Trash, recycling rates to increase with new contract

     As with everything in life, costs are going up. The same is true for residential and commercial trash and recycling rates.

   During the Aug. 19 Monticello City Council meeting, Matt Pivit, municipal marketing manager of Republic Services out of Peosta, explained the increase in fees that come with the city renewing its contract for residential and commercial trash and recycling services.

   The city started contracting with Republic in 2018. Prior to that, Public Works performed the job of disposing of trash and recycling throughout the city. Residents used clear bags rather than the uniform containers Republic distributes to all residents.

   “People have asked why we don’t go back to using the city guys for garbage and recycling,” commented Council member Dave Goedken. “We had rates that didn’t cover the cost of replacing trucks. We were going to have to have a tremendous increase to cover the cost of a new truck. And we have those plastic containers versus the bags. I think this has been a positive deal. I don’t think there’s any way feasible for us to get back into it ourselves.”

   Goedken said he is also against allowing residents and businesses to contract themselves with similar services.

   “Anamosa went to allowing property owners to contract their own services,” he explained. “They got to pick and choose however they want it. Now they have a handful of operations running trucks up and down the streets. We did not want five garbage companies running all over our streets. One company and one truck are enough.”

   The city’s contract with Republic for commercial garbage is up at the end of this year. The contract for residential services will expire at the end of 2025.

   City Administrator Russ Farnum and Pivit discussed the contracts prior to bringing the situation to the council’s attention. Both parties agreed that the two contracts should start and end within the same timeframe.

   “One of the ideas I had was to simply extend our commercial contract for a year and renew everything next year,” suggested Farnum. “He (Pivit), instead, provided pricing to do commercial for a 5-year term and residential for a 4-year. That way at the end of the next 5 years, they are all lined up and in conjunction with each other.”

   Farnum proposed to the council whether the city renews its contract with Republic or go back out to bid.

   Under the current contract, the rate for residential trash from June 1, 2023 through May 31, 2024 was $12.17 per home. For June 1, 2024 through Dec. 31, 2025, the rate is $12.54.

   Under a potentially new contract, the rate would jump to $15.67 per home for Jan. 1, 2026 through Dec. 31, 2026. By 2029, it would be $18.15.

   Under the current contract, the rate for residential recycling from June 1, 2023 through May 31, 2024 was $4.64 per home. For June 1, 2024 through Dec. 31, 2025, the rate is $4.78.

   Under a potentially new contract, the rate would be $5.98 per home for Jan. 1, 2026 through Dec. 31, 2026. By 2029, it would be $6.92.

   Under the current contract, the rate for commercial trash from Jan. 1, 2023 through Dec. 31, 2023 was $6.33 per yard. For Jan. 1, 2024 through Dec. 31, 2024, the rate is $6.52.

   Under a potentially new contract, the rate would be $8.15 per yard for Jan. 1, 2025 through Dec. 31, 2025. By 2029, it would be $9.90.

   “Everything has gone up,” remarked Council member Josh Brenneman. “Everyone knows that, unless you’re living under a rock. But $3 per home is a big jump (in reference to the residential trash rate).”

   Republic is giving the city an extended offer for commercial trash for another five years, with a four-year term for residential to bring both services under the same timeline.

   “Every year I meet with Russ and give him an update on our industry,” offered Pivit. “The last several years, there’s been some huge cost changes, structural changes in our industry. Not just disposal sites going up in rates, but we have newer trucks here in town. The truck costs have gone up significantly. Our labor rates for our drivers have gone up significantly. In order to provide this service here, and I feel that Republic does a very good job here for the number of collections we do, the number of complaints that I receive are very low. We’ve had our same drivers here for a long time.”

   In speaking to the cost of a new garbage truck, Pivit said in March 2022, the cost was $295,000. In October of the same year, it was up to $385,000.

   “That was in an eight-month timeframe,” he said. “What you’re seeing as far as rates go, that’s taking into account all of those cost increases.”

   Goedken asked if the new contract would take into account increases at the county landfill, as well as fuel costs. Pivit said unless the landfill issues “an excessive increase,” that has not been added to the contract.

   “With that being said, disposal costs are just a small portion of what our bill costs are,” he added. “Our primary costs are our labor costs, labor rates, fuel rates, truck costs and insurance.”

   As far as fuel prices, Republic has never billed the city for fuel.

   “I definitely could have. A lot of my agreements do have that,” suggested Pivit. “It normally triggers when diesel is over $4.50 a gallon.”

   The council asked Pivit if they waited another year to make a decision, how would prices look.

   “A year from now, the cost will be higher,” he warned.

   Goedken felt that by going out to bid again, the city will see “astronomical charges (rates).”

   Pivit said price isn’t the only thing the city should be focusing on. He said it also comes down to service.

   “There is somebody out there who would do something for cheaper. That’s in anything,” he said. “Nobody is going to come in here with new trucks, honestly the most qualified drivers in the industry who are well taken care of.”

   Council member Scott Brighton asked about price comparables with towns similar to Monticello. Pivit noted that the rates he’s proposing for residential in Monticello are far lower than other communities, which are at $20-plus per home.

   “The rates are going where they’re going,” he said. “And they’re getting higher as the year is going on.”

   Pivit asked that the council make a decision within the next 30 to 60 days regarding the contract with Republic.

   The council asked Farnum to research rates with other services as a comparison.