Item 4C - Memo CITY OF Item 4C
SOUTHLAKE
MEMORANDUM
September 1, 2026
To: Alison Ortowski, City Manager
From: Lauren LaNeave, Deputy 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 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 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 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
Roll Off Residential
Index Front Roll Excessive Residential Recycle &
Load Off Weight Trash 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%
Page 1 of 3
The index changes for the three indices used for this calculation are
as follows: CPI-U (DFW All Urban — Less Energy) increased by
1.40%, fuel (CNG) decreased by 8.07%, and disposal (Arlington
Landfill) increased by 10.00%. The resulting rate adjustments are
shown in Table 2 below.
Table 2: CWD Calculated Rate Adjustments
Roll Off Residential
Front Roll Residential
Index Load Off Excessive Trash Recycle &
Weight HHW
CPI 0.97% 0.81% 0% 0.98% 1.19%
CNG
Fuel -0.24% -0.32% 0% -0.40% -0.40%
Disposal 2.80% 3.80% 10.00% 2.50% 1.00%
Total 3.52% 4.29% 10.00% 3.08% 1.79%
When applied to the current rates, the total residential increase is
2.78% as shown in Table 3. For commercial customers, the front load
container service will increase by 3.52% and the roll-off will increase
by 4.29%. The increase for commercial front load and roll-off rates
by dumpster size are shown on the rate sheet attached to this memo.
Table 3: CWD Proposed Residential Rate Adjustments
October October Percent
2025 2026 Increase Increase
Trash/Bulk $15.25 $15.72 $0.47 3.08%
Recycle $4.77 $4.86 $0.09 1.89%
HHW $0.86 $0.88 $0.02 2.33%
Residential $20.88 $21.46 $0.58 2.78%
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. The increase in the
commercial rates is above 3% and require City Council approval.
Residential rates are below 3% and are administratively enacted in
accordance with the contract.
If approved, these rates will take effect on October 1, 2026, and be
in effect until September 30, 2027. The rates will be communicated
to commercial and residential customers through the City's website,
social media, e-blast, and My Southlake News.
Page 2 of 3
Item 4C
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.
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 18, 2026, 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 solid waste and recycling
services.
Staff
Contact: Lauren LaNeave, Deputy Director of Public Works Administration
Pritam Deshmukh, Director of Public Works
Page 3 of 3