Title
Consider/Discuss/Act on an Ordinance Amending Appendix A - Schedule of Fees of the Code of Ordinances of the City of McKinney with Amended Fees for Collection and Disposal of Solid Waste and Recyclable Material in the City; Providing for the Repeal of Conflicting Ordinances; Providing for a Severability Clause; and Providing for an Effective Date
Summary
COUNCIL GOAL: Operational Excellence
(2B: Balance Available resources to accommodate the growth and maintenance needs of the city)
MEETING DATE: December 20, 2022
DEPARTMENT: City Manager’s Office
CONTACT: Steve Tilton, Assistant City Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approve ordinance
ITEM SUMMARY:
Solid Waste
• The ordinance would approve a “pass through” of the year three (3) commercial fee changes (5 %) related to the City’s solid waste & recycling services as part of an amendment to the City’s agreement with Waste Connections, Lone Star, LLC. The amendment was approved at the May 4, 2021, City Council meeting.
• The ordinance would also approve the residential service cost “pass through” of the 2022 and 2023 Consumer Price Index (CPI) adjustments allowed as part of the amendment. The cumulative total of these CPI increases is 9.81% or $.96 per month.
• The original amendment allowed for the following increases to two (2) different components of the agreement:
o Residential Collection: $1.60 increase per month per home (and subsequent CPI increases)
o Commercial Collection: 25% increase over three-year period (10%, 10% and 5%).
• The amendment also allows for potential increases to the downtown (central business district) rates, as may be directed by the City Council in the future.
• Waste Connections was required to increase their performance bond from $1,000,000 to $2,000,000.
• Waste Connections will no longer be required to make a minimum recycling revenue payment to the City.
BACKGROUND INFORMATION:
Solid Waste
• Relationship with original company (IESI/Progressive Waste Solutions) dates back to 1996. (Through subsequent mergers and acquisitions, parent company is now Waste Connections.)
• Current contract agreement executed in 2008 with termination in September 2017, amended in 2013 extending expiration date to September 30, 2024.
• 2016 - Waste Connections merged with Progressive Waste Solutions and Waste Connections took over management of the agreement.
• 2018 (Feb.) - City receives request from Waste Connections for rate increases. (Similar request made to Frisco, another full-service customer of Waste Connections)
• 2018 (March) - Per Council direction, City retains services of Burns & McDonnell to analyze the request and provide a market perspective/recommendation.
• 2018/2019 - Staff and BKD (Audit Firm) conduct financial review/assessment.
• May 4, 2021 - City Council approves amended agreement with Waste Connections.
FINANCIAL SUMMARY:
Solid Waste
• The ordinance allows for the “pass through” of the year three (3) commercial increases (5%).and the residential CPI (9.81% total combined for 2022 and 2023)
BOARD OR COMMISSION RECOMMENDATION:
• N/A