Title
Consider a memorandum/resolution authorizing the agreement with Waste Management Inc. for the disposal of the City's municipal solid waste.
Summary
DATE: September 19, 2023
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Approval of Agreement with Waste Management Inc. for the Disposal of the City's municipal solid waste
BACKGROUND AND FINDINGS:
The City of Killeen Transfer Station processes over 130,000 tons of municipal solid waste (MSW) annually. On October 8, 2015, the City of Killeen entered into a contract for disposal services for the City's MSW with Waste Management, Inc. Waste Management, Inc. maintains the Temple landfill, which is the primary destination of disposal for the city's MSW, and the Williamson County landfill, which could be used as a secondary destination.
On September 1, 2020, City Council approved Amendment #3 to that contract, which extended the term of the disposal agreement to October 7, 2023.
The proposed agreement, which would become effective at the expiration of the current agreement and would remain effective for five (5) years, sets the disposal rate at $33.12 per ton (base disposal rate). As with the existing agreement, the base disposal rate would automatically increase at the end of each twelve (12) month period by eighty five percent (85%) of the percentage increase of the Consumer Price Index, series CUSR0000SEHG02 CPI-U Garbage & Trash Collection Services, US City Average, not seasonally adjusted, as published by the United States Department of Labor, Bureau of Labor Statistics ("CPI-U"). The CPI-U adjustment will be calculated using the change in the 12-month annual average of monthly CPI-U index values between the May to April period of the year immediately prior to the adjustment date, and the May to April period of the year before. Adjustments to the Contractor's service rates shall be made in units of one cent ($0.01).
Additionally, the base dispo...
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