Title
Consider/Discuss/Act on a Resolution Authorizing an Annual Consumer Price Index-Urban Consumer (CPI-U) Cost Adjustment for Garbage and Trash Collection to the LETCO Group, LLC dba Living Earth for Organic Waste Processing Services
Summary
COUNCIL GOAL: Operational Excellence
(2A: Balance Available Resources to Accommodate the Growth and Maintenance Needs of the City);
Enhance the Quality of Life on McKinney
(5C: Develop sustainable quality of life improvements in the City of McKinney)
MEETING DATE: September 16, 2025
DEPARTMENT: Public Works
CONTACT: Steve Tilton, Assistant City Manager
Ryan Gillingham, Public Works Director
Eric Hopes, Sr. Environmental Services Manager
RECOMMENDED CITY COUNCIL ACTION: Approval of Resolution
ITEM SUMMARY:
This resolution authorizes an annual CPI-U cost adjustment to the LETCO Group, LLC dba Living Earth for organic waste processing services.
BACKGROUND INFORMATION:
• The City Council authorized the City Manager to execute an agreement for organic waste processing services with LETCO Group, LLC dba Living Earth on November 7, 2023.
• LETCO’s contract for organic waste processing services initial term will continue through September 30th, 2026, with four one (1) year optional term extension through September 30, 2030.
• LETCO’s contract provides cost adjustments based on the U.S. Consumer Price Index: Urban Consumer – Garbage and Trash Collection not to exceed 5% in any single year nor exceed a cumulative increase of 20% over a four-year period.
• For the most recent 12-month period, CPI-U exceeds 5%.
FINANCIAL SUMMARY:
• In accordance with the agreement, the LETCO Group, LLC dba Living Earth requests a 5% cost adjustment to the agreement with the City of McKinney for the processing of organic waste to be effective October 1, 2025.
• Per ton rates will increase based on annual CPI-U for curbside hauling from $31.50 to $33.08 per ton 0-5,000 tons and from $30.45 to $32.08 per ton for 5,000+ tons.
• As a comparison, the cost to dispose of organic waste with Texas Pure is $39.28 per ton. Using LETCO for diversion services continue to represent a cost saving to the city as compared to Texas Pure.
• Funding is available in account 007-4405-503-8516.
BOARD OR COMMISSION RECOMMENDATION: N/A