Item 4I - MemoItem 41
CITY OF
SOUTHLAKE
MEMORANDUM
August 19, 2025
To: Alison Ortowski, City Manager
From: Lauren LaNeave, Interim Director of Public Works
Subject: Consider request for solid waste rate adjustments in
accordance with Community Waste Disposal, LP. contract for
the provision of commercial and residential solid waste and
recycling services.
Action
Requested: Consider request for solid waste rate adjustments in accordance
with Community Waste Disposal, LP. contract for the provision of
commercial and residential solid waste and recycling services.
Background
Information:
The purpose of this item is to seek City Council approval of
Community Waste Disposal's (CWD) request for rate adjustments
in accordance with the contract for commercial and residential solid
waste and recycling services. The City Council approved a five-
year, non-exclusive contract with CWD on August 1, 2023, for
waste, recycling, and household hazardous waste collection
services. The contract, which began on October 1, 2023, includes a
provision for annual rate adjustments based on the Annual Cost
Adjustment Model outlined in Exhibit B of the contract.
The annual cost adjustment model applies to all trash, recycling,
and other related services for residential and commercial customers
to allow CWD to be aligned with current economic conditions. The
model includes a weighted matrix for changes in the Consumer
Price Index (CPI) for the Dallas -Fort Worth area (less fuel),
compressed natural gas (CNG) fuel costs, and Arlington Landfill
disposal rates. The weighted distribution is shown in Table 1 below.
Table 1:
CWD Annual Cost Adjustment Matrix
Front
Roll
Roll Off
Residential
Residential
Index
Load
Off
Excessive
Trash
Recycle &
Weight
HHW
CPI
69%
58%
0%
70%
85%
CNG
3%
4%
0%
5%
5%
Fuel
Disposal
28%
38%
100%
25%
10%
Total
100%
100%
100%
100%
100%
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Item 41
The index changes for the three indices used for this calculation are
as follows: CPI-U (DFW All Urban - Less Energy) increased by
0.80%, fuel (CNG) increased 54.78%, and disposal (Arlington
Landfill) increased 5.07%. The indices adjustments are shown in
Table 2 below.
Table 2: CWD Calculated Rate Adjustments
Front
Roll
Roll Off
Residential
Residential
Index
Load
Off
Excessive
Trash
Recycle &
Weight
HHW
CPI
0.55%
0.46%
0%
0.56%
0.68%
CNG
1.64%
2.19%
0%
2.74%
2.74%
Fuel
Disposal
1.42%
1.93%
5.07%
1.27%
0.51 %
Total
3.61 %
4.58%
5.07%
4.57%
3.93%
When applied to the current rates, the total residential increase is
4.40% as shown in Table 3. For commercial customers, the front
load container service will increase by 3.61 % and the roll -off will
increase by 4.58%. The increase for commercial front load and roll -
off rates are shown on the rate sheet attached to this memo.
Table 3: CWD Proposed Residential Rate Adjustments
October
October
Increase
Percent
2024
2025
Increase
Trash/Bulk
$14.58
$15.25
$0.67
4.60%
Recycle
$4.59
$4.77
$0.18
3.92%
HHW
$0.83
$0.86
$0.03
3.61 %
Residential
$20.00
$20.88
$0.88
4.40%
Rate Total
Under the terms of the contract, rate adjustments require City
Council approval if exceeding 3%. If exceeding 8%, it will trigger the
extraordinary increase clause of the contract.
If approved, these rates will take effect on October 1, 2025, and be
in effect until September 30, 2026. The rates will be communicated
to commercial and residential customers through the City's website,
social media, e-blast, and My Southlake News.
Financial
Considerations: An increase in rates will increase the franchise fees received by the
City. The City collects ten percent (10%) of the total monthly dollar
amount collected for residential and commercial / industrial billing.
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Item 41
Strategic Link: This contract links to the City's Focus Area of Partnerships &
Volunteerism, and B2 Collaborate with select partners to implement
service solutions.
Citizen Input/
Board Review: The proposed rate adjustments were presented to City Council at
the work session on August 5, 2025, with no additional changes.
Legal Review: The original contract has been previously reviewed by the City
Attorney.
Alternatives: 1. Approve proposed cost adjustment as presented.
2. Deny proposed cost adjustment, and direct staff to continue
negotiations with Community Waste Disposal (CWD) to
develop a revised cost adjustment to bring forward at a later
date.
Supporting
Documents: A. Request for Cost Adjustment from CWD (includes revised rate
sheet)
B. Executed Contract with Exhibits
Staff
Recommendation: Staff recommends approval of this request for solid waste rate
adjustments in accordance with Community Waste Disposal, LP.
contract for the provision of commercial and residential solid waste
and recycling services.
Staff Contact: Lauren LaNeave, Interim Director of Public Works
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