Poulsbo council votes to begin bidding process to outsource solid-waste collection

The Poulsbo City Council on Sept. 10 voted to open a formal procurement to outsource the city's solid-waste collection service, approving Resolution 2025-12 after a presentation from Public Works Director Diane Linnaeus and discussion about costs, staffing and equipment.

Linneus told the council that an evaluation by a financial consultant showed “it appears that it could be more cost effective to the customer to outsource solid waste.” She said smaller jurisdictions often pay more to operate collection and that larger or specialized haulers can achieve lower per-customer costs.

The council's discussion focused on next steps and risks rather than debating whether to seek bids. Linnaeus said the formal procurement and review process will likely take about a year and warned that equipment lead times could extend the timetable: “The process to outsource will take a year to go through the proposal process in a thorough method...the order time on a piece of equipment is 18 months by itself.” City Administrator Rob Gelder and Linnaeus said the city will include requirements in the request for proposals to protect Poulsbo's interests.

Councilmember Gary McVay, who moved the resolution, framed the vote as a step to limit future cost pressures for ratepayers. “Given the cost comparison between our current rates and what other jurisdictions who use private haulers can offer, it was pretty straightforward decision, I think, in the best interest of our ratepayers and our citizens,” McVay said. The motion passed with unanimous aye votes from councilmembers present.

Councilmembers asked staff to return with several items during the procurement phase: recommendations for interim rate adjustments to take effect while the procurement and any transition occur (Linneus said she expects to bring a proposed rate increase in November aimed at taking effect in January), a plan for surplus or transfer of city-owned collection equipment, and options for how the city's current solid-waste employees might be treated in any transition. Linnaeus said surplus trucks would be sold or could be transferred to a new provider and that it is common for new providers to offer positions to incumbent staff, though she added that it's "very unlikely that they move to the new provider" in many cases.

Linneus also noted potential revenue and cost-recovery measures the city could ask bidders to address, including an alignment of utility tax on trash to the city's other utility taxes (she said staff would propose a 12% utility tax target in the RFP) and consideration of fees that reflect street wear from heavy collection vehicles. The council discussed the need to account for lost indirect allocations to the general fund if solid waste is outsourced and for options to mitigate those impacts.

The council and staff emphasized the procurement would be structured to preserve service continuity and give the council opportunities for oversight. Linnaeus said the city will hire specialist support for the outsourcing process and return to the council with staffing and contracting recommendations later in the fall. The exact timeline for transition to a private contractor, she said, will depend on bidder proposals and equipment availability.

Votes at a glance - Resolution 2025-12: Initiate process to outsource solid-waste services. Motion carried (mover: Gary McVay; second: not specified). Tally: yes 7, no 0. Outcome: approved. Notes: staff directed to return with interim rate recommendations, a plan for surplus equipment, and guidance on employee transition; procurement expected to take ~12 months, equipment lead times up to 18 months. - Resolution 2025-11 (consent): Authorize execution of settlements with opioid manufacturers (summary statement in packet). Motion on consent passed; tally recorded as unanimous aye during roll call. Outcome: approved. Details in packet: city's independent claim filed 02/2018; resolution would release city claim to join state-negotiated settlement (specific settlement terms not specified in the oral summary).

What happens next Staff will begin drafting an RFP and return to the council in late October or November with proposed interim rate adjustments and recommendations on consultant support and contract language. The council may consider amendments to utility tax policy and budget adjustments to reflect any transition costs or changes in enterprise fund revenues.