City Council's Finance Committee Talks Recycling

The Finance Committee holds a twenty-four-minute discussion on the topic.

The City of Troy's City Council Finance Committee recently met in a relatively long meeting to discuss the increase in the bidding authorization for the curbside recycling program in the city. The meeting was chaired by Councilman Todd Severt, with Councilman Jeff Schilling and Council Susan Westfall present as the other members of the committee. The meeting centered on the financial aspects of the recycling program, the evaluation of bids, and decisions based on economic viability.

The committee's primary concern was the expiration of the current recycling contract at the end of May. The staff had previously recommended going out to bid for recycling services, and only one bid was received from Rumpke, the city's longstanding recycling contractor, though Waste Management and Republic Services were solicited, and both firms did not supply a bid.

The bid from Rumpke was much higher than currently authorized (set at $535,000), and the council is currently being presented with two options: a three-year contract with stable costs and an alternate bid with annual increases. The bid provided by Rumpke showed a flat-three year cost with increases in year four and five, which are optional years. The alternate bid showed stepped increases over the entire five-year contract. During the meeting, it was indicated by the City Engineer that the alternate bid was the most advisable to contract.

Initial internal estimates indicated that bringing the recycling program in-house would require a one-time $2.5 million investment for new equipment and labor. However, the city’s internal financial review suggested that outsourcing remained the cheaper option. Despite the higher bid, the administration assured the committee that there would be no rate increases for the community over the new contract period.

Strategically, the city is considering three options: continuing with the current contracting model, bringing the program entirely in-house, or finding a hybrid solution. A comprehensive review is planned before the end of the third year of the contract to determine the most cost-effective approach for the community.

Public concerns were raised by Steve Henriksen, who questioned the value of recycling given the diminishing returns and increased costs. He suggested considering whether it might be more economical to dispose of all waste in landfills. Other council members in attendance also sought clarification on long-term cost implications, potential rate hikes after five years, the legal requirements to have a recycling program, and the overall financial prudence of the proposed bids. The committee was clear that there was a need to balance environmental concerns with economic realities.

Given the imminent expiration of the current contract, the committee acknowledged the urgency of making a decision to avoid service disruption. An emergency recommendation was made to proceed with Rumpke’s bid, despite the higher costs, to ensure the continuity of the recycling program. The Finance Committee was clear that the city is committed to a thorough analysis over the next three years to determine the best long-term strategy, which will involve monitoring the financial performance, exploring potential efficiencies, and considering alternative models.

Maintaining stable rates for residents over the period of the contract remains a priority for the Finance Committee. Any future rate adjustments will need to be carefully considered and communicated well in advance to avoid sudden financial shocks to the community. While the economic feasibility of recycling is under scrutiny, the committee recognizes the environmental importance of the program and seeks a balanced approach to meet both economic and environmental goals.

The committee unanimously agreed to proceed with the increased bidding authorization as an emergency measure, ensuring the recycling program continues without interruption. The financial authorizations, outlined below, again show that the alternate bid provided by Rumpke will be accepted by the city.

Further in-depth analysis and strategic planning will follow to optimize the program's cost-effectiveness and sustainability. The full council will vote on the alternate bid at their next meeting on May 20th at 7:00 p.m. The meeting will be held in Council Chambers at the City Building at 100 S. Market St.

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