South Lyon extends GFL USA trash contract for four years; 3.5 percent rate increase set

A four-year extension of a contract for trash collection services with GFL USA has been approved by the South Lyon city council.

Residents, who pay for trash services quarterly, will pay $142.32 annually for single-family homes and $124.92 for multi-family units, effective July 1. That's a 3.5-percent increase.

Mike Csapo, Resource Recovery and Recycling Authority of Southwest Oakland County general manager, recommended that the city extend the contract. There were several questions the council needed to ask about an extension, he said, including whether the city was comfortable with the services provided by GFL.

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"I think that the answer is yes, but that is up to council to decide. Is the extension good or better than you would get if you put it out to bid?" Csapo said. "There will be no change in the service level."

Under the extended contract, the rate increases would continue to be based on the rate of inflation, but the top rate of the allowed range would be reduced from 3 percent to 2 percent. 

"Every three years, we do a deep dive into the budget for sanitation services. We look at how sharp the pencil is," Csapo said. "South Lyon is at the bottom or near the bottom for per household expenses. I would be very surprised if you got a better deal going out for bid."

South Lyon residents would be offered the option of a 64-gallon wheeled cart for recycling. Csapo said the city has a 45-percent rate for recycling, one of the higher averages in the area.

The current contract, which covers trash, recycling and bulk item pickup, was scheduled to expire June 30. GFL USA took over the contract in fall 2016 after acquiring Rizzo Environmental Services.

South Lyon was actually only served by Rizzo for a couple of months in 2016 after Rizzo had acquired Duncan Disposal Systems Inc. in late July. A South Lyon-based company, Duncan was a family business and had provided trash and recycling services to the city for a number of years.

In part, Csapo attributed the low rate for solid waste services to what he described as a sweetheart deal from Duncan for its local community. Some council members dismissed that idea, with Councilwoman Margaret Kurtzweil noting GFL could locate in the community to reduce expenses.

Kurtzweil also questioned the size of the carts and whether they would fit into garages, as some homeowners associations prohibit carts from being left outside. Residents would still have the option of using recycling bins, which were reported to have the same footprint as the carts, the only difference being in height.

"I like the carts. If you put the bins out on a windy day, stuff blows around. If I pick stuff up, it generally ends up in the trash," Mayor Dan Pelchat said.

The recycling carts create less litter, Csapo said, while allowing more space for recycling, overflow from the bin likely ending up in the trash.

The four-year extension also puts South Lyon's solid waste services contract  in line with six other RRRASOC communities, Csapo said, creating an opportunity for a joint bid. Other member communities include Novi, Milford, Milford Township, Walled Lake, Farmington, Farmington Hills, Wixom and Southfield.

lrogers@homtownlife.com