Councilors weigh rising recycling costs and contract options for municipal trash service

Councilors and Commissioner Mike Collins discussed the upcoming sanitation contract renewal and growing recycling costs during the FY26 budget hearing.

Collins told the Committee on Finance and Property that the current contract will expire at the end of the coming fiscal year and that market changes — consolidation among vendors and the higher cost of recycling — will shape the request‑for‑proposal (RFP) the city must prepare. “For years, we made a little money on recycling or at least it was cost neutral and is now the tide has turned dramatically towards having the recycling be very expensive,” Collins said.

Councilor Smeag asked whether the city is preparing an RFP and what thinking has gone into the next iteration of the trash contract. Collins said the department will prepare for a new solicitation, and that vendors are signaling a preference for automated collection to reduce manpower costs. He said private consolidations such as Republic’s acquisition of JRM have brought “a different business model…they’re trying to reduce their manpower costs,” and that vendors may quote lower prices for automated collection than for manual pickup.

Councilor Spain noted the general fund currently subsidizes a large share of sanitation operations and asked whether fee increases to offset costs had been considered. Mr. Ailes said the city has not eliminated the sanitation fee but has not raised it either, and confirmed that the general fund is subsidizing the sanitation enterprise fund “too heavily.” Collins added that the city is discussing curbside compost opportunities with vendors; he said the addition of a curbside compost program would add cost and might not fully offset tipping‑fee savings but could reduce greenhouse‑gas emissions.

Discussion points vs. decisions

Discussion only: the market shift toward automation for trash and recycling, rising recycling costs, the upcoming RFP, and the potential addition of a curbside compost program.

Direction/assignment: staff said the city will monitor vendor proposals and prepare an RFP ahead of contract expiration.

Formal action: none recorded on fee changes or contract award in the transcript.

Ending

Councilors signaled they will engage with staff when the RFP and rate/fee options are ready for council review.