City weighs longtime refuse contractor bid with lower-priced competitor

Madison-based Pellitteri, the current provider’s bid was $9.25 per unit (household) for recycling/refuse and Milton-based Badgerland was $7.95 per unit. Both are lower than the current $10.10 per unit.

Two refuse/recycling companies are bidding for the city contract with the current contractor getting a higher score but a newcomer offering a lower price.

Madison-based Pellitteri, the current provider’s bid was $9.25 per unit (household) for recycling/refuse and Milton-based Badgerland was $7.95 per unit. Both are lower than the current $10.10 per unit.

If the city decided on Badgerland, there would be a $67 annual savings to city households for refuse/recycling service.

City staff recommended Pellitteri after it scored 83 out of 100, higher than Badgerland’s 69 score. Both companies were scored first with financials redacted from the contract and then again with costs put back in.

The companies also included options for weekly recycling collections. That service would cost city households an extra $65 annually with Pellitteri and $49 with Badgerland.

Both companies would provide service to an estimated 10,500 city households.

Badgerland Disposal Director of Business Development Kris Roesken said the company contracts with cities the size of Sun Prairie and larger in the Chicagoland market and the city scoring didn’t take that into account, so it came in lower.

Public Works Operations Manager Ben John said a survey sent to residents before the bid process showed a majority of respondents rated Pellitteri’s service favorably. City staff also reported a good experience with the current contractor, which also provides services to the cities of Middleton and Fitchburg.

“We’ve been pleased and impressed with their (Pellitteri’s) service,” John said at the March 30 Public Works Committee meeting

Public Works Committee members reviewed the bids for the first time at last Tuesday’s meeting, but District 1 Alder and committee chair Steve Stocker said the multi-million contracts need more discussion.

“Taxpayers look to the city to get the best price possible and we owe that to our taxpayers,” Stocker said.

Some public works members expressed some concerns about going with a company that the city hasn’t worked with before. The Badgerland Disposal contract has a 30-day opt-out clause, Roesken said.

The recycling/refuse contract is on the April 13 Public Committee of the Whole agenda. The committee will make a recommendation to the city council, which will vote on the contract at the April 20 city council meeting. Detailed information can be found at agendas.cityofsunprairie.com. Public comments on agenda items can be emailed to bjohn@cityofsunprairie.com

The current contract expires at the end of April.

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