City scrambles for new recycler, may suspend service

Naples’ recycling contractor has opted not to renew its contract, and city officials are scrambling to find alternatives by mid-June — or they’ll be forced to temporarily stop recycling.

The possibility of suspending recycling pickup would occur later this month if city officials haven’t found a facility to take residents’ recyclables by 5 p.m. today.

“We need a little bit of leeway to contact property owners,” City Manager Bob Lee said Thursday, referring to today’s deadline.

Wednesday, Lee outlined the problem to City Council.

“Our problem is at this point, we don’t have a place to put these recyclables,” he said. “If we’re not able to find a source by the 9th or next week, I may have to make a recommendation to discontinue recycling.”

Council members appeared stunned at the costs.

“Where did they get these numbers from?” Mayor Bill Barnett asked. “Has there ever been that much of an increase?”

Lee explained that years ago, recycling was big business, billed as “Trash for Cash.” But recycling isn’t lucrative anymore and there are avoidance costs — the lack of tipping fees based on tonnage — that make it cheaper not to recycle.

“This is actually kind of scary,” said Vice Mayor Johnny Nocera. “We’ve all been told recycling is important.”

Councilman John Sorey also questioned such huge cost increases. “Twenty-five percent, I wouldn’t be surprised. Three hundred percent, I’m surprised,” he said, urging Lee to ask Waste Management where it carts its recyclables.

Councilman Gary Price urged him to check what the county pays.

City officials are looking into handling recycling through its Solid Waste Division, but they need to buy trucks, 2,800 65-gallon recycling carts, and 200 18-gallon recycling bins. That, coupled with other problems, will take time.

The city’s contractor, Waste Management Inc.’s, $238,824 yearly contract expires June 19 and includes $2.35 for curbside recycling bins and $14.35 for the multifamily service. Waste Management’s recyclables are then sorted at a facility in Orlando.

The problem began unfolding four months ago, when Solid Waste Manager Kenneth Lee Resor met with Waste Management’s district manager, Larry Berg, on Feb. 2 to discuss details of the 65-gallon cart pilot program. In a memo to Lee, Resor said he asked whether the company planned to extend the recycling contract, but Berg said he would need to complete a cost analysis and would contact him. The pilot program ran from Feb. 16 to March 23.

After not hearing from Waste Management, Resor said he e-mailed a formal request for a decision on March 15.

In a March 28 letter to city officials, Berg wrote that the company had experienced costly increases over the past few years, in addition to increasing fuel costs, expensive housing and an inability to attract labor to the area. It decided to exercise its option not to extend its curbside recycling contract for a second renewal period.

Naples then sought bids for recycling and received only two — from Waste Management Inc. and World Waste Services, which were opened May 18. Waste Management was the lowest bidder, at $707,855.76, to provide the current bin service, or $876,183.12, for the curbside service with optional 65-gallon containers — increases of 296 and 367 percent.

“The bids are too high and cannot be justified simply based on the cost of the vendor to provide the identified service under the curbside and centralized recycling contract,” Public Works Director Dan Mercer wrote Lee in a June 1 memo.

Mercer suggested seeking bids for a vendor to accept the city’s recyclables on a per-ton basis with an annual renewal, or provide a dual sort system — using two bins for different recyclables — and transport them to Lee County’s Material Recovery Facility. There, they would be accepted with no processing cost.

By doing that, Naples also would have to purchase 2,800 recycling carts, seek bids for two rear- or side-loading recycling collection vehicles consistent with the city’s fleet. Mercer said council also would have to authorize four new positions for the Solid Waste Division — two equipment operators and two service workers.

He also suggested suspending the recycling program until city officials can implement the in-house program. If that occurs, his memo says, residents would have to be notified by next Wednesday.

Berg and other Waste Management officials could not be reached for comment Thursday.

City officials are recommending the in-house option. “We could provide the service for approximately $415,000 a year, a significant savings,” Lee told council.

Mercer’s memo breaks down that cost, with the four employees and benefits totaling $180,760 yearly; $60,000 for two vehicles amortized over five years; $138,600 for 2,800 65-gallon containers; $1,155 for 200 18-gallon recycling bins; $20,000 for fuel; $10,000 for vehicle maintenance; and $5,000 for water coolers, brooms, and other related items.

Mercer says the first-year cost is high due to the purchase of carts, but would drop to about $300,000 yearly after that. He suggested that Naples rent recycling vehicles from RKT Rentals of Tampa for $4,950 monthly until the city can purchase its own vehicles. Two experienced staff drivers would be assigned the recycling driver duties until others could be hired. Until then, Mercer wrote, temp workers could be used.

Nocera joked: “We’ll have to contact ‘The Sopranos.’ ”

Lee will present council with his findings at the 8:30 a.m. Monday council workshop.