Trash Talk Negotiating with Waste Removal Vendors

 Removing a multifamily community's trash and recyclables is an important job,  especially in a private development that is not served by municipal or city-run  sanitation services. And though it is crucial to their daily lives, most people  don’t think much about the garbage after they throw it in the chute or into a  container for pickup. But who removes the trash, how frequently it is collected  and what is recycled are concerns that many Chicagoland co-op or condo  residents should consider. Not doing so is tantamount to forgetting both the  association’s bottom line and its core services.  

 Public or Private

 While choosing a dependable waste hauling company is vital to good co-op/condo  management, hiring an outside contractor should be negotiated in the best  interests of the community. As such, the management team and board members  typically handle negotiations with the service companies that want to do  business with them. But the trick in making the most of these negotiations is  in knowing what questions to ask of a carter, as well as what to expect of  them.  

 Understanding what a community needs from its waste hauling company, as well as  what the hauler can provide for the community, are good places to begin  learning about the waste management process. Only after evaluating the  community’s needs and much more, such as what the association can afford, can a building  community determine which waste disposal solutions are best for them.  

 The main difference between private waste management companies and public  municipal sanitation services is often first defined by local law. Some  municipalities and cities have their garbage handled through municipal  services, and if you have such a service you usually can’t opt out of it. But even in communities that receive the city’s waste removal service, tons of garbage quickly accumulates from resident  move-outs, building renovations, evictions and other trash-generating  instances. Often, these situations are cleaned up by private waste carters.  

 Public waste removal services differ from private carting companies in a few  ways, including frequency of service. Chicago’s garbage trucks work on a set schedule, with changes dependent upon holidays.  Private carters, though, will remove garbage from a community or multifamily  building as frequently as the building’s management would like.  

 Private waste management companies will serve all of a community’s refuse needs, while municipal waste disposal services typically cater to  residential waste removal. With city garbage removal, a customer’s options are limited, while with private companies a ramge of services are  available.  

 “With private companies you typically get more innovations and efficiency,” says Rick Bulthuis, municipal services manager for Republic Services, a  national waste management company that is Chicago’s second largest carter. “We provide the full range of waste and recycling collection. It could include  multiple pickups a week, compaction equipment, and even educational materials  to inform residents about recycling. Private companies will serve all needs.”  

 Those needs, depending upon the community, might include special recycling days  for electronics or for old furniture pickup, for example. Electronics recycling  should be increasing in frequency in Illinois. Beginning this year, electronics  have been banned from landfills in the state, so more residential communities  should be contracting for the service if they don’t already have it.  

 Eco-minded residents are calling for changes, too. In some buildings, many  residents are very concerned with lowering their carbon footprint as well as  that of their vendors. In such communities, residents might find it worthwhile  to hire a carter that uses natural gas-powered vehicles because of their  greener impact on the environment.  

 Bidding and Vetting

 When a multifamily community can choose its carting service, residents have the  most say in how the service will be delivered to them. But they can only voice  those preferences if they know their options and what services are crucial for  them to receive. They also should know a bit about what factors contribute to  the waste management company’s pricing, such as fuel costs, which can fluctuate throughout the year, and over  which carters have no control.  

 As with any maintenance agreement such as one for landscaping services, signing  a private waste removal company should follow a routine course. First, a  management company publicizes an RFP (request for proposals) for carters  seeking a contract to perform waste removal services for the building  community. Specifications such as the parameters of the contract are provided  in an advertisement for carters, who respond by sending a proposal outlining  the work they will do under the contract and at what price. Having plenty of  options to consider before choosing a carter is recommended, so see that your  building’s RFP is distributed to many different companies. Having an open, competitive  bidding process is best so that the board/management team can weigh all their  options.  

 When responding to an RFP, employees of a contractor will assess the property to  research a bid before submitting the proposal. The carting company will want to  know how many days a week service will be provided to the building, and if  there will be any restraints to entrance to the building, such as a locked  garage that can only be opened by a security guard. Hours of operation issues,  and other potential problems such as questions regarding overhead wires or  clearance, also will be of interest to a carter, as will be the question of how  much trash the building generates.  

 Typically, waste removal contracts are for a term of one to five years.  Automatic renewal is usually not in force. Many waste management companies will  allow the building to renegotiate the contract before it is over, particularly  if different aspects of the contract no longer fit the building’s needs. Especially in this economy, where some buildings have many vacancies,  renegotiating a garbage removal contract could be important to the community’s fiscal health, Bulthuis says. “We want to be a proactive partner with all of our customers,” he says.  

