City chooses low bidder over current hauler for garbage collection

by Peter Jakey. Managing Editor

The city of Onaway has awarded a new three-year contract for residential garbage collection to L & R Disposal of Cheboygan. Even though their bid was substantially less than local hauler, PAC Sanitation, which currently holds the contract with the city, it was by no means an easy decision by the Onaway City Commission.

Republic Waste and Thunder Bay Sanitation also submitted official bids, which were publicly opened last Friday, but PAC had the highest at $9.30 a residence per month. L & R?s was $7.55 a residence per month.

CITY MANAGER Joe Hefele has been ?very pleased? with PAC?s service the last three years. ?The company has been great to work with, and I can?t recall communication being better between this office and a trash hauler.?

The difference in bids between L & R and PAC would be more than $20,000 over three years. Representatives from both companies were in attendance Monday night and offered their input.

Hefele told the commission he checked with representatives of Aloha and Grant Townships in Cheboygan County, where L & R provides service, and said the firm got off to a slow start, but they didn?t have any complaints to speak of currently.

Sarah LeCureux of PAC said two employees would be laid off if the company didn?t receive the bid.

?I HAVE A business in Onaway, and I know how tough it is to make ends meet in Onaway,? said commissioner Jessie Palmer. ?There?re two sides to this coin, I would like to keep it local, but I would like to lower the price and we can?t have it both ways.? Mayor Gary Wregglesworth said he appreciated the local business, however, ?$20,000 is a lot of money to our residents.?

?You are making a

decision for 320 households in different economic situations, and again, once you made the decision to take this to bid, and not to simply negotiate it with your current hauler, you were considering any and all bids,? said Hefele.

CITY OFFICIALS indicated the savings would be passed along to residents. ?We not there to make a profit on it,? said commissioner Bernie Schmeltzer. ?We want to cover the expenses and the time. Hefele added, ?We lock it in when we award the bid and we don?t raise it. It becomes more expensive to us as the cost of living adjustment kicks in each year, but we keep it the same.?

L & R?s bid was accepted 4-1, pending proof of insurance and performance bond. Palmer voted ?no.?

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