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Sterling awards 10-year solid-waste contract to Stutzman, citing lower rates
Summary
After soliciting bids, the City awarded a 10-year refuse disposal contract to incumbent Stutzman Refuse Disposal, citing lower residential rates and a three-year rate lock; the estimated 2025-based annual contract cost is $86,291 and the city receives a 7% franchise fee.
The Sterling City Commission voted Feb. 16 to approve a 10-year contract with Stutzman Refuse Disposal for citywide residential and commercial solid-waste services.
City Manager Ian Hutcheson said the city solicited proposals and received bids from two contractors, Nisly Brothers Trash Services and Stutzman. Hutcheson recommended Stutzman based on a lower monthly residential rate for residents and a three-year rate lock offered as part of the 10-year term. He said the estimated annual contract payments to Stutzman totaled $86,291 based on 2025 figures; the contractor pays a 7% franchise fee to the city, which has yielded about $8,993 annually in net revenue over the last five years.
Commissioners discussed whether the franchise fee could be increased but were concerned that contractors would pass any higher fee onto customers. The commission approved the contract 5-0.
