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Council adopts new three-year refuse contract; monthly residential rates drop in year one
Summary
Council approved a three-year refuse, recycling and large-item collection contract with Republic Services of West Michigan that reduces the year-one residential monthly charge from $20.75 to $18.25 and the senior rate from $19.50 to $17.25; year two and three include roughly 5% annual increases and a fuel-surcharge clause.
The Coldwater City Council adopted a three-year refuse collection contract with City Star Services, doing business as Republic Services of West Michigan, that will lower residential monthly refuse charges in year one and include modest increases in years two and three.
Tom told the council the contract resulted from a recent RFP and that residents will see a year-one reduction from $20.75 per month to $18.25; senior rates would drop from $19.50 to $17.25. Staff reported year-two and -three price adjustments of about 5% annually (roughly 85 cents in year two and 88 cents in year three by staff’s estimate), meaning residents would still pay less across the three-year term than under the prior contract.
The contract contains a fuel-surcharge clause tied to a Department of Energy price index; staff said the city has surplus funds in the refuse fund to absorb short-term surcharges if needed. Tom noted the contract award came from the low bidder and that the city historically has not always passed fuel surcharges through immediately.
Council voted to adopt resolution 26-69 to implement the new rates effective July 1, 2026. Staff said they will monitor fuel-surcharge application and return to council if adjustments are required.
