Talkin' trash: Newton considers other options for waste disposal provider
Feb. 21—Instead of renewing another contract with longtime solid waste collector Dodd's Trash Hauling and Recycling, the City of Newton solicited proposals from other waste management companies and will ask council members to decide which one will serve residents. Regardless of the decision, utility bills will be increasing.
In addition to the proposal from its current provider, the city received responses from the Pella-based Midwest Sanitation & Recycling and the Des Moines-based Waste Management & Recycling Services. Public Works Director Joe Grife gave a presentation on each provider and showed how much it would cost residents.
The city's current contract with Dodd's Trash Hauling & Recycling allows for weekly collections of a 35-gallon bin of solid waste and an 18-gallon tote of recycled materials. Dodd's services about 5,600 properties in Newton, and it also picks up trash and recyclables at city parks and receptacles around the square.
"They also do leaf bag collection in the spring and fall and the Christmas tree collection in the winter," Grife said to council members at their Feb. 17 meeting. "So last December we sent out RFPs (request for proposal). We sent them directly to local haulers that we see quite a bit. We also posted online."
Newton asked for a base proposal that matched the current contract services provided by Dodd's and then also asked for an alternate proposal for 35-, 65- and 95-gallon bins that would be collected. Grife also shared what the estimated fees would look like for each service provider over a five-year contract.
Currently, residents are being charged $15.16 per month for solid waste disposal. The city pays Dodd's $12.58 per unit, which equates to $71,790 per month.
The city budgets $1.03 million for solid waste disposal.
RATES TO THE CITY, NOT TO THE RESIDENTS
Dodd's proposed the city pay $15 per month per unit, with an annual increase based on the Consumer Price Index for All Urban Consumers (CPI-U). Grife said these types of increases will vary based on economic factors like inflation. Also, Dodd's provided no information for the city's alternative proposal.
Despite the low rate, Grife said Dodd's price-per-gallon of solid waste is actually the highest of the three proposals.
Grife also said Dodd's has been in business since 1967, employs Newton residents and has partnered with the city on numerous occasions.
Unlike the most trash haulers in the state, Dodd's is only a manual collection-based service. Historically, Dodd's has shied way away from automated service in favor of keeping people employed, particularly those who need a second chance or have difficulty finding work due to their pasts or other circumstances.
Midwest Sanitation provided the city with a manual collections-based proposal of $20.58 per month for every 35-gallon bin of solid waste and 18-gallon bin of recycled materials. The company also proposed a 3 percent annual increase in a five-year contract with the city.
In the alternative proposal, Midwest Sanitation offered a monthly rate of $17.75 for 35-gallon and 95-gallon bins and $17.50 for 65-gallon bins. Grife said Midwest Sanitation has been in business since 1981 and has Jasper County residents employed with them. The provider also frequents the city landfill.
"They also provided service to Iowa Speedway the past few years for some of their bigger events," Grife said. "They can provide services to collect three sizes of bins but they have a little bit higher rates than everybody else."
Waste Management did not provide a manual collection proposal. Typically, the company does not provide collection services for 35-gallon bins. The proposed city rate was $14.98 per unit for 65- and 95-gallon bins. Grife said Waste Management typically provides bi-weekly recycling, but that can be changed.
Known by its more common name, WM, the company operates nationwide. It was founded in 1968 in Chicago, and it is currently headquartered in Texas. Grife said even though it is a nationally recognized waste management company it also has local employees. Grife said it also has state-of-the-art equipment.
"They have the lowest cost-per-gallon, but like I said they did have a bi-weekly collection of recycling," Grife said.
ESTIMATED RATES FOR RESIDENTS
Residents of Newton will be paying more for solid waste disposal and recycling services. Grife stressed this fact to council members. The waste disposal fee is added onto resident water bills, which factor in all utilities into one bill. Utility bills charge Newton residents for water, sewer, sanitation and stormwater.
Grife estimated residents would pay $18.05 per month if the city chose Dodd's, but they would be limited to only a 35-gallon bin. By the end of the five-year contract, the fee to residents could climb to $20.08.
Midwest Sanitation would cost residents $20.80 per month for a 35-gallon bin ($23.41 by Year Five); $23.15 per month for a 65-gallon bin ($26.06 by Year Five); and $25.85 per month for a 95-gallon bin ($29.09 by Year Five).
Waste Management would cost $20.65 per month for a 65-gallon bin ($25.10 by Year Five) and $23.05 per month for a 95-gallon bin ($28.02 by Year Five).
"We're going to see an increase no matter who we pick," Grife said.
MUCH TO CONSIDER
By the March 3 city council meeting, officials will meet once again to discuss and possibly take action on which proposal they like best. Grife said his intention with the presentation was to provide all the proposals for council to review and then collect questions for the trash hauling companies.
Representatives from each hauler will be at the future meeting to help answer any questions and also "state their case," Grife added.
Newton City Council is now tasked with finding the best provider for its residents. Not only are they factoring in costs, but they also have to consider the scope of services. Automated service is a streamlined approach that nearly every community in the state has adopted. Is a manual approach outdated?
Then again, a manual approach seems to provide for additional jobs. Bigger bins means more trash is collected. Midwest Sanitation and Waste Management provide those bins to every customer, which means more consistency and perhaps less chance of toppling over. It also means higher volume of recycling.
While some potential employees may see the value in working a manual service with another person alongside them, others may see the benefits of staying in the truck cab for automated service collections during the hot summer months and cold winter months.
However, Dodd's is quite literally a mom-and-pop business in Newton.
Which is why some are taking community impact into consideration. Council member Randy Ervin pointed to how Dodd's has worked with large events like RAGBRAI in the past and he questioned if the other two companies would do the same for Newton. He also wondered if they would participate in other events.
"When we all get said and done — if you're comparing apples to apples and 35-gallon things — we have a commitment to this community to stay local," Ervin said. "Not picking on Pella. Not picking on Des Moines. I'm just saying it's going to take a tall order from me to understand why we would go away from Dodd's."
Grife said the March meeting would allow the other haulers to explain what it is they do for the communities they service.
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