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STERLING HEIGHTS — Sterling Heights will soon have a new company in charge of taking out the trash for the next decade.
The Sterling Heights City Council looked at its waste hauling priorities and voted 5-2 to make Priority Waste LLC its new contractor for picking up residents’ garbage, yard waste and recyclables for the next 10 years. Councilman Michael Radtke and Councilwoman Deanna Koski voted no.
During the Sept. 19 council meeting, Sterling Heights Public Works Director Michael Moore said Sterling Heights has been using GFL Environmental USA Inc. as its waste hauler, but the current contract lapses at the end of April 2024. As a result, the city sent out a request for proposals this past May so that a contractor can pick up the job for May 2024.
The city got bids from its existing hauler, GFL, as well as Priority, Waste Management of Michigan Inc., and FCC Environmental Services LLC. City officials also said they interviewed the companies in June and judged them based on past experience, knowledge, success, references, technology, cost and more.
In the end, officials recommended picking Clinton Township-based Priority. The contract will last from May 2024 until the end of June 2034. Among other things, officials cited Priority’s price tag and technology for making it the right choice.
Jennifer Varney, Sterling Heights’ finance and budget director, gave the breakdown on the proposed bids among the companies. The lowest bid, Priority, had a 10-year contract cost of around $88.3 million, which is around $23.2 million cheaper than second-place GFL, at around $111.5 million. Priority gave the city a million-dollar discount in exchange for seeking a 10-year contract, Varney said.
Varney said the new contract will cost the average household $135.96 per year, which is $29.03 more a year compared to the current cost for 2023-24. The average household that optionally subscribed to GFL’s curbside recycling for $57 per year will save around $17.47 on recycling annually by using Priority’s service, she added.
In addition, Priority plans to allocate $75,000 toward teaching the public about the transition, recycling and carts. City officials expect a rollout of the informational campaign sometime around January.
Varney said Priority’s pricing and the ability to lock that in for a decade stood out to her.
“The $88 million for the 10-year contract averages out to $8.8 million over the 10-year period,” she said. “That’s lower than the year-one cost of the second-lowest bid and an average annual saving of $2.3 million over a 10-year period.”
Priority’s plan will include giving each home rolling carts to drop off waste at the curb for collection. That includes a 95-gallon cart for trash and a 65-gallon cart for recycling. Residents may either buy a 95-gallon cart for yard waste or use qualified paper bags, city officials said.
During the meeting, Councilwoman Barbara Ziarko said that storing disposable items in carts could keep critters from making a mess.
“I’m tired of seeing garbage on the street, especially after an animal has gone through a bag, and it’s all over,” Ziarko said.
For residents with disabilities or who are age 67 and up, Priority will offer an assistance program to help them bring the carts to the curb for $180 per year, officials said.
Several officials also lauded the move to give residents universal curbside recycling as a sustainable way to help the environment while offering an amenity that many other metro Detroit communities have.
By doing universal curbside recycling, the city expects the recycling rate to double. Universal curbside recycling also means that Sterling Heights could shut down its Clinton River drop-off recycling center, saving the city $150,000 annually.
The upcoming contract will also cover special events to receive residents’ hazardous waste, recycle electronics, or shred paper, officials said.
According to city officials, Priority’s trucks are supervised via cameras and GPS technology while they are working. Priority CEO Todd Stamper discussed his business’s innovations during the meeting.
“What got us in this industry is the sheer fact that it was stagnant and there’s a different way to do things,” Stamper said. “Disruptors come in to make businesses better, no matter where they’re located. We looked at how things are done and knew there was a better way.”
Councilman Michael Radtke said he would’ve been more comfortable with a shorter, five- or six-year contract with an option to extend it to 10 years. And he was concerned about the possibility of multifamily properties lacking access to recycling services.
Near the end of the discussion, Radtke also proposed a motion to postpone the agenda item until November after finding out that Priority lacks a diversity, equity and inclusion plan, but that motion failed with three yeses and four nos.
During the meeting, Joseph Munem, government affairs director for GFL, said his company would like to continue working with the city, adding that GFL has a physical presence in Sterling Heights with an operation yard. Mayor Michael Taylor said GFL “did an exemplary job” and thanked the company for its work. But Taylor alluded to Priority’s significantly lower bid as a reason why he voted to switch companies.
“I’m proud that you have a presence in the city of Sterling Heights. I’m sad to see the relationship looks like it’s likely coming to an end,” Taylor said. “At the end of the day, the numbers here are just too stark. They’re just too far apart, and I’m not sure that that gap could be bridged through any sort of creative process.”
Learn more about Sterling Heights by visiting www.sterlingheights.gov or by calling the Sterling Heights Department of Public Works at (586) 446-2440. Find out more about Priority Waste by visiting prior itywaste.com.
