Committee approves financing package to replace curbside trash and recycling carts, authorizes up to $5.5 million

The Providence City finance committee on Sept. 9 approved an ordinance authorizing the financing and appropriation of funds, not to exceed $5,500,000, to purchase and distribute new curbside municipal solid waste and recycling carts.

City staff told the committee the program will replace aging carts with 125,000 new 95‑gallon carts (62,500 for trash and 62,500 for recycling). The replacement aims to reduce recycling contamination, lower disposal costs, and reduce ongoing maintenance for broken carts. Staff said the current fleet is more than a decade old and generates significant repair work.

The financing package presented to the committee relies on a combination of low-interest loans from Closed Loop Partners and grant funding. Staff reported a term sheet that calls for borrowing approximately $5,168,000 in two pieces: about $3,177,006.92 at 0% interest (60 months) and about $1,986,057.69 at 3% interest (81 payments). The repayment schedule shown in the packet projects total payments across the term of roughly $5,290,022.74 and an aggregate interest charge of about $126,272.74 (an effective rate near 1.15%), as summarized in the term-sheet materials presented to the committee.

Staff said the city also secured grant awards that reduce the net cost: an EPA corporate grant of approximately $1,850,000 and a Recycling Partnership grant (described in the presentation as roughly $600,000 total, with about $375,000 earmarked for parts and education). The manufacturer selected through a competitive RFP will assemble, distribute and haul away old carts for recycling; the vendor will provide a credit for reclaimed plastic as part of its bid.

Other program details presented to the committee: - Each residence will receive one trash and one recycling cart; households in multi-unit homes will receive proportional allocations (for example, a three‑family home receives six carts). - The city will move from 65‑gallon trash carts to 95‑gallon carts for both trash and recycling to reduce overflow that contributes to contamination. - The manufacturer offers a 10‑year warranty on the new carts. Staff said distribution is expected in a rolling manufacturing and delivery schedule; the vendor estimates 6–10 weeks to begin deliveries once production starts, with a likely late‑winter/early‑spring rollout to ensure sufficient delivery crews.

Committee members asked about a few technical items: the size of wheels (the vendor had piloted 10‑inch wheels rather than 12‑inch, a cheaper option), whether reclaimed plastic revenue was quantified (staff said they would look up the credit in the vendor proposal), and whether the carts are rodent/pest‑resistant (the bid specifies pest/rodent‑resistant construction; members asked staff to confirm additives or construction details to reduce rodent damage). The city’s law office and bond counsel reviewed the term sheet; committee members asked that counsel fees and any outside-advisor fees be disclosed to the committee.

A motion to approve the ordinance and proceed with the financing and purchase was made and seconded; the committee voted in favor and the motion carried. The committee directed staff to finalize contract documents consistent with the approved term sheet and present the final appropriation ordinance to the full council as required.