City Commission Rejects Low Bid To Help Riley County Landfill

Betty Book said she was not a speaker. Book is the Manager for Waste Management the largest trash hauling service in Manhattan. She attended the Tuesday night City Commission meeting because her company was the apparent low bidder for the City's own trash.

Book told the Commission that three years ago they lost the bid by only $400 per year but that was the process. She said she owned a home in Manhattan and most of the employees owned homes in Manhattan. Book said that the Company was headquartered out of Dallis but they purchased gas and truck parts here in Manhattan. For not being a speaker, Book did well.

Barbara Sanner representing Sanner Sanitation Service told the Commission that they were the high bid ($500 per year) but that they used the Riley County Transfer Station and Waste Management used the Junction City Transfer Station. She listed the amounts of money lost to Riley County which added up to hundreds of thousands of dollars.

In the end the Commission voted 4-1 to keep their trash in their own back yard overriding the Administrations recommendations. Here is a memo on the subject:

BACKGROUND

Prior to the late 1970ís the City maintained a refuse truck and collected refuse from City facilities. When the vehicle used for refuse collection needed to be replaced, City Administration decided to privitize the operation.

Prior to 1993, the City had an annual contract with a refuse company which was renewed each year. In 1993, in an effort to make the process more competitive, the City formally received bids for a three (3) year contract. The purpose of the contract for three (3) years, as opposed to an annual contract, was to allow other companies the opportunity to recoup the significant investment necessary for the refuse containers.

Prior to 1999, Waste Management Company, Inc., of Manhattan, was the successful bidder for the refuse collection contract. In 1999, Sanner Sanitation Service was awarded the contract for 1999-2001 refuse collection services. The annual contract price was $27,444.

The three (3) year contracts allowed for a fee increase each year. Fees could only be increased due to tipping fees and/or changes in state or federal regulations. Historically, the fees have remained the same for each year of the contracts.

DISCUSSION

Bids were received on November 7, 2001, for refuse collection services for January 1, 2002 to December 31, 2004. Bid documents were distributed to seven (7) refuse companies and two (2) bids were received.

Waste Management Company, Inc., submitted the low bid in the amount of $27,330 annually (see attached bid summary). This is a decrease of $114 annually from the previous contract. Funding for the refuse collection services contract is provided from each departmentís general operating budget on a monthly basis.

RECOMMENDATION

City Administration recommends the City Commission award the contract to Waste Management Company for 2002-2004 Refuse Collection Services.