No Extension for Orion Waste Solutions

No motion to extend Orion's contract with the city was made leading to a bidding war in 2022 for Harrison's trash and recycling.

At the Harrison City Council meeting on Thursday night Mayor Jerry Jackson called for a motion to extend Orion Waste Solutions contract as the city’s garbage and recycling service for five years but no motion came.

The motion call came after a great deal of discussion among the council as well as representatives from three companies all interested in bidding for the city’s residential and commercial trash business. Represented at the meeting was Orion Waste Solutions, Methvin Sanitation, and CARDS Recycling.

All three representatives addressed the council and said they could each provide competitive bids that would maintain the quality of service while keeping the price the same or lower for customers.

The most common concern raised by residents was price increases that could happen if it was put out to bid considering the dramatic rise in labor and materials over the past couple of years. Both Methvin and CARDS said they believe they can match or better the price that Orion is currently offering. Orion Waste solutions said that if the contract was extended that they would be willing waive the annual Consumer Price Index rate increase which according to Chad Donovan with Orion would save each residential customer $1.18 per month.

Chief of City Operations, Wade Phillips, mentioned some changes to the contract that might be considered if it is put out to bid including whether or not every house should have a recycling container or only those that request one. He said that might make Harrison’s recycling cleaner, which has been a problem in the past that the city has tried to address with education about what is and is not recyclable.

Mayor Jackson said, “I really feel strongly that we should go out to bid.” His reasoning is, first, being that a local company, Methvin Sanitation, wants an opportunity to bid on the contract. Jackson said, “We’re not giving them the business, they just want an opportunity to go to bid. And I think we have made a commitment early on to support local companies.”

Secondly, Jackson expressed concerns over multiple ownership changes of Orion over the last two years and said that new ownership almost always brings changes. Orion is now owned by LRS Waste in Chicago and Jackson said he was anxious to see if a LRS representative from Chicago would come to the council meeting on Thursday. Under previous ownership, Jackson said, representatives would have been at the previous committee meeting and the council meeting as well but no representative was present.

“I think that speaks volumes,” he said.

Councilman Larry Phillips asked what the length of a new contract would be if it is put out to bid. The contract, which was awarded to Inland Waste Solutions, now Orion, was for 10 years with an option to extend it another five years. Mayor Jackson responded, “it could be for two days, it could be for twenty years.” Wade Phillips spoke to the matter and said that while ten years is a little long, most trash and recycling contracts go for a minimum of five years to encourage outside companies to make the investment and offer more competitive bids.

Mayor Jackson also said that he has researched the length of contracts for trash services in other cities and said five years was by far the most common.

Councilman Mitch Magness said that the council agenda stated that the motion to be called for would be an extension, not to put the matter out to bid. He said the wording of the agenda prevents the council from doing anything other than asking for a motion to extend Orion’s contract for five years. A motion was called for by the mayor and several seconds of silence ensued ending with no motion and no contract extension.

The current Orion contract goes through December 31, 2022, giving the city a full year to put out a proposal request and review bids to start a new contract on January 1, 2023. Mitch Magness said he expects that process to start early in the year with bids being presented to the council in the spring or summer and a decision being made around that time.

Some preference will be given to Methvin Sanitation as a local company because of an ordinance that passed in recent years stating that a local company whose bid is 5% higher, up to $50,000, will be awarded the contract over a business outside of the city. Other than that, the playing field will be leveled in the competition for trash and recycling service in Harrison.