PEKIN — Pekin City Manager Tony Carson will make a recommendation Monday to the Pekin City Council — should the city continue to haul its own solid waste or should it contract the work out to a private company?
The Council will not vote on the issue Monday.
The city received bids in early December from two private companies for solid waste — Waste Management and Peoria Disposal Co. At the time, Carson said he needed to examine the private and in-house options. The city of Pekin brought solid waste in-house in 2004 after the price for private haulers increased for several years.
The city had started its own recycling and yard waste program several years prior to its solid waste program, so the city had the data it needed to determine if it would be more cost-effective to bring solid waste work in-house, said former Solid Waste Superintendent Greg Ranney. It was determined at that time the city could save money by doing the work in-house.
A $12 garbage fee for each residential pickup was imposed on April 14, 2014, by the City Council.
According to the 2016-2017 projected budget by the Council, the anticipated expenses for the in-house garbage service this year were $2,669,385.14. Anticipated revenues were $1,698,710.76, according to city records.
Carson said that the closest private bid to the city operations would cost a resident $15.90 per month. That does not include landfill fees and recycling and yard waste disposal fees. The city would have to pay those separate at of a private company bid, said Carson, so the actual cost would be higher.
Carson said Friday that his report to the Council will outline the city program and the two bids.
Waste Management’s bid did not include a base bid. It’s overall alternate bid is $2,619,600 in the first year and excludes free large item pickup. Currently, residents can pay a fee for removal of large items, similar to the former $20 fee charged by the city per item.
The five-year proposal increases each year. The cost in the final year would be $3,006,050. There is an option for two additional years. A proposed alternate starts at $2,478,000 and ends at $2,843,562 in five years. That proposal provides all residents with a recycling cart for bi-weekly recycling pickup and excludes large item pickup.
PDC’s proposal has a base bid of $2,251,440 in the first year and increases annually to the fifth year’s $2,584,200. It’s alternate bid is $2,216,040 in the first year and increases each year to $2,544,552 in the final year, but does not outline what is included in the option.
PDC’s and Waste Management’s bids do not include the purchase of the city’s equipment or the employment of city garbage department employees. The bids are based on 11,800 accounts.
The city signed a 20-year contract with Indian Creek Landfill when it started its own garbage service. The tipping fees would be paid by the city in addition to the base bids by the private companies. The annual tipping fee for 2017 is budgeted at $680,000.
In other matters, the Council will consider:
• Awarding the bid for a new roof at the East Side Fire Station in the amount of $45,500 to River City Roofing Co.
• The Pekin Planning Commission’s recommendation to deny a special use permit for a Good to Great Lawn Services at 2001 Tharp St., a residence.
• The Pekin Planning Commission’s recommendation to deny a special use permit for a drive-through window at 1201 Court St., The Exxon Mobile Fuel Station.
• Amending an agreement with the state of Illinois to change the terminology of an agreement for the taxiway lighting and associated electrical for internal state use. The amendment does not change any of the terms of the contract for the city of Pekin.
Follow Sharon Woods Harris at Twitter.com/sharrispekin