The city landfill would lock in about 130,000 tons of trash a year from three private haulers and two local governments under five contracts that go before the Public Utilities Board on Monday, Oct. 5.
Every deal follows the same model. The customer promises to deliver a set amount of waste each year, and in exchange it pays a discounted disposal charge per ton. In agenda information sheets, the Solid Waste & Recycling department said the landfill wants predictable tonnage "for both revenue and management purposes."
For the past two years the landfill has had similar contracts with two cities and four private companies, covering 143,900 tons a year and bringing in more than $6 million annually, according to the department.
The five proposals
- Frontier Texas Ventures I, LLC: 60,000 tons a year at $38.25 per ton, worth up to $2,295,000 annually
- Community Waste Disposal, L.P.: 36,000 tons at $41 per ton, up to $1,476,000
- Parker Waste Services, LLC: 28,000 tons at $42 per ton, up to $1,176,000
- Wise County: 4,000 tons at $40 per ton, up to $160,000, through an interlocal agreement
- Town of Little Elm: 2,000 tons at $40 per ton, up to $80,000, also through an interlocal agreement
All five are already landfill customers. Each contract would last two years, carry an annual inflation escalator and be reviewed and trued up every year. Staff linked the deals to a goal of stabilizing rates in the Solid Waste fund. At the listed rates, the five together would bring in as much as $5,187,000 a year.
Bonds and other business
The board is also scheduled to weigh recommendations on up to $300 million in utility system revenue refunding bonds, and on a resolution declaring the city's intent to reimburse capital spending with up to $206,597,252 in bonds, both certificates of obligation and general obligation debt.
That figure spans general government ($40.8 million), solid waste ($5.3 million), water ($51.6 million), wastewater ($49.5 million) and electric ($59.5 million) projects.
