New Richland set for new garbage, recycling contract and updated utility fees

With the current contract set to expire next March, the New Richland City Council is preparing to put out a request for proposal for garbage and recycling services by the end of the month.

City Administrator Anthony Martens said the goal is to provide ample time for companies to submit bids in advance of a November deadline, which will allow the city to get an updated contract on the books in advance of approving the 2025 budget.

The current six-year contracts split responsibilities for waste and recycling disposal between Clarks Grove-based Thompson Sanitation and industry giant Waste Management, which has steadily gobbled up market share and smaller competitors over the last decade.

Under the new draft contract, recycling and waste disposal services would fall under one contract. However, city residents could count on having their trash picked up every Monday before 5 p.m. and recycling every other Monday before 5 p.m.

Martens said that, while Thompson and Waste Management would be welcome to apply, other companies could too. Councilor Jason Casey argued strongly for allowing residents to opt out, allowing them to work with other providers or dispose of garbage and recycling themselves.

Councilor Janda Ferguson expressed concern that allowing people to opt out could bring challenges with ordinance enforcement and cleanup. Martens also argued that the contract’s price might be significantly less favorable to the city if such an opt out clause is included.

Given the significant inflation since the last contract was inked in 2018, the upcoming contract is likely to come with a steeper price tag for residents and businesses. Martens said that utility rates are likely to be revisited for the coming year as well.

In partnership with the Minnesota Valley Council of Governments, which includes Blue Earth and Le Sueur Counties and a number of nearby small towns, the city is planning a comprehensive utility rate study.

Martens said that partnering with the Council of Governments was an easy choice, given the nonprofit municipal association’s penchant for providing services for its members for free or at a greatly discounted price compared to what a private consultant might charge.

In the past, the council considered a utility rate study but balked at the price offered by Abdo Consulting. That said, Martens said that a rate study could provide valuable information, considering historical and projected costs to identify ideal rates and rate structure for the coming years.

Even without the result of any study, Martens said that it seems apparent that the city needs to increase its revenue for the sewer system, suggesting that the council may want to consider a revenue neutral plan to raise sewer rates while lowering water rates.