DeKalb drops longtime trash hauler for lower bidder

DeKALB – “Thank you. I am now out of a job,” an employee of Waste Management said to the DeKalb City Council as he left Monday’s meeting after the supermajority approval of a new solid waste service contract with Morton Grove-based Lakeshore Recycling Systems.

Waste Management’s current contract is set to expire Aug. 31. With that in mind, the city’s public works department sought bids for a new contract for about 9,000 DeKalb homes earlier this year. Lakeshore Recycling came in with the lowest bid, which would cost about $1.32 less a month a household than Waste Management’s best bid.

During follow-up discussions, the council approached LRS about reducing its price for street sweeping roll-offs from $18 to $11 a cubic yard. Lakeshore agreed to this provision as well as an offer to provide the city with an annual credit of $25,000 to cover any services requested by the city. Waste Management, however, continued efforts to negotiate through Friday afternoon and agreed to match Lakeshore’s contract costs.

But in a packed council chamber with no air conditioning because of a broken chiller, the revised Lakeshore contract competitive bidding waiver was ultimately passed by a 6-1 vote with 3rd Ward Alderman Michael Marquardt voting “absolutely no.” Fifth Ward Alderwoman Kate Noreiko was absent.

Households currently pay about $20.60 a month for solid waste services. Lakeshore would charge about $15.58 for base rate services, plus household hazard waste and e-waste services starting in 2018-19, compared with Waste Management’s $16.90.

A number of Waste Management proponents spoke in support of retaining the longtime provider, feeling a small sacrifice in cost would be compensated by exemplary service.

Vaughn Kuerschner, public sector representative for Waste Management, said on behalf of the city’s 44 employees, many of whom live in DeKalb, that great service has been the cornerstone of the company’s long relationship with the city.

Waste Management employee Dion Sutton said he became more vested in the community through his work and even coached basketball for a young boy he met on the job who went on to play for Northern Illinois University.

“Investing in the neighborhood is what we do. It’s who we are,” Sutton said. “It’s not just because we work here, but it’s because we live here.”

DeKalb resident Dwayne Brown said after more than 20 years of service, the worst complaint he had for Waste Management was when one of his cans fell over and was not picked up. He said that the community knows what to expect if Waste Management continues service, but it is unclear what Lakeshore’s level of service will be or how long that transition period will be come Sept. 1.

Josh Connell, managing partner for Lakeshore, admitted that the price may help the decision, but the company did not establish more municipal contracts in the area over the past five years without fantastic customer service.

“We’re not doing it based on good looks and pretty trucks,” Connell said.

First Ward Alderman David Jacobson voiced frustration in Waste Management’s post-bid negotiations and said it erodes the confidence of the competitive bidding process. For the company to come down on their initial bid as much as they had, Jacobson said Waste Management should have blown competitors out of the water.

“[Waste Management] should’ve been the lowest bidder with ease,” Jacobson said. “The question I have is why not? That frustrates me especially when understanding the reality of the situation.”

Fourth Ward Alderman Patrick Fagan said that the purpose of going out to bid is to find a lower cost and although there may be some small monthly savings with Lakeshore, disrupting the integrity of the bidding process could have serious consequences in the future.

“If people look at us and see we stayed with Waste Management after this, that can cost hundreds of thousands of dollars if we come off a bid,” Fagan said.

Before removing a provision concerning yard waste, Marquardt said in his point of view that the better service and savings directly to the city were going to come from Waste Management.

DeKalb Mayor Jerry Smith said the decision comes down to weighing a good community partner like Waste Management versus adhering to the integrity of the bidding process. However, it has been clear that the council, for the most part, has adhered to the practice of accepting the lowest bid.

“It’s been alluded to several times tonight that no issues has evoked more comment and public comment and, frankly, more public support for one of the bidders than this,” Smith said. “I can honestly say Waste Management has done a remarkable job, and if the decision were solely mine, I would, like [Seventh Ward Alderman Anthony] Faivre, be hard pressed to make a decision.”