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City staff recommend LRS to operate Rolling Meadows Transfer Station and run residential collection, citing lower rates and larger upfront payment
Summary
City staff recommended Lakeshore Recycling Systems to operate the city-owned Rolling Meadows Transfer Station and to provide residential collection, citing a $1,000,000 upfront payment, higher guaranteed tonnage, and proposed monthly residential rates substantially lower than projected in-house costs; formal agreements will be presented to Council June 23, 2026.
City Manager Rob Sabo and Public Works Director Aaron Grosskopf presented staff findings that Lakeshore Recycling Systems (LRS) offered the greatest overall benefit to Rolling Meadows to operate the Rolling Meadows Transfer Station (RMTS) and provide residential collection services.
Staff said LRS proposed a base rent of $150,000 a year (rising to $157,500 after five years), a $1,000,000 lump-sum payment due within 60 days of contract execution, a guaranteed minimum of 2,750 tons per week, and tipping fees starting at $2.95 per ton. City staff also reported that LRS agreed to complete the repairs identified in a recent facility inspection over the first years of operation. City Manager Rob Sabo summarized that the LRS offer “preserves and strengthens the value of this important City-owned asset.”
City staff also recommended fully outsourcing residential collection to LRS under terms that preserve resident-facing City services. Public Works Director Aaron Grosskopf said the City would retain resident contact points and continue to bill residents directly; the hauler would not introduce an 800-number for customer service. Staff said all four Refuse Division employees would have positions remain within Public Works or be offered comparable positions with LRS and that LRS confirmed it would offer comparable salary and benefits to refuse employees who choose employment with the company.
On rates, staff presented LRS pricing that would produce household base rates substantially lower than forecasted in-house costs. The staff materials show LRS proposed base household rates rising from $13.50 in 2027 to $15.80 in 2031 (staff recommended an escalating structure rather than a flat $14.62 option). By contrast, the in-house projected residential rates range from $36.67 in 2027 to $54.50 in 2031. Staff estimated per-household monthly savings and a five-year cumulative savings metric for both regular and senior rates.
City staff framed a broader fiscal use for transfer station revenue: combining increased host/tipping fee income and savings from outsourced collection could support the City’s Local Road Fund without new taxes. Staff noted garbage trucks cause disproportionate road wear and argued there is a nexus for Transfer Station revenue to fund road maintenance equitably.
Next steps: staff did not request immediate Council direction at the Committee meeting but said resolutions approving the proposed Transfer Station and collection agreements will be placed on the June 23, 2026 Council meeting agenda for formal consideration.
