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

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whether we could haul trash across state lines, so we would have to pick a Texas landfill and given they are further out, we would need an even lower tonnage fee to compensate for the added cost to haul a greater distance. Bottom line, from all reasonable sense, the offer made by Waste Connection, Inc., which is in line with the original agreement's renewal terms, appears to be the most financially advantageous option to the citizens of Paris. It is also the only feasible operational option the City has. Impact to Budget: This of course was not something we planned in the FY'21/22 Budget. Nevertheless, such unexpected situations happen all the time and we do our normal procedure to account for it as best as we can. In this situation, given 1) we historically come in under budget for the tonnage fees, 2) we have the ability to transfer a little less to the General Fund given property and sales tax estimates were very conservative, and 3) there are some expenses in the Sanitation Fund that we are hoping will be going away either during next year or the year after (ex: Stillhouse Landfill Post Closure expenses), we are not at this time recommending a rate increase to the garbage collection rates. The added $85,000.00 estimated cost will be absorbed as best as we can and we will monitor it month to month. Please know that we will have to eventually adjust our rates to account for rising costs, but we will try to hold the line as long as possible. Renewal of Agreement When examining the Agreement itself, other than some price changes throughout, there is very little else that needs to be changed. The City Manager worked with staff to check on each section of the agreement to determine whether or not it is being fulfilled. The following sections are noted discrepancies that would need to be addressed: 1. Section 1— N/A 2. Section 2: a. Sub -section (c), with a change of ownership from Sanitation Solution to Waste Connection, there was a change in open hours and days. Some slight work needs to occur here. Nothing significant to our operation. 3. Section 3 — Change of dates to add another ten years. 4. Section 4 — N/A 5. Section 5 — We had not received a Performance Bond last time, we will this time. 6. Section 6: a. Sub -section (a), various updates to pricing: i. Compacted Waste Materials: $6.06 per yard (up $0.66) / $29.51 per ton (up $9.31 from current $20.20 per ton)