Title
Consider/Discuss/Act on a Resolution Authorizing an Annual CPI-U Cost Adjustment to the LETCO Group, LLC dba Living Earth for Organic Waste Processing Services
Summary
COUNCIL GOAL: Operational Excellence
(2B: Balance Available Resources to Accommodate the Growth and Maintenance Needs of the City);
Enhance the Quality of Life on McKinney
(5E: Develop sustainable quality of life improvements in the City of McKinney)
MEETING DATE: September 3, 2023
DEPARTMENT: Public Works
CONTACT: Steve Tilton, Assistant City Manager
Ryan Gillingham, Public Works Director
Eric Hopes, Environmental Services Manager
RECOMMENDED CITY COUNCIL ACTION: Approval of Resolution
ITEM SUMMARY:
This resolution authorizes an annual Consumer Price Index for All Urban Consumers (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.
• Living Earth’s contract for organic waste processing services initial term will continue through September 30, 2026, with four one (1) year optional term extension through September 30, 2030.
• Living Earth’s contract provides for cost adjustments not to exceed 5% in any single year nor exceed a cumulative increase of 20% over a four-year period.
FINANCIAL SUMMARY:
• 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, 2024.
• Per ton rates will increase based on annual CPI-U for curbside hauling from $30 to $31.50 per ton 0-5,000 tons and from $29 to $30.45 per ton for 5,000+ tons.
• Funding is available in account 007-4405-503-8516.
BOARD OR COMMISSION RECOMMENDATION: N/A