A proposal that would have seen residential recycling fees spike was put on pause by Warren City Council on Monday night.
State law requires the city to conduct a curbside recycling program and the current contract with Waste Management runs out at the end of the year.
Currently, the residential rate for recycling is $3.50 per month, an amount attached to the sewer bill. The proposal for the same level of service in 2023 would have seen that cost spike to $6.29 per month.
The cost to the city to operate the program would have also increased by about $80,000.
Department of Public Works Director Mike Holtz said the bid documents were sent to four entities but Waste Management, which has held the contract since the 1980s, was the sole bidder. Bids were for a three-year contract with two options years at both two pickups and one pickup a month.
While it’s a service the city is obligated to have in place – and residents are obligated to pay for – the city does recoup some of the cost. Holtz estimated the city has received a couple million dollars in recycling grants in the last 20 years.
But City Manager Nancy Freenock said the annual performance grant is “nowhere near what it costs to run the program.”
Holtz said the lack of bids has been typical for the last three to four contract cycles, calling it “just the geography of living where we live.” He acknowledged that staff knew an increase was coming given that the current contract was negotiated five years ago.
Roughly 3,200 residences receive curbside service.
Council didn’t outright reject the bid received but wants additional information.
“It’s forced tax on us,” Councilman Phil Gilbert said.
“It’s a problem county-wide,” Councilman Maurice Cashman added.
Mayor Dave Wortman pitched the idea of seeking a one-year contract “if we don’t like the price right now.”
Inherent to the ideas is some risk – there was concern that may result in higher 2023 costs. It would give council the opportunity to revisit the market next fall.
Holtz acknowledged that the city has been “winning” for the last couple years of the current contract.
Wortman called the increase “astronomical” and stressed his preference for seeing the one-year proposal.
“But if they increase, that’s the risk you take also,” Cashman said.
Council ultimately took action to seek a rate extension for the current bid through the October meeting as well as re-bid the contract for a one-year term.
“(We’re) all in the same boat,” Councilman Jared Villella said, in seeking the best price possible.