Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Contract with The Letco Group, LLC dba Living Earth for Organic Waste Processing Services
Summary
COUNCIL GOAL: Operational Excellence
(2B: Balance Available Resources to Accommodate the Growth and Maintenance Needs of the City);
Enhance the Quality of Life on McKinney
(5E: Develop sustainable quality of life improvements in the City of McKinney)
MEETING DATE: November 7, 2023
DEPARTMENT: Public Works
CONTACT: Steve Tilton, Assistant City Manager
Ryan Gillingham, Public Works Director
Eric Hopes, Environmental Services Manager
Ian Coubrough, Asst. Procurement Services Manager
RECOMMENDED CITY COUNCIL ACTION: Approval of Resolution
ITEM SUMMARY:
This resolution authorizes the City Manager to enter into a contract with The LETCO Group, LLC for organic waste processing services.
BACKGROUND INFORMATION:
• Texas Pure reported it is operating at a deficit and the ILA with NTMWD and MOU with member cities must be modified to address the deficit.
• Texas Pure set higher yard waste diversion rates based on revenues and expenditures, and therefore the City decided to seek bids in the commercial market for the same services.
• Chapter 791 of the Texas Government Code authorizes and encourages government agencies, including municipalities, to contract with one another to increase efficiency and effectiveness.
• In collaboration with the City of McKinney and the City of Allen, on July 16, 2023, the City of Frisco issued a Request for Proposals NO. 2307-084 soliciting proposals from qualified organic waste processing providers.
• Two proposals were received on August 8, 2023 from The LETCO Group, LLC and TOR Texas, LLC dba The Organic Recycler.
• Both respondents were invited to negotiations and to submit final proposals for evaluation for award or rejection by each City, individually or jointly.
• After evaluation of both respondents’ final proposals, staff is recommending award to The LETCO Group, LLC and is seeking Council’s approval to authorize the City Manager to execute the contract.
• McKinney will continue to partially participate in the regional yard waste program by allowing residential drop-off only.
• Living Earth’s contract for organic waste processing services initial term will continue through September 30th, 2026, with four one (1) year optional term extensions through September 30, 2030.
FINANCIAL SUMMARY:
• Curbside hauling is $30 per ton for 0-5,000 tons and $29 per ton for 5,000+ tons.
• Residential drop-off is $13 per vehicle.
• Per ton rates will increase based on annual CPI-U throughout the duration of the initial term and subsequent optional terms.
• Funding is available in account 007-4405-503-8516
BOARD OR COMMISSION RECOMMENDATION: N/A