Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    Re-Teck opens site in Southeast Asia

    ERI expands global footprint into Vietnam

    Michigan State Launches Center to Tackle Packaging Waste

    Inside the Circle: Put every package where it performs best

    SERI works to restore faith in certifications

    Building a defensible E-scrap evidence file

    EU flags in front of the European Commission's building.

    Europe’s electronics recovery market is moving upstream

    Maximizing the value of post-consumer PP 

    Maximizing the value of post-consumer PP 

    From claims to custody: PCR procurement grows up

    Certification Scorecard — Week of August 3, 2026

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    Re-Teck opens site in Southeast Asia

    ERI expands global footprint into Vietnam

    Michigan State Launches Center to Tackle Packaging Waste

    Inside the Circle: Put every package where it performs best

    SERI works to restore faith in certifications

    Building a defensible E-scrap evidence file

    EU flags in front of the European Commission's building.

    Europe’s electronics recovery market is moving upstream

    Maximizing the value of post-consumer PP 

    Maximizing the value of post-consumer PP 

    From claims to custody: PCR procurement grows up

    Certification Scorecard — Week of August 3, 2026

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
No Result
View All Result
Home Recycling

Houston recycling in jeopardy amid contract battle

byJared Paben
March 9, 2016
in Recycling

Houston Skyline / KENNY_TONG, ShutterstockThe immediate future of Houston’s curbside recycling program is uncertain after city leaders rejected a proposed contract renewal with Waste Management.

The fourth-largest city in America currently contracts with Waste Management (WM) to accept recyclable materials delivered by city trucks to two WM MRFs. Every two weeks, trucks collect single-stream materials from more than 380,000 single-family homes. That pact is set to expire March 16.

The Houston City Council on March 9 rejected a new contract to replace the existing one. In a press conference following the City Council meeting, Houston Mayor Sylvester Turner said city leaders are committed to recycling, but residents may experience short-term recycling disruptions. He also mentioned a possible temporary reduction in recycling pick-up frequency to once per month.

“The City is still very much committed to recycling,” Turner said while announcing plans to provide the public with details on next steps on March 14.

Lisa Doughty, communications manager for Waste Management in Texas and Oklahoma, said the company remains willing to work toward an amicable agreement.

“We urge the mayor to recognize that a sustainable recycling program is one that works for the residents, the environment and the companies that are providing the service,” she said. “We’re one of the partners with our customers, and it takes the entire group, not one or the other.”

WM said it would be willing to charge a daily gate fee to accept materials at the MRFs should the sides fail to hammer out a new agreement.

Below the bottom line

The current agreement is a “zero floor” contract, through which the City and WM share profits when the value of the commodities sold exceeds WM’s sortation costs, but if they fall short, WM is responsible for the loss and the City pays nothing.

If no MRF existed to accept the materials, Houston would have had to pay $27 per ton to landfill the materials, a city document states.

WM says it is annually losing $1 million under the contract and has demanded a renegotiated deal eliminating the zero floor and requiring the City to fully compensate it for revenue shortfalls. The publicly traded, Houston-headquartered company also wanted to boost the processing fee in a proposed four-year contract by 46 percent to account for sortation costs

The resulting contract – the one City Council voted down – would have cost the city an estimated $3 million a year. The debated deal comes at a time when Houston is already facing budget shortfalls, including a $126 million budget deficit through this July.

“At the end of the day, Houstonians expect me to put forth or present the best deal for them that continues recycling and is consistent with the financial pressures that are on this budget,” Turner said.

Turner noted he has talked with WM competitors about serving Houston, saying that one company could ramp up operations in the city in three or four months, while others could accept “some” of the city’s recycling right now.

City Council isn’t scheduled to hold another meeting until after the March 16 contract expiration.

Criticism from the mayor’s office

Turner, who assumed the mayor’s office in January, characterized WM as being “heavy-handed” in negotiations with city officials. “What I’m not going to allow anyone to bully me or to force me into something that’s not in the best interests of the City of Houston,” Turner said.

Turner said he offered to split annual losses 50-50, with the city coming up with about $1.7 million and WM coming up with the same sum. He said the offer was refused.

He also proposed a shorter-term, one-year contract with an optional one-year renewal. But WM refused and sought a two-year contract with a one-year renewal costing the city more than $10 million total, he said.

“I’m going to be very careful with every dollar that we expend,” Turner said. “It’s always good to have a competitive field out there where there is more than one player.”

