Title
Consider/Discuss/Act on a Resolution Authorizing an Annual CPI-U Cost Adjustment to the Circular Services (formerly Balcones) for Recycling 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 annual contractual cost adjustment for recycling processing services provided by Circular Services (formerly Balcones Recycling Dallas, LLC). The proposed 2.66% adjustment would increase the Operating Cost component of the recycling processing fee from $53.85 to $55.28 per incoming ton, effective October 1, 2026.
BACKGROUND INFORMATION:
The City Council authorized the City Manager to execute an agreement with Balcones Recycling Dallas, LLC, now Circular Services, for recycling processing services on August 21, 2023.
The agreement has an initial term through September 30, 2039, and provides for optional renewal terms of up to five years each, with the combined renewal periods not to exceed ten additional years.
Section 14 of the agreement provides for annual adjustments to the Operating Cost component of the recycling processing fee based on the U.S. Consumer Price Index – All Urban Consumers – All Items – Unadjusted 12-month average for the Dallas-Fort Worth area.
Cost adjustments are subject to City Council approval and may not exceed 5% in any single year or a cumulative 20% over a four-year period.
Based on the applicable CPI-U calculation, Circular Services has requested a 2.66% adjustment effective October 1, 2026. The proposed adjust...
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