Princeton continues trash proposals; takes steps toward keeping services in-house

After debating the pros and cons of contracting trash removal or keeping it a city-run service, the Princeton City Council has informally endorsed keeping the service in-house.

Council members heard proposals from Republic Services as well as LRS and will soon make an official decision whether to contract one of those companies or purchase equipment necessary to keep providing service via the city.

Mayor Joel Quiram shared information from the proposals for those unable to attend.

Republic proposed a 10-year contract with three options:

1. Garbage only service would begin at $12.50 a month. The fee would increase every year of the contract, ending in 2032 at $17.78 a month

2. Garbage and curbside recycling global fee would begin at $15.50 a month. The fee would increase every year of the contract, ending in 2032 at $22.06 a month. These fees would apply to every household in town.

3. The same as the first, but curbside recycling would be a subscription service. Only those who want the service would pay for it. The fee would be an additional $6 a month in addition to the garbage only fee. Curbside Service would be every other week. This fee is subject to change depending on how many participate in the program.

LRS proposed a seven-year contract, which can be extended to 10 years. This proposal contains two options:

1. Garbage only at $9.50 a month. The fee would increases every year of the contract, ending in 2029 at $11.68 a month.

2. Garbage and curbside recycling global fee, beginning at $15.50 a month. The fee would increase every year of the contract, ending in 2029 at $19.05 a month. Service would be every other week. The fee is subject to change depending on how many participate in the program.

In order to keep the city’s garbage collection in-house, the city would have to purchase two trucks and garbage totes for each household.

“The primary concern regarding the private companies is that, while seven- and 10-year contracts are good, we wonder what will happen in year 8 and 11 going forward,” Quiram said. “A new contract with new fees will need negotiated and that’s an unknown factor. We don’t know what companies will be around in the future or if there will even be a choice of companies to obtain new proposals from.”

Quiram said Princeton would need to take on short-term debt in the amount of $800,000, which would be paid back over the course of five years, in order to go down its own road.

“We would also set aside $60,000 a year so when a new truck is needed; in about five to seven years, we will have the funds to purchase a new truck, so no new debt will be taken on,” Quiram said.

Quiram mentioned the city’s fee for garbage collection only would be $15 a month. This fee would remain flat, unlike the plans from Republic and LRS proposed to increase year after year.

“While our fee is higher than the private companies starting out, their fees go up every year; ours will not,” Quiram said. “The private companies fee will eclipse our fee in about year 5 and 6, as our fee remains flat.”

Quiram said the city also would offer curbside recycling, but the council struggles with how to charge for it. There are two options:

1. Households are given a choice to subscribe, meaning everyone pays for garbage pick up but the city charges for curbside recycling to only those who want to participate in curbside recycling. The charge for this would be $3 to $3.50 a month, and it would be in addition to the $15 a month for garbage pick up. The $3 to $3.50 fee to curbside recycle is not subject to change based on participation.

2. Princeton makes it a global charge, meaning every household is charged one fee that covers both garbage and curbside recycling, just as it is now.

“With the second option, the exact figure that everyone would be billed is not yet known, but the global fee would be in excess of $18.50 a month because we will need to buy recycling totes for every household, instead of just the 40 to 45% of households, represented in option 1, who currently curbside recycle,” Quiram said.

Quiram outlined garbage totes for every household will cost $205,000 and the second option, with recycling totes for every household, would double this cost.

Currently, the city charges an $11.50 global fee for garbage and recycling, while only 40 to 45% of households curbside recycle, according to Quiram.

“If we have a global fee going forward, and the fee is in excess of $18.50 a month, the hope is that it will encourage more households to curbside recycle,” Quiram said.

“Regardless of all this, curbside recycling is a convenience, and it is costly. It adds to the wear and tear of the trucks, it’s hard on tires and brakes, and there’s the fuel costs. And then there’s the cost of totes. It is a convenience we must collect for in order to provide the service.”

Under the city’s plan, the fee increases would go in effect soon after approval. When the trucks are ordered, the city will have to pay 1/3 down. A second 1/3 payment will be due in a few months and the final third upon delivery, which is expected in October or November.

Officials would have to order totes and possible totes for recycling will add to this figure; either by doubling it with a global fee or by cutting it by more than half with a subscription service.

“Regardless, we need to start collecting the fees now for this program with the city to work,” Quiram said.

Quiram said the city plans to move informally forward with a plan to maintain its own garbage-collection operations.

“While it would be very easy to give up our service and go private, the City Council is unanimous in wanting to keep the service in-house,” Quiram said. “Our goal is to have an ordinance to increase fees in place for two readings beginning at our next meeting.”

Princeton will need to adopt a resolution to take on debt needed to purchase trucks and totes to officially move forward.

“Once the ordinance passes two readings, the fees will go into effect and the city will place an order for the trucks,” Quiram said. “There is also the possibility that we may not need to take a loan for the entire $800,000. Our tax revenue for the year is looking very good and if the numbers hold up, we will end the year with a nice surplus, which could mean that the amount of money to borrow, could be reduced.”

The next Princeton City Council meeting is scheduled for 7 p.m. Monday, March 7, at City Hall.