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File #: 25-3164    Name: Annual CPI-U Cost Adjustment - Garbage and Trash
Type: Resolution Status: Consent Item
In control: City Council Regular Meeting
On agenda: 9/16/2025 Final action:
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
Attachments: 1. Resolution
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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