Title
Consideration of and action on authorizing a five (5) year extension of commercial waste removal services with Waste Management of Texas, Inc.
Body
Summary:
In 2013, the City of Deer Park and Waste Management of Texas, Inc. entered into a five-year agreement that provided Waste Management of Texas, Inc. the exclusive right to provide commercial waste collection, transportation, and disposal services within the City commencing on December 1, 2013. That contract since has been extended three (3) times, the most recent of which occurred in 2021. With this action, it is proposed we extend the contract for an additional five (5) year period. The contract calls for annual 5% rate increases, but does not allow any fuel surcharges or consumer price index (CPI) increases to be passed along to the City. Additionally, Waste Management will continues providing no cost servicing of all dumpsters at City of Deer Park facilities, including the recycling dumpsters.
Fiscal/Budgetary Impact:
Extension of the agreement for commercial waste collection services provided by Waste Management of Texas, Inc. to November 30, 2029 with rate increases of 5.00% effective December 1, 2024, 5.00% effective December 1, 2025, 5.00% effective December 1, 2026, 5.00% effective December 1, 2027, and 5% effective December 1, 2028. Commercial waste collection services are budgeted in the Sanitation Division (Account 010-402-42200, Commercial Garbage Collection).
Recommended action
Authorize the five (5) year extension of commercial waste removal services with Waste Management of Texas, Inc.