CITY WON'T BID TRASH SERVICE

The Cape Girardeau City Council Monday night voted 5-2 against a motion by Councilman Doug Richards that specifications be drafted to solicit bids on trash-hauling service

Richards' motion, which was seconded by Mayor Gene Rhodes, followed extensive discussion on the issue one that has resurfaced repeatedly during the past five years.

As in the past, Ed Schmalzried of Browning Ferris Industries (BFI), a private trash-hauling company, attended the meeting to lobby the city to bid its residential trash service.

Schmalzried said that given the makeup of the City Council since last year's election, the issue should be revisited, particularly because private trash service was a campaign issue for new council members Richards and Mary Wulfers.

Public Works Director Doug Leslie presented several reasons why the city shouldn't relinquish its municipal solid-waste program. They included:

No compelling community interest in seeking private bids.

Service shouldn't be bid unless the city's convinced it should be privatized.

The city should maintain service as it's forced to comply with new state solid-waste regulations.

Civic groups and companies that have donated equipment and labor for citywide recycling won't assist a large, profit-seeking private company.

A contracted service would be similar to city utility franchises and would place the city in a defensive position.

Leslie said a private company might not be willing to provide such things as recycling service, snow removal, limb and debris removal following storms, and assistance with events such as Riverfest, Help Cape Shine and Friends of the Park Day.

A study of 19 Illinois, Arkansas and Missouri cities showed that the city's trash fee of $8.90 per household is reasonable, the public works director said. He said fees in the surveyed cities ranged from $5 to $12 depending on the types of services provided.

But Richards questioned why, if city service is effective and efficient, the solid-waste program has operated at a loss during the past five years. He said a large, national company such as BFI might be able to provide better service at less cost.

"If we've done all this research and paid all these consultants, why have we not broken even in the past four years?" Richards asked. "Why not bid it out?

"I would like to see it put on bid and give a private industry the opportunity to see if it can be done," Richards said.

Assistant City Manager Al Stoverink said municipalities are required by law to operate trash service based on a "zero" budget, not for profit.

He said that in 1985, when trash service was free, the program operated at a $1.2 million deficit. Since then, implementation of trash fees have brought the city close to balancing the solid-waste budget.

Stoverink projected the solid-waste program this year will lose about $45,000 to $50,000. But, he said, $30,000 to $36,000 of the deficit is due to a state-mandated surcharge on every ton of solid waste dumped in Missouri landfills.

Stoverink said he expects the city to break even on trash operations within the next year or two, depending on the success of a new citywide recycling program planned for later this year.

Councilman David Barklage said the cost of operating the service shouldn't be the only reason to contract for trash service. He said several concerns should be considered, including:

A monopoly on residential trash service could affect competition for commercial trash accounts.

A private company's interests are with its stockholders, not the citizens of the city it serves.

The city operates trash service based on operation costs only, not profits.

The city's regulation of similar franchise agreements with utility companies currently is a cause of frustration.

Even if service is bid out, city would still be responsible for billing, administration of the contract and "public accountability."

If a private company became insolvent, how long would it take to replace their service?

"It's a quality-of-life issue," Barklage said. "I know it's probably not a good business decision, but we're not running a business; we're running a community."

Council members Al Spradling III, David Limbaugh and Hugh White all said they wouldn't support seeking bids for trash service.