 Republic Services, as well as many other waste management companies, try to  cater to the needs of its clients, however esoteric they might seem to others.  For example, some communities want to reduce unnecessary noise in the city and  will pay their vendors to help them do so. To be responsive to those needs,  some companies, such as the national carter Waste Management, are increasingly  using cleaner burning, quieter trucks which run on compressed natural gas.  These trucks run more efficiently, and many residents appreciate them being  used rather than the usual gasoline-run trucks, Waste Management spokesman Bill  Plunkett says.  

 Picking the right carter is more than a question of the company’s offerings, availability and price, though all three factors must be  considered. In considering who to choose, the board/ management team should  think beyond payment terms and ask how long the company has been in business,  as well as what its overall reputation is. Has it had any problems recently,  with authorities or lawsuits? Some carting companies have been known to violate  local laws by overloading trucks, which then damage local streets, or by  driving poorly maintained vehicles, which leak or pollute neighborhoods.  

 When vetting a carting company, the board/management team should first ask the  company whether it can provide all of the services the building community  requires. Can the company provide recycling services and if so, which kinds of  recycling? If, after the carter is hired there is an issue with the service,  can the building’s management contact the carter easily and have the staff quickly fix the  problem? What types of receptacles will the company provide to the customer as  part of the contract, and how many containers will be needed for the building  or individual owners? Can the carter provide educational literature for  residents, and will the company provide signage that might be needed for the  garbage containers/ trash receptacle areas?  

 Another key question to ask a potential carter is to ensure that their equipment  is safe and up to date and that the company keeps timely maintenance logs. You  should find out about the company’s hiring requirements and ask if the company has a drug testing program. The  board/management team should also check the company’s safety record with the state Department of Transportation.  

 It’s important to check to see that the company’s insurance—be it liability or vehicle insurance—is up-to-date, as well as its licenses for operation. Current registration of  vehicles with the state’s Vehicle Services Department also is crucial, since an omission in any of the  aforementioned areas should be considered a large red flag. A company that is  not properly licensed could be a fly-by-night firm.  

 It’s also important to know what the payment terms will be for the carter’s contract, and who at the building will be the financial point of contact for  the carter if anything goes awry with payments. Waste hauling companies are  often paid monthly, but some pay their drivers weekly and have their own  transfer facility, which could affect their pricing.  

 “A company like Waste Management is fully insured for any issue, but every  property has different needs,” Plunkett says. Some customers find it beneficial that Waste Management not only  has cleaner burning trucks, but also tipping facilities, landfills, and even  waste energy plants. These plants are fueled by solid waste, creating steam  power. To some customers, such vertical integration of the trash hauling  process just makes more sense, he adds.  

 Weighty Considerations

 Tonnage factors into pricing, which is why residents should be mindful of how  much refuse they are generating. There are ways to lower the amount of waste  going into the carting stream, though, such as through in-home composting kits  and by using garbage disposals.  

 When you think about how much solid food waste a typical homeowner creates each  day, the amount of waste that piles up, just from meals, is staggering. Food  waste is 70 percent water, and comprises a significant portion of all garbage  created by multifamily communities.  

 When a building reduces its food waste, it reduces its carting costs by reducing  the amount of tonnage that is carted. Garbage disposals get rid of all food  waste, including bones, by grinding it up and flushing it into the sewer  system. Disposed waste this way is seemingly a more eco-friendly management  method.  

 “The average homeowner generates two to five pounds of food waste per day,” says Clint Taylor, New York manager for InSinkErator, which is headquartered in  Racine, Wisconsin, and is the largest manufacturer of garbage disposals in the  country. “The purpose of the food waste disposer is to take the food waste out of the  solid waste stream, not have it carried away in trucks, and keep it out of  landfills.”  

 Whether your building or association opts to use a carting company, individual  disposal units, or even composting, the key is to remember that there are  multiple options for dealing with your community's waste. Hiring a waste  removal company is just like hiring any service professional; there's some  legwork involved in finding the best fit, and in establishing and maintaining a  good working relationship. Choosing the right company or technology can both  save money and reduce environmental stress but it's up to your board and  management to research the possibilities and make the best choice for your  community's needs.      

 Jonathan Barnes is a freelance writer and a frequent contributor to The  Chicagoland Cooperator.

 

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Comments

  • I agree that hiring a waste removal company is just like hiring a service professional and you'll need to consider their qualifications. I believe that cleanliness must always be maintained most especially in residential areas where the community is always at. I'd make sure to bookmark your blog and share this to our community.