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Contract modified for Howard trash collection

By Kevin Boneske
Staff Writer

HOWARD – After approving a contract extension a month earlier with Harter’s Fox Valley Disposal, LLC for the village’s residential trash and recycling collection, the majority of village board members agreed Monday, June 24, to modify the terms of that extension, which runs through 2027.

Prior to entering into the extension, the village had a seven-year agreement with Harter’s that ran through 2020.

Director of Public Works Geoff Farr said the contract extension initially included annual service cost increases of 2 percent, eliminated a fuel adjustment clause related to fuel prices rising or falling and continued the requirement to use compressed natural gas (CNG) trucks.

However, Farr said Harter’s asked to put the fuel cost adjustment clause back into the contract because the company indicated it would lose fuel adjustment revenue totaling approximately $20,000 per year.

“Needless to say, Harter’s, after thinking about this, realized they had made a mistake and that they need to have this (fuel adjustment clause) in here, because if fuel were to increase by… let’s just say seven years from now the price were even higher, it would ruin any possibility of profitability, and it wouldn’t be a good thing,” Farr said.

The fuel adjustment clause states there will be a monthly fuel surcharge when the CNG price exceeds $2 of the gasoline gallon equivalent (GGE) as sold at the lowest cost retail filling station in the village on the 15th of the month.

There would be a monthly collection fee increase of 1 percent for every 10 cents CNG fuel exceeds $2 per GGE.

However, if the price of GNC falls below $1.50 per GGE, the monthly collection fee would decrease by 1 percent for every 10 cents the CNG falls below $1.50 per GGE.

Farr said that price is currently about $2.49.

To get the village board to agree to put the fuel adjustment clause back into the contract, Farr said Harter’s offered to have no increase in the monthly trash and recycling fees for the first two years of the extension and then include annual increases of 2 percent for the remaining five years.

“They’re basically trying to offset the cost of the fuel escalator clause that was in the contract,” he said.

Trustee Adam Lemorande said Harter’s has done a “fantastic job” in the village, but he took issue with not allowing another company to bid on the trash and recycling contract.

“I don’t like it that we’re not letting this go through and bid on it,” Lemorande said.

Village President Burt McIntyre referenced an effort made in the Village of Suamico, which also has a contract with Harter’s, to get another company to bid on the trash and recycling service.

“I frankly resent other communities trying to change our mind,” McIntyre said. “And I frankly am concerned that the second bidder is now all of a sudden come forward and pushing, but being pushed by a member of the other community.”

At the June 17 Suamico village board meeting, action on a proposed extension with Harter’s for trash and recycling service was put on hold at the urging of Trustee Dan Roddan, who convinced the board to hold a closed session on the matter at the July 1 meeting.

McIntyre said Harter’s had a “handshake” agreement with the Village of Howard, which should stay with the company.

“I understand that sometimes you screw up on things, and you’ve got to backtrack a little bit,” McIntyre said. “I appreciate the counteroffer. I think it’s reasonable, and I think it’s professional that they’re doing it.”

Trustee Cathy Hughes said she favors having multiple bids for contracts with the Village of Howard, but “there is something kind of funky about someone from Suamico coming to us for a Suamico business.”

“I found that kind of funny,” Hughes said. “It’s nice that he’s supporting his Suamico businesses, but we have such a good thing going with Harter’s here. I would really hate to see it go.”

Andy Gayhart, general manager of Harter’s Fox Valley Disposal LLC, speaks Monday, June 24, before the Howard village board about the company modifying a contract extension with the village.

Farr said Harter’s “has provided good service to the village and done it extremely efficiently,” having saved Howard thousands of dollars in the past and now limiting the increases to 2 percent annually in the final five years of the contract extension.

“I don’t know if you can do better than that,” Farr said.

Andy Gayhart, general manager of Harter’s, said he is responsible for the mistake related to the fuel adjustment clause not being included in the contract extension.

“It was just an oversight in our office, kind of a miscommunication to a couple of people, myself included,” Gayhart said.

The board approved the modified contract extension on a 7-2 vote with Lemorande and Trustee Craig McAllister being opposed.

In the first two years of the extension, the monthly fees per resident, not factoring the fuel adjustment clause, will be $3.84 for trash and $2.31 for recycling, prior to the 2 percent annual increases taking effect.

In 2019, Village Administrator Paul Evert said the village expects to pay $451,900 with the residential collection contract it has with Harter’s – $282,900 for trash and $169,000 for recycling.

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