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Council discusses Teranova extension and changes to recycling/compost pilot; staff cites short-term extension while preparing bid

Chattanooga City Council · June 2, 2026
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Summary

Council members and staff discussed plans to extend Teranova's curbside/kiosk recycling services for three months while preparing a bid, noted kiosk and admin costs, and said curbside composting may be phased out in favor of drop-off and kiosk services.

Council members spent a portion of the June 2 meeting reviewing options for a city recycling and composting pilot program and a proposed short-term extension to the existing Teranova memorandum of understanding.

Vice Chair Elliott and other members flagged communications and transparency issues after residents discovered changes buried in budget materials. City staff described that the curbside composting component will slowly sunset while kiosks and drop-off services remain; administration intends to put services out to bid and requested a three-month extension of the existing memorandum to bridge to a formal procurement.

Councilman Clark asked whether fees for individuals who use niche services (composting, glass collection) were being considered. Staff said internal planning is underway and that a six-month timeframe was given to develop a fee structure; initial discussions prioritize businesses for consistent-volume collection before individual fees are proposed. Council staff cited current kiosk costs of about $1,000 per month for collection and $777 per month in administrative fees for certain districts under the MOU.

On e-mobility, council members asked about a purchase of 25 new e-bikes and two charging stations; staff confirmed 25 additional e-bikes are being purchased and said the bikes are interchangeable across charging stations, though specific station allocations will be set by operations and budget availability.

Next steps: staff will extend the Teranova memorandum for three months while preparing a bid and will return with a plan and 30-day updates on the development of a fee structure and sustainability plan.