PRESENTER: Presenter
Matthew Eckmann, Assistant Director of Public Works
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SUBJECT: Title
Approval of the fourth amendment to an existing contract with Waste Management of Texas Inc. to provide solid waste disposal services for the City of New Braunfels.
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DEPARTMENT: Public Works
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
The Solid Waste Recycling Division currently provides curbside residential garbage and commercial collection to all residents and most businesses within the City.
The City is divided into four (4) residential service areas which are serviced one (1) day per week, Monday through Thursday. Each collection day/service area contains up to eight (8) routes, for a total of up to forty (40) collection routes. Customers are provided a minimum of one (1), 96-gallon wheeled cart in which to place their refuse. Typically, each route delivers up to two (2) loads to the Mesquite Creek Landfill each day, which is located in northeastern portion of the City, and averages about 2,300 tons per month. Currently, the Program services about 33,000 residential accounts and new customers are added daily.
The City provides commercial collections up to six (6) days per week, Monday through Saturday. Each collection day/service area contains up to eight (7) routes, for a total of up to thirty-two (49) collection routes. Typically, each route delivers up to two (2) loads to the Mesquite Creek Landfill each day, and averages about 3,200 tons per month. Currently, the Program services about 3,000 commercial accounts and new customers are added daily.
ISSUE:
The City and Waste Management entered into the current Solid Waste Disposal Agreement, dated on or about October 1, 2009, amended first on or around October 30,
2012, amended by the second amendment on October 15, 2013, and amended by the third
amendment on October 1, 2018 which is set to expire on September 30, 2023. This fouth amendment will add and additional three (3) year term with two (2), one (1) year renewal options as well as adjusting the current rate for services.
In addition to the term extension and rate increase, Waste Management has also agreed, beginning in January 2024, to contribute $5,000 annually to the City to be used for community programming events or initiatives within the City.
FISCAL IMPACT:
Since the inception of this contract, each year the processing fee has increased by one ($1.00) per ton. Due to rising costs, there is a need for a larger adjustment to capture costs associated with processing the material. Staff has negotiated the following rate increase structure for the term of this contract:
• Year 1 (10/1/23 to 9/30/24): $32.60 per ton for City Waste Material
• Year 2 (10/1/24 to 9/30/25): $34.60 per ton for City Waste Material
• Year 3 (10/1/25 to 9/30/26): $37.60 per ton for City Waste Material
Funds for this expenditure are incorporated in the FY24 budget.
Recommendation
RECOMMENDATION:
Staff recommends approval of a contract with Waste Management of Texas Inc. to provide solid waste disposal services for the City of New Braunfels.