HomeMy WebLinkAbout05/27/2025 - Regular - Additional Doc-Solid Waste Presentation (PowerPoint)Sanitation Services
May 27, 2025
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Solid Waste Services Contract Options
The City of Port Orchard’s current contract for solid waste services with Waste Management is nearing the end of its final extension. In addition to standard waste collection, Waste
Management has provided support to the City through services such as the annual Spring Cleanup and free sanitation service at various locations throughout the City, including sites
owned by external agencies like the County, fire district, library, and West Sound.
As the contract nears expiration, the City must carefully evaluate its next steps. Three primary options are available:
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Option 1: Request for Proposal
The City may consider opening a public solicitation process to identify and contract with a new solid waste service provider. While this approach may allow for competitive pricing and
potentially updated service models, it poses several significant challenges:
Infrastructure Investment: Any new vendor would need to invest in new compactor trucks, an estimated cost of $2 million, with a lead time of 1–2 years for delivery.
Operational Start-Up: In addition to trucks, the vendor would need to procure and distribute all new residential garbage and recycling cans throughout the City.
Local Facility Access: The current local transfer station is operated by Waste Management. A new vendor would need to secure access or negotiate terms, which could further complicate
operations.
Timing and Transition Risk: The time required for procurement, setup, and transition poses a risk of service disruption or delayed implementation.
Due to these logistical and financial hurdles, soliciting a new vendor may not be a practical or cost-effective solution in the near term.
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Option 2: Renegotiate with Waste Management
The City could choose to directly negotiate a new agreement with its existing provider, Waste Management. This approach offers continuity and operational stability, with the vendor already
familiar with the City's needs and infrastructure. However, rates are expected to increase, and all services will be subject to negotiation.
Rate Increases: Fees are expected to rise and will be based on service levels and the number of customers within Port Orchard.
Continuation of Existing Services: Current service levels can be maintained under a new agreement.
No-Charge City Services: Free garbage and recycling services at City facilities could be retained, subject to negotiation.
Curbside Spring Collection: The City’s annual Spring Cleanup event may continue if included in the contract.
While renegotiation can be a time-intensive process, it may result in more tailored service provisions than public solicitation or state-regulated rates. You will note in the exhibit
provided, rates may end up being higher than WUTC pricing.
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Option 3: Adopt WUTC-Regulated Solid Waste Rates
The City may opt to allow residential solid waste services to be governed directly under the Washington Utilities and Transportation Commission’s (UTC) regulatory framework. This would
shift rate-setting authority to the UTC, which regulates various utility services across the state, including solid waste. Key considerations for this option include:
Rate Stability and Transparency: UTC-regulated rates are standardized and publicly available, providing transparency to residents.
Regulatory Oversight: This model places the burden of compliance and rate adjustments on the vendor through the Commission, potentially simplifying the City’s administrative involvement.
Reduced Local Control: Adopting UTC rates means the City would have less flexibility to customize services or negotiate specific terms to address local priorities.
Service Scope: The City will lose the ability to influence the inclusion of value-added services (e.g., community cleanups or no-charge municipal site services).
This approach may be suitable for jurisdictions looking to streamline management responsibilities but may not meet the City’s unique operational or community service expectations.
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Facilities Currently Covered
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Questions?
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