Waste Management responds

WM’s Doughty released a statement to Resource Recycling saying that the City can realize “hundreds of thousands of dollars” in savings under a new contract if it is able to reduce contamination from citizens’ rollcarts.

“The contamination in Houston’s recycling stream far exceeds national averages and the norm of other cities in our area.” the statement noted. “When prices stabilize and return to historical values, the costs of this contract to the City will shrink, and if commodity pricing continues to increase will become a cash-generating contract for the City.”

In an interview, Doughty said the gate fee at the MRFs would likely be about $104 per ton. This number would fluctuate based on costs and commodity values.

Other companies that previously held recycling contracts with Houston are now gone, she said, noting WM’s purchase in January 2013 of contracts and assets formerly belonging to Greenstar Recycling.

WM spent more than a year retrofitting a Houston MRF purchased from Greenstar Recycling to handle single-stream collections, she said, and it honored the contracts even though it meant losing more than $100,000 a month, Doughty said.

Tags: Contracts & ProcurementMarkets
TweetShare
Jared Paben

Jared Paben

Related Posts

Republic Services waiting on fourth Polymer Center

Republic Services raises guidance as commodity prices climb

byStefanie Valentic
August 7, 2026

Republic Services raised its 2026 outlook as rebounding recycled commodity prices and steady pricing power offset softer volumes and a...

Polyolefins producer provides PCR updates

Plastic-related revenue grows for LyondellBasell

byPaul Lane
July 31, 2026

Supply shortages resulting from the Middle East conflict have led to price surges that brought up the company’s Q2 sales...

Exec: Eastman prepared for recycling unit start-up

Eastman exceeds expectations, expects growth in plastics 

byPaul Lane
July 31, 2026

Company projects methanolysis production to gain more momentum into 2026 as customers maintain interest in recycled materials.

Alpek closing Pennsylvania RPET plant

Alpek seizing on war-related opportunity 

byAntoinette Smith
July 27, 2026

The world's largest PET producer saw a big increase in spot volumes during Q2 thanks to supply chain disruptions, and...

Waste Connections company truck on an urban street.

Waste Connections sees Q2 lift on recycled commodity values

byStefanie Valentic
July 24, 2026

Waste Connections topped second-quarter expectations and raised its full-year outlook, citing a second straight quarter of rising recycled commodity values.

Dow touts US PE advantage amid Iran war

Dow bullish on August PE pricing

byAntoinette Smith
July 24, 2026

Executives made the case for higher prices during a Q2 investor call, pointing to planned maintenance and a throttled supply...

Load More
Next Post
Lepawsky, Dec. 2015 E-Scrap News

Trading on distortion

2026 Buyers’ Guide

Equipment, services and technology suppliers serving the recycling industry.

Browse the Guide

More Posts

Two pilot programs in CA recycle commercial film

August 10, 2026
Ron Gonen

Bicameral Truth in Labeling Act introduced in Congress

August 10, 2026

New federal rule restricts black mass, tungsten scrap exports

August 5, 2026
A Republic Services truck picks up a recycling cart in Fort Collins, Colorado.

Fort Collins, CO builds a roadmap to zero waste

August 6, 2026
PureCycle sees easing headwinds to R-PP adoption

PureCycle says H2 outlook already playing out 

August 13, 2026
Sabic launches engineered plastic with 75% PCR

Sabic launches engineered plastic with 75% PCR

August 11, 2026
Europe’s recyclers miss most of the critical materials

Market surge expected for plastic from e-scrap

August 10, 2026
Alpek closing Pennsylvania RPET plant

Alpek seizing on war-related opportunity 

July 27, 2026
Re-Teck opens site in Southeast Asia

ERI expands global footprint into Vietnam

August 11, 2026

What nine years of acquisitions taught Coastal Waste’s CEO

August 12, 2026
Load More

About & Publications

About Us

Staff

Archive

Magazine

Work With Us

Advertise
Jobs
Contact
Terms and Privacy

Newsletter

Get the latest recycling news and analysis delivered to your inbox every week. Stay ahead on industry trends, policy updates, and insights from programs, processors, and innovators.

Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • The Latest
  • Analysis
  • Recycling
  • E-Scrap
  • Plastics
  • Policy Now
  • Conferences
    • E-Scrap Conference
    • Plastics Recycling Conference
    • Resource Recycling Conference
    • Textiles Recovery Summit
  • Magazine
  • About Us
  • Advertise
  • Archive
  • Jobs
  • Staff
Subscribe
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.