Title
Consider/Discuss/Act on a Resolution Authorizing an Annual Consumer Price Index-Urban Consumer (CPI-U) Cost Adjustment to Balcones Recycling Dallas, LLC 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 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 Balcones Recycling Dallas, LLC for recycling processing services.
BACKGROUND INFORMATION:
* The City Council authorized the City Manager to execute an agreement for recycling processing services with Balcones on August 21, 2023.
* Balcones contract for recycling processing services will have an initial term through September 30, 2039, with one or more optional five (5) year renewal terms, not to exceed a combined total of ten (10) additional years.
* The initial term and any renewal periods shall not exceed a total duration of twenty-five (25) years, or by September 30, 2049.
* Balcones contract provides cost adjustments based on 70% of the year-over-year change in the average value of the U.S. Consumer Price Index (CPI-U): All Urban Consumers - All Items not to exceed 5% in any single year nor exceed a cumulative increase of 20% over a four-year period.
FINANCIAL SUMMARY:
* Balcones is requesting a 1.61% adjustment to its recycling processing contract with the City of McKinney, effective October 1, 2025.
* This adjustment, based on the annual CPI-U: All Urban Consumers - All Items, will increase the operating processing cost from $53.00 to $53.85 per ton.
* Funding is available in ...
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