CITY WILL SEEK PRIVATE BIDS ON TRASH SERVICE

Citing an overwhelming public reaction to a proposed trash fee hike, the Cape Girardeau City Council Wednesday unanimously agreed to seek bids on residential trash service from private haulers.

At the council's Jan. 3 meeting, a similar motion by Councilman Doug Richards failed in a 3-3 deadlock. The councilman's motion came in response to the fee hike that would increase monthly trash fees from $10.54 to $12.

But after two citizens -- one with a 200-signature petition of residents in support of bidding trash service -- asked Wednesday that the council reconsider the matter, the council voted 7-0 for Councilman Melvin Gateley's motion for the city to prepare proposal documents for private trash haulers.

Brenda Dohogne, a Ward 2 candidate for the city council, has repeatedly appeared before the council with suggestions regarding volume-based trash billing options.

On Wednesday, she implored the council to consider private trash collection as well.

"The city council owes it to the citizens of Cape to at least review the services and fees of private trash collection companies who would be interested in serving the city of Cape," Dohogne said.

Chad Craft, a student at Southeast Missouri State University, presented the council with the petition supporting Richard's motion from the last council meeting.

He asked the council members opposed to the motion to explain their position.

Councilman David Limbaugh said he wasn't at the meeting, but that he would have voted against the motion because he doesn't believe the city would be well served by a private monopoly running residential trash service.

"I philosophically favor privitization if we can guarantee there are free market conditions," Limbaugh said. "I'm not satisfied that there would really be enough players in the game to ensure true competition."

Limbaugh said he would first want to determine the cost for the city to reinvest in capital equipment after a private company takes over trash.

"My main concern is if we disinvest, what would it cost us to reinvest?" he said. "If a company doesn't comply with its contract obligations, do we really have an option to go back into it?"

Councilman Al Spradling III said he's opposed to privatization of trash pickup, because it's an essential city service, much like other utilities. He also echoed some of Limbaugh's remarks.

"If a company leaves, if their contract expires and there are no viable bids that aren't exorbitant, the cost of the city recapitalizing is very expensive," he said.

"What happens, in my opinion, once you get out of the business today, you're out of it. And the contract, whoever its with from now on, you're at their mercy."

Councilman Melvin Kasten said he lived in Cape Girardeau when a private trash hauler took care of solid waste. "I saw garbage in the streets for weeks until we had to take it over," he said.

Councilman Mary Wulfers told Craft that the economies of scale in solid waste ensure lower costs per household if one entity controls all the residential trash service.

"The question then is, who should have it, the city or a private individual?" she said. "The regulations from the state and federal government makes me fear putting it in hands that are out of our control.

"The ramifications for violations of those regulations still fall on the city, not a private contractor."

But Richards pleaded with the council to at least seek proposals from trash haulers, similar to the process used to secure proposals from riverboat gambling operators here.

"Haven't we already lost control?" Richards said. "If a private company tried to raise rates 360 percent in three years like the city's done, they could probably get out of the state without bodily harm, but they'd probably have to swim the river."

Stagnant commercial trash rates in Cape Girardeau, where private haulers compete with the city for business trash removal contracts, indicate that competition would stabilize residential rates as well, he said.

Mayor Gene Rhodes said he has long been in favor of bidding trash service to a private hauler.

Gateley said the private bids would be similar to other recommendations regarding volume-based billing already before the council.

The council set no deadline for preparing the bid document needed to seek proposals, and Limbaugh said his endorsement of Wednesday's motion doesn't mean the city ultimately will let the service for bids.