Despite DPW directorâ€™s concerns about risk of long-term contract, board drawn to projected savings
The Village of Saukvilleâ€™s Finance Committee gave tentative approval last week to a 10-year extension of its waste-collection contract with Advanced Disposal.
Trustees put off a final vote until a contract is available, but agreed to terms with Advanced Disposal representative Jason Johnson.
The disposal company offered options for five, seven and 10-year contracts.
According to the company, the village would save $36,712 if it chooses a seven-year contract over a five-year agreement, and $46,224 if it goes with a 10-year contract over the
The 10-year Advanced contract follows the pattern of a number of local communities, including the City of Port Washington and the town and village of Grafton.
However, it goes against a recommendation from Public Works Director Roy Wilhelm, who advocated a more cautious approach to the agreement.
Wilhelm recommended the village back a five-year agreement, rather than the seven or 10-year options offered by the hauler.
â€śSeven to 10 years is a long time. A lot of things can go right or go wrong in seven to 10 years,â€ť he said.
Disposal technology could change dramatically in that time, Wilhelm said, including the possibility of waste being incinerated to generate energy.
â€śThat could result in the elimination of tipping fees at the landfill and a lot more profit for the company. Nobody knows what direction this will go,â€ť he said.
Johnson said the company has a long-term commitment to use the Glacier Ridge landfill in Horicon, making dramatic changes in how the business operates unlikely.
â€śWe are the only ones facing a risk. Garbage is a very local business. It has to be collected from your curbside,â€ť he said.
Advanced Disposal, and its predecessor Veolia, have offered automated waste collection using a cart system in the village for nearly five years.
â€śTheir service has been acceptable but not stellar in regards to their timeliness and (there have been) more frequent lapses in collection in the last two years,â€ť Wilhelm said.
Despite those concerns, trustees said the savings the village would see by going with a long-term contract were too substantial to pass up.
If the village chooses the 10-year contract, Johnson said, the company would waive scheduled fee increases for the remainder of 2013 and 2014 that are in the villageâ€™s current contract.
To further sweeten the pot, he said the company would not assess a fuel surcharge for the first five years of the new contract. In addition, it would offer a rebate to the village if fuel costs drop below $3 a gallon during the final five years of the agreement.
The hauler also agreed not to charge the village for waste collection at six village-owned properties, which would save a reported $472 a month.
With prices fixed for the first five years, Johnson said the villageâ€™s budget process would be simplified under the long-term contract.
â€śWith the 10-year contract, your budget will be in place for the next five years,â€ť he said.
Trustees were still reluctant to endorse the 10-year contract, until Village President Barb Dickmann did some fast negotiating.
Although the proposed contract called for consumer-price index adjustments of up to 3.5% during each of the last five years, Dickmann asked that the adjustment be reduced to 3%.
Johnson said the company would make that reduction, which prompted Dickmann to ask if a lower CPI rate was possible.
He said 3% was as low as the company would go.
The 10-year contract will be presented for board action in August.