAMAGE Trash and Refuse Removal and Disposal Description and location of operations of the Insured: All operations of the Insured In the event of cancellation of this insurance the Company agrees to give ten days written notice to the party at whose request this certificate is issued. G·66168-A