SOUTH PITTSBURG, Tenn. - When South Pittsburg's current garbage service provider informed officials it would need a rate increase in the next fiscal year, the city put the service out for bid.
Now, it appears no matter what city leaders do, garbage rates are going to increase.
At the May meeting of the South Pittsburg City Commission, City Administrator Gene Vess said the town received only one bid, from Republic Services in Chattanooga.
That service would require specialized 96-gallon trash receptacles, which are emptied with an automated arm on a garbage truck operated by one person.
According to the proposal, South Pittsburg would get 1,283 receptacles, or one for each residence and some businesses, at $13.50 each per month.
The contract would total $17,320 per month.
Residents or businesses could purchase a second trash receptacle separately for $6 more per month.
Commissioner Ronnie Lancaster said he didn't like that the bid was "per can" instead of "per household."
"I don't consider [Republic's] bid," he said. "The bid was per house, not per can. There ain't nothing that says if you've got two cans, you've got to pay extra."
Currently, South Pittsburg charges $10 per month for garbage services.
The current provider gets $9.50 of that $10, but somehow ,the town still loses money on the service.
"Normally, we have to contribute out of our general fund to pay that every year," Vess said. "We've been putting back in $5,000 per year just to cover what we can't make."
Mayor Virgil Holder questioned whether Republic's larger automated trucks could navigate some of the tiny mountain roads inside the city limits and if city leaders would have to raise garbage fees if the board accepted the bid.
"We would have to raise it," Vess said. "Bear in mind, this is the only bid we got. In order to accommodate this bid, we wouldn't be able to afford to do it without taking additional money out of our general fund to pay for it."
Holder said that means the proposed contract would be "basically upping taxes."
"You can call it a fee or surcharge or anything, but it's a tax," he said.
One resident said the current provider is owned locally and employs local people.
"They're doing a fine job for me right now," the resident said. "I'd much rather use the money here, spend it here, keep it here, if we can do that."
Vess said the current provider didn't bid for the services.
David Abbott, a co-owner of that local garbage service provider, said he looked in the local newspaper and didn't see an ad for the bidding process.
"As a local provider, communication goes a long way," he said.
Vess said the ad was placed in the Times Free Press and two Jackson County, Ala., newspapers.
It was not in Marion County's local newspaper.
City Attorney Billy Gouger said one of the newspapers based in Alabama covers some of Marion, too, but it would not be considered a local newspaper for advertising requests for bids in South Pittsburg.
Vess wouldn't reveal how much the current provider wanted to raise rates because it wasn't "important or fair" but said, "it's less than what Republic wants."
"Either way you go, whether we say no to Republic, rebid it, let [the local company] bid it or whatever, there's going to be an increase," he said.
The board voted unanimously to reject Republic's bid and put the garbage service out for bid again.
A Republic Services official at the meeting complained the current provider now has seen Republic's proposed prices, but Republic hasn't seen that company's proposed increase.
"We've had a bid open, and it's open to the public, and everyone sees the price," the Republic representative said. "It puts the current bidder at a disadvantage."
He said the local company easily could undercut Republic on the next round of bids and get more of an increase than it was already planning.
"We done voted on this," Lancaster said. "Move on."
No other city leaders acknowledged the Republic representative's criticism.
Ryan Lewis is based in Marion County. Contact him at ryanlewis34@gmail.com.