FOR IMMEDIATE RELEASE
DATE: March 11, 2016 4:08:10 PM CST
Mayor Turner Announces Agreement on Recycling Costs
New Deal Saves $2M over Previous Offer
Mayor Sylvester Turner announced that he has reached agreement with Waste Management (WM) on a proposed new contract that will allow the city to continue offering recycling services without any disruption. The proposal, expected to be presented to City Council for approval in two weeks, is a two-year contract with a $90 per ton processing fee and a guarantee to WM of at least 75 percent of the City’s recycling stream.
The only change in service that Houstonians will notice is the elimination of glass from the list of items that are acceptable for placement in the green curbside recycling bins. The exclusion of glass will lower processing costs for WM, as glass generally breaks during collection and transportation to the processing site. It is also unduly destructive to the processing equipment. Residents may continue to drop off glass for recycling at the City’s neighborhood depositories.
“I want to thank Waste Management for being willing to reconsider our arrangement and engage in shared sacrifice,” said Mayor Turner. “This agreement makes good economic sense for the city and for Waste Management. It reaffirms our commitment to recycling, doesn’t tie the City to a long-term contract, allows Waste Management to avoid the employee layoffs that would have likely resulted from cancellation of service in Houston and provides an opportunity for potential competitors to enter the market.”
The original negotiated agreement would have locked the city into a six-year contract with a cost of $95 per ton. Citing the need for a shorter contract in case market conditions improve, Mayor Turner countered with a two-year offer at $104 per ton. WM declined the mayor’s counter and submitted a three-year deal with costs of $7.6 million over two years and $11.5 million over three years. The new agreement saves the City more than $900 thousand per year and $2 million over the two year period.
“I want to applaud the mayor and staff for working hard to find creative solutions to reach a mutually-acceptable agreement,” said Waste Management TexOma Area Vice President Don Smith. “Removing glass from the recycle stream was a painful decision but allowed the City to keep the interests of the residents of the City of Houston front and center as they worked with us to find a solution to the City’s recycling needs.”
The City’s current contract with WM is set to expire on March 16, 2016, but WM has agreed to an extension until the new proposal is considered by City Council on March 23. City Council does not meet next week due to spring break.