Asheville – It may be a negotiation tactic, but the Buncombe County Commissioners are considering contracting with a new waste hauler. Solid Waste Director Dane Pedersen said the county has been in negotiations with Waste Pro over an extension of the current franchise agreement. That five-year contract, which provided weekly trash and biweekly recycling pickup in unincorporated areas of the county, had a start date of January 1, 2020, with options for two, two-year extensions.
Chip Gingles, vice president for Waste Pro’s North Carolina operations, said mid-contract rate increases were necessary to keep up with increasing expenses for procuring and operating trucks, including fuel costs. To illustrate, he said that some of the trucks that were ordered at the beginning of Waste Pro’s contract cost $155,000–$160,000 more now. Waste Pro runs 50 trucks in Buncombe County, and a good one can cost $400,000. In addition, movement is underway to do away with diesel-fueled trucks. California regulators, for example, have banned their sale after 2036 and their operation after 2042. Electric garbage trucks can cost up to $800,000 today. Payroll had also increased by 9% since the contract was entered into in 2020.
Gingles said increasing costs had forced hauling contracts to increase by 20–40% elsewhere in the state. Catawba was the only county mentioned with lower fees. It charges its customers $22.15 monthly, compared to Buncombe’s current rate of $22.55. Gingles said $22.15 was the rate with recycling services; Catawba imposes a $6.62 monthly penalty on households opting out. He added that a significant factor keeping costs down in that county is tipping fees, which are about 25% lower than Buncombe’s.
Waste Pro wanted to raise rates every year. From 2024 to 2026, they would charge $22.55, $25.16, $28.52, and $32.05. After that, rates would be determined by the Consumer Price Index (CPI). If people wanted an extra recycling bin, they would pay $5.91 upfront and a couple dollars more each month. The option of having an extra recycling bin was added because the 96-gallon roll carts used in Buncombe County are sufficient for the typical household. So, running countywide recycling operations on a weekly basis would wastefully impact the entire triple bottom line. It was also not advisable to pick up recycling weekly for some and biweekly for others, as this would slow service and increase risks for missed pickups, cheater pickups, and customer disputes.
Economist David Friedman explained that one of the compelling reasons for entering into contracts is cost savings. Namely, it was the “cost of getting used to each other” that was spared with long-term engagement. An illustration comes from the early days of WatePro’s contract, when they were called before the commissioners to account for the huge volume of complaints they were receiving for missed pickups in the county’s remote coves and crannies. Waste Pro responded by doubling down. In the days that followed, the streets were “flooded” with Waste Pro trucks. It was difficult not to cheer them on as they rallied to make up for past mistakes or when two haulers were spotted stopping in the middle of the excitement to help a stalled motorist.
“We know the local community better than anyone else,” said Gingles. Waste Pro had been in Buncombe County since 2009, and it was the only hauler to submit a complete bid for all services requested in the county’s last RFP. Most large haulers run one-size-fits-all operations, he said, but Waste Pro can run fully automated trucks where it is cost-effective and dispatch old-fashioned trucks on narrow, steep, winding, and rugged roads. Further, Waste Pro does not require all property owners to pay for hauling, whether or not they use it. Instead, it serves the 60% of residents who want the service. In addition, it has been serving thousands of premium, or backdoor, customers who, being elderly or disabled, request that the haulers take their trash down the driveway for them. Most importantly, Gingles said, “We want to be here, and we enjoy service in the community.”
Gingles said out of 2.4 million collection service events since January 1, Waste Pro has only had 82 complaints, and he did not know how many of those were “verified.” As an example, he said one time a complaint consisted of a guy calling to say, “I’m out here with the air horn keeping the bears away from my cart.”
Following the prepared presentation, Commissioner Terri Wells explained, “If Waste Pro had honored the original contract with those CIP adjustments, I would feel comfortable doing the extensions. However, since they’re increasing the rates for our residents beyond that CPI, I feel compelled to go to bid.” Chair Brownie Newman agreed, and, following a short closed session, the commissioners voted unanimously to enter into an RFP process.