Olathe awards recycling and transfer-station contracts to Waste Management; city projects combined annual savings

The Olathe City Council on Tuesday approved two contracts with Waste Management Inc. aimed at securing long-term processing and disposal services for the city’s solid-waste program.

Darren Gilbert, infrastructure solid-waste manager for Olathe, told the council that the transfer-station contract will take effect Oct. 1 and, using 2026 tonnage assumptions, is expected to yield an annual disposal-cost savings of about $195,000 and an approximate $130,000 increase in revenue from outside tonnage. The recycling-processing contract would take effect Dec. 15 and carries a slight increase in the per-ton processing fee, which Gilbert said could reduce the city’s recycling revenue slightly; he noted recycling revenues have historically netted positive results.

Council members praised the competitive process and the financial benefits. Gilbert said city recycling collects nearly 9,000 tons annually and that Waste Management’s facility proximity to Olathe has contributed to program success. Waste Management representative John McConnell attended the meeting.

Council approved the recycling processing contract (Item F) and the transfer-station operation, hauling and disposal contract (Item G) each on unanimous 7-0 roll-call votes.

Council members and staff also discussed recycling contamination rates (Gilbert said audits show contamination historically under 10%) and the uncertain market for plastics; Gilbert said plastics (types 1 and 2) remain one of the tougher market segments and that specific revenue splits for plastics would be provided later. Council asked staff to continue exploring longer-term cost reductions and regional coordination for future disposal needs.