10-year trash deal

Allied Waste recommended for contract after two companies bid for Jeff City service

Allied Waste is being recommended to continue as Jefferson City's solid waste provider for another 10 years.

Only two companies submitted bids to provide solid waste services in Jefferson City - Allied Waste ( also known as Republic Services) and Waste Corporation of America.

At a City Council work session Monday, Janice McMillan, planning and protective services director, said a staff committee evaluated the two proposals and recommended Allied Waste be the sole provider for all solid waste services in Jefferson City for 10 years. That would include commercial businesses, though many local business owners have requested an open market.

Earlier this year, 38 businesses known as the Jefferson City Commercial Trash Alliance, announced their support for an open market for trash services to allow businesses to negotiate their own contracts.

The city has been in the process of evaluating new bids, with the hopes of having a new contract in place by the end of the year.

In November 2009, the city entered into a six-year contract with Allied Waste for exclusive service to city residents. Though several companies had expressed an interest in bidding on the service, Allied was the only bid received by the city. An ordinance passed earlier that year made the service mandatory, and not subscribing to it is a violation of city code.

McMillan said Allied Waste offered the lowest rates of the two proposals and actually offered lower rates than are currently being charged to Jefferson City customers. McMillan said the rates offered are lower because of the 10-year exclusive contract, instead of the original five-year contract the city was looking at.

The city received two initial proposals, one from each Allied Waste and Waste Corporation of America, for a five-year contract. But the staff committee had negotiated reduced rates for a 10-year contract.

She said the exclusive contract was preferred instead of the open market for commercial businesses because it would help keep rates consistent and reduce impact on city streets from heavy trucks.

"It could come at a price," McMillan said of the open market scenario.

Third Ward Councilman Bob Scrivner said though the open market was not recommended for commercials customers, the lower rates should address some of those concerns.

"I'm really excited about the commercial rates," Scrivner said. "It looks like the cost issue has been addressed very significantly."

McMillan also noted that neither company had offered a bag option, where customers are charged by volume, something the city used to offer.

A public information session on the trash proposals and staff recommendation will be held at 5:30 p.m. Tuesday at City Hall.

The City Council could choose a trash provider as early as Dec. 8, though the new contract would not start until the end of May.

The full proposals and staff recommendation are available on the city's website at jeffersoncitymo.gov/solid_waste_proposals_2015/index.php.