Title
Consider/Discuss/Act on a Resolution Authorizing the First Optional Renewal Term and Annual CPI-U Cost Adjustment 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 15, 2026
DEPARTMENT: Public Works
CONTACT: Steve Tilton, Assistant City Manager
Ryan Gillingham, Public Works Director
Eric Hopes, Senior Environmental Services Manager
RECOMMENDED CITY COUNCIL ACTION: Approval of Resolution
ITEM SUMMARY:
This resolution authorizes the City to exercise the First Optional Renewal Term with the LETCO Group, LLC dba Living Earth from October 1, 2026, through September 30, 2027, and approves a 4.2% annual CPI-U cost adjustment for organic waste processing services effective October 1, 2026.
BACKGROUND INFORMATION:
The City Council authorized the City Manager to execute an agreement with LETCO Group, LLC dba Living Earth for organic waste processing services on November 7, 2023.
The agreement’s Initial Term continues through September 30, 2026, and provides for four one-year Optional Renewal Terms through September 30, 2030. Each Optional Renewal Term may be exercised at the City’s sole discretion. The First Optional Renewal Term is October 1, 2026, through September 30, 2027.
The adjustment is based on the year-over-year change in the average U.S. Consumer Price Index: Urban Consumer - Garbage and Trash Collection for the 12-month period ending in September and is capped at 5% in any single year and 20% cumulatively over a four-year period.
FINANCIAL SUMMARY:
LETCO has requested a 4.2% cost adjustment for organic waste processing services, effective October 1, 2026, concurrent with the First Optional Renewal Term.
With the 4.2% adjustment,...
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