Title
Consider/Discuss/Act on Authorizing Amendment No. 2 to the License Agreement with Waste Connections, Lone Star, LLC.
Summary
COUNCIL GOAL: Operational Excellence - 2B: Balance Available resources to accommodate the growth and maintenance needs of the city.
MEETING DATE: May 4, 2021
DEPARTMENT: City Manager's Office
CONTACT: Steve Tilton, Assistant City Manager
RECOMMENDED CITY COUNCIL ACTION:
* Approve ordinance
ITEM SUMMARY:
* The ordinance would approve a 2nd amendment with the City's refuse & recycling carrier, Waste Connections. Upon completion, the amendment will allow for the following increases to three (3) different components of the agreement:
o Residential Collection: $1.60 increase per month per home
o Commercial Collection: 25% increase over three-year period (10%, 10% and 5%)
o Downtown Collection amended as follows:
* Low - $63.30
* Moderate - $279.84
* High - $583.49
* Waste Connections will be required to increase their performance bond from $1,000,000 to $2,000,000.
* Waste Connections will no longer be required to make a minimum recycling revenue payment to the City.
BACKGROUND INFORMATION:
* Relationship with original company (IESI/Progressive Waste Solutions) dates back to 1996. (Through subsequent mergers and acquisitions, parent company is now Waste Connections.)
* Current contract agreement executed in 2008 with termination in September 2017, amended in 2013 extending expiration date to September 30, 2024.
* Since 2008, eight (8) contract service fee increases approved based on CPI-U (*).
* McKinney has not increased its collection rate ($15.36) to residents since Oct. 1, 2006.
* 2016 - Waste Connections merged with Progressive Waste Solutions and Waste Connections took over management of the agreement.
* 2018 (Feb.) - City receives request from Waste Connections for rate increases. (Similar request made to Frisco, another full-service customer of Waste Connections)
* 2018 (March) - Per Council ...
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