Healdsburg officials said they aren't ready to commit to a long-term contract with the city's trash hauler, despite the company's promises to sweeten the deal with rate discounts for seniors and disposing for free the sludge from the city's new sewer plant.
Redwood Empire Disposal seeks a 10-year extension. But City Council members Monday said they want more information on a possible short-term contract. And council members also left open the possibility of putting the contract out to bid with other companies.
"We'd like to negotiate with (Redwood Empire) and not go out to an RFP (request for proposals). If negotiations fail, it doesn't mean we can't," said Councilman Gary Plass.
The garbage company's contract with Healdsburg expires in July, 2010.
One of the unknowns is how much interest there would be from other companies in taking over the Healdsburg franchise and whether rates would be any lower.
Redwood Empire two years ago took over from Waste Management Inc., which sold its franchises in Sonoma County.
Redwood Empire Disposal is an affiliate of the Ratto Group and North Bay Corp., owned by James Ratto of Santa Rosa, which holds exclusive franchises in all cities in the county except for Sonoma.
Pamela Davis, a representative for Redwood Empire Disposal, said Healdsburg residents have "about the lowest rates in the county" and a long term contract would lock in those rates.
Currently, Healdsburg residents pay $17.10 per month for the typical 64-gallon garbage can, compared to the average of $22.98 in the county. Santa Rosa residents pay $17.02 for the same size container.
The rates in Healdsburg could also go up if the city decides to increase the 10 percent franchise fee it imposes on the trash haulers' gross receipts. Currently the city collects about $250,000 a year from the franchise fee, according to Public Works Director Mike Kirn.
But city officials are also interested in reducing the amount of trash that goes into landfills. That likely will require more sophisticated recycling facilities, as well as establishing food waste composting options.
The discussion is also taking place while the county is trying to determine the future of the central landfill, which has been closed for several years due to groundwater contamination issues, leading to garbage being hauled to dumps outside the area.
Healdsburg officials said it may make sense to have a short-term contract until some of those questions are resolved.
In preliminary talks with Redwood Empire Disposal, the garbage company expressed a willingness to offer a number of inducements if the city extends the garbage contract for 10 years.
They include discounted rates of up to 20 percent for seniors and low-income residents and a discount for prepaid annual service, allowing customers who buy 11 months of collection to receive one month free.
And in exchange for the lengthy contract, Redwood Disposal indicated a willingness to provide sludge hauling from the city's new sewage plant at no cost. The sludge hauling now costs the city about $200,000 annually.
Public Works Director Kirn did not make a recommendation, but acknowledged Redwood Empire is a known quantity and their rates are "reasonable and competitive."
The company is allowed to raise its rates slightly less than the annual increases in the Bay Area consumer price increase.
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