That’s because the firm the council selected last month after that long fight, FCC, still must build a brand new processing facility in northeast Houston. Until that project is done, the council is being asked to extend a two-year deal with the city’s current vendor, Waste Management, by a year, to March 25, 2019.
Houston had been set two years ago to ink a four-year deal with Waste Management at a processing fee nearly 50 percent higher than the prior price following a downturn in the commodities market. Houston had not sought competitive bids before entering talks on a new contract with Waste Management.
Mayor Sylvester Turner, in the first controversy of his young tenure, tried to hammer out a more favorable deal, negotiating a two-year deal at a slightly lower $90-per-ton fee and agreeing not to accept glass at curbside for the term of the agreement.
The council is not being asked to put any new money into the deal because, according to a memo posted with the council agenda, the commodities market beat projections for several months, lowering the city’s costs. In addition, Waste Management processed fewer tons of materials than expected because recycling was suspended for almost three months after Hurricane Harvey and because glass was removed from the mix.
Three council members voted against choosing FCC as the city’s new longterm vendor, with some noting that doing so would prevent the city from locking in a better rate more quickly. The FCC contract would limit the city’s costs to $19 per ton if the commodities market tanks and, if the revenue earned from the materials exceeds the firm’s $87-per-ton processing fee, the city also would keep half the leftover revenue.
"The council decided to do it this way and so we’ve got to deal with the aftermath, which is this continuing contract. What else can we do at this point?" said Councilman Mike Knox, who raised the issue in opposing the FCC deal last month. "It was pretty clear this was going to happen, so the citizens of Houston are going to have to pay for that decision."
To read the full story, visit https://www.chron.com/news/politics/houston/article/Houston-City-Council-to-debate-recycling-again-12708969.php.