Tega Cay council delays decision on Signature Waste contract, asks staff for rate comparisons

Tega Cay’s City Council discussed but did not decide whether to extend a municipal solid waste contract with Signature Waste, saying on March 16 that staff should return with comparative rate data and a tentative bidding timetable before the council chooses a path.

City Manager Charlie reported the existing agreement began in February 2022 and is currently set to expire Sept. 30, 2027. Under the contract the vendor may request an annual increase of up to 3% in certain circumstances; Charlie said the company has signaled it intends to request an increase to reflect rising tipping fees and other costs. He told council the contract allows renewal for two-year terms (with the possibility of another two-year renewal) and that the city must give 180 days’ notice if it intends not to renew.

Several councilmembers said they had heard few complaints about Signature Waste’s service and worried that rebidding now could produce disruptions or higher prices given volatility in fuel and tipping fees. “If it’s not broke, don’t fix it,” a councilmember said, arguing continuity can be valuable for residents. Other councilors said the city had only received one viable bid in the last procurement and urged staff to gather comparable rates and scope details to ensure the city is getting a competitive price.

City staff told council that in the prior RFP cycle four entities expressed interest but only Signature Waste ultimately provided a feasible bid; some would-be bidders later declined because they lacked time to ready trucks and equipment for a near-term start. Staff said national firms such as Waste Management and Republic are present in the region and might bid if the schedule and terms were attractive, but transportation and equipment lead times could limit options.

Rather than vote on renewal or rebidding that night, the council asked staff to prepare: a benchmarking memo showing local and nearby municipal rates and what each rate includes; a draft RFP schedule that accounts for procurement timelines and vendor lead times; and an analysis of household counts and service scope to make comparisons meaningful. Staff said it would present that information at a March 31 workshop so the council could consider whether to authorize a renewal or to issue an RFP with sufficient lead time to avoid service disruption.

Next steps: staff will return to the March 31 workshop with the requested rate comparisons and a proposed schedule; council will decide afterward whether to allow the contract to auto-renew under existing terms or proceed with an open procurement.