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 19, 2023
DEPARTMENT: City Manager’s Office
CONTACT: Steve Tilton, Assistant City Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approve ordinance
ITEM SUMMARY:
• The ordinance would approve the residential service cost “pass through” of the 2024 Consumer Price Index (CPI) adjustments allowed as part of the amendment.
• The cumulative total of these CPI increases is 6.50% or $0.69 per month 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 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%).
BACKGROUND INFORMATION:
• Relationship with original company (IESI/Progressive Waste/Waste Connections) 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:
• Ordinance allows for the “pass through” of the residential CPI increase of 6.50%
BOARD OR COMMISSION RECOMMENDATION:
• N/A