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Consider/Discuss/Act on a Resolution to Extend and Amend the Current License Agreement with Progressive Waste Solutions (Formerly IESI) to Include a Public-Private Partnership for Compressed Natural Gas (CNG) Fueling
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MEETING DATE: December 17, 2013
DEPARTMENT: Public Works
CONTACT: Paul Sparkman, Interim Director of Public Works
Eric Hopes, Environmental and Fleet Services Manager
RECOMMENDED CITY COUNCIL ACTION: Approve Resolution
ITEM SUMMARY:
· Progressive Waste Solutions (PWS) and the City of McKinney (City) seek to create a public-private partnership with the goal of providing McKinney residents, local businesses, the City's fleet and PWS's fleet with a compressed natural gas (CNG) vehicle fueling option.
· PWS will construct a 24-hour public access CNG fast-fill station and a private slow-fill site for PWS's incoming fleet of CNG route trucks which will include a nominal number of slow-fill dispensers for future City CNG vehicles to aid in the City's transition to CNG.
· The CNG facility will be located at PWS's North Texas Headquarters at 2138 Country Lane. It is adjacent to Simpson Strong-Tie and situated near the McKinney National Airport.
· PWS will sell CNG to the City for the duration of the agreement. City will pay "at cost" price for CNG consumption less any state taxes.
· PWS will initiate purchase of 25 new CNG route trucks for both McKinney solid waste and recycling collection operations to be phased in over a period of 3 years beginning in 2014.
· Staff endorses a CNG fueling station as being beneficial to not only the City but also the region by encouraging the broader use of CNG as a petroleum-reduction measure for government and private fleets, and for the general public.
· The City entered into a license agreement with PWS for solid waste and recycling collection on September 24, October 1996. The term of the current license agreement commenced on May 20, 2008 and expires on September 30, 2017.
· PWS seeks to extend the current license agreement from October 1, 2017 to expire on September 30, 2024 in order to recover an estimated $9 million investment.
BACKGROUND INFORMATION:
· In January 2012, the City and PWS began exploring the concept of creating a CNG collaborative as a mutually advantageous approach to initiating a long-term alternative fuel program for their respective organizations.
· PWS is McKinney's solid waste and recycling collection contractor since October 1996. The current license agreement commenced in May 2008 and is set to expire September 2017.
FINANCIAL SUMMARY:
· There are no additional costs to the City.
BOARD OR COMMISSION RECOMMENDATIONS: N/A