19 - Renewing the Landfill Services Agreement with Waste Connections, Inc.

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Analysis Price Standpoint Pursuant to Section 6(f) of the recently expired contract, if the City of Paris chose to renew this agreement, the new base rate would be "at least twenty percent (20%) lower than the average contract landfill rates being paid in March 2021 by the following Texas municipalities; Tyler, Texarkana, Sherman, Greenville and McKinney. But in no event shall the base rate exceed $10.49/cubic yard or $29.74/ton for waste materials disposed of at the Landfill during the first year of the renewal term of this agreement as provided herein." Waste Connection, Inc. has provided to us the following data, which the City has verified: - Tyler $34.93/ton - Texarkana $39.00/ton - Sherman $25.36/ton - Greenville $45.18/ton - McKinney $40.00/ton - Average $36.89/ton - Minus 20% $29.51/ton Waste Connection, Inc. has agreed to a renewal of $29.51/ton which is in compliance with the renewal terms of the initial agreement. It is reasonable to assume that if the City were to put its landfill services contract out for bid, the result would likely be that any bids received would be priced more towards the average of these communities. Currently, the City is paying $20.20/ton. Waste Connection has had the opportunity to increase their price by as much as 5% each of the ten (10) years they have operated, but they have not done that. Had they done that, it would be approximately $26/ton today. Nevertheless, the renewal would be an approximate 46% increase from current. Again, given the contract renewal language that Waste Connection is honoring, and once you examine the information in the following section for operational costs, we do believe it reasonable to assume our prices would only come in higher if we bid out this service according to state competitive bidding rules. Location / Operation Standpoint As was shared in the opening section, the City of Paris drives each trash truck twice a day to the landfill to unload. We try to have three men to a truck. It is very important that we keep in mind the operational impact to switch landfills based on location of the landfill, thus distance from the City of Paris and drive / operation time added for greater distances.