Anacortes council approves one-year extension with 6% increase, directs staff to negotiate new waste contract

Anacortes City Council on July 21 approved a one-year amendment to the city's residential trash, recycling and organics contract with Waste Management and directed staff to pursue direct negotiations for a longer replacement contract.

The council unanimously authorized the amendment after a motion from Councilmember Walters and a second from Councilmember Fantini. Public Works Director Andy Rayum told council the amendment would extend the existing contract to July 1, 2027, and postpone a CPI adjustment until that date, when a 6% increase would take effect.

The amendment passed after Rayum described timing needs for any future request for proposals and explained the practical constraints haulers face in ramping up service. Rayum said, "we are under contract till July 1" and that the extension would give time for any potential new contractor to prepare equipment and staffing.

Nut graf: The extension provides short-term price certainty for city customers while the council seeks a longer-term approach to rising service costs. Council signaled a preference to try direct negotiation with the incumbent first, but retained the option to run an RFP if negotiations do not produce acceptable terms.

In discussion, Walters said the one-year extension was "very clearly the path forward" for the amendment itself but urged a later conversation on how to phase or implement the rate increase for ratepayers. Councilmember McGrath noted the city had received a year without an increase under prior administrative action and emphasized staff would return with implementation options.

The council then debated the broader contract strategy under agenda item 6b. Rayum and staff recommended beginning direct negotiations with Waste Management on a new 10-year contract, noting the current agreement is one of Waste Management's older contracts. Rayum said the company offered a 6% increase in this amendment rather than a larger increase staff feared it might propose. He told council the 6% figure was "pretty comparable" with regional peers and gave staff the recommendation to negotiate directly while preserving the alternative of an RFP if terms were unacceptable.

Councilmembers highlighted state-level changes that could affect contract design. Councilmember Walters and Councilmember Bolton both referenced the state's Recycling Reform Act and its implementation timeline as a factor in deciding contract length and terms, with Bolton summarizing that the law aims to establish a universal collection list and shift much recycling cost responsibility to producers.

Council concerns and options discussed included contract length, frequency of service (some jurisdictions are moving to less frequent collection to control costs), potential penalties or incentives for bin contamination, who handles billing (the city or the hauler), and creative organics-collection options for households that do not generate large yard waste volumes.

Outcome and next steps: The council voted 7-0 to approve the one-year amendment (motion by Councilmember Walters; second by Councilmember Fantini). The council, without formal objection, directed staff to open direct negotiations with Waste Management on a new contract and to return to council with draft terms. If direct negotiation fails to produce acceptable terms, staff said they would proceed with an RFP. Any new contract would return to council for formal approval.

Ending: Staff indicated they would bring detailed contract proposals and options for implementation (including how to structure customer billing or service frequency changes) back to council for further deliberation before any long-term contract is finalized.