Detroit picks 2 companies to privatize residential trash service

**Vic01** · November-14-13, 11:04 PM

The City of Detroit has picked two waste-disposal companies to take over residential service and recycling, a deal expected to save the city $6 million a year.
Rizzo Environmental Services and Advanced Disposal Services won the contracts after bid requests were issued over the summer. Emergency manager Kevyn Orr made the announcement in a letter dated Nov. 7 to local union heads.
The city will now negotiate five-year contracts with the two firms based on their proposals, Orr spokesman Bill Nowling said.

http://www.freep.com/article/2013111...rizzo-services

**sumas** · November-15-13, 05:44 AM

Would love dependable trash services again. Recyling services are appealing too. Currently our pick up is Friday but............never know when or if it will get picked up. Detroiters pay a fee on top of taxes for trash hauling and sure are not getting our moneys worth.

**Wingnatic** · November-15-13, 06:57 AM

Rizzo has the contract in my city and they do a good job

**Baselinepunk** · November-15-13, 07:29 AM

Originally Posted by Vic01

The City of Detroit has picked two waste-disposal companies to take over residential service and recycling, a deal expected to save the city $6 million a year.
Rizzo Environmental Services and Advanced Disposal Services won the contracts after bid requests were issued over the summer. Emergency manager Kevyn Orr made the announcement in a letter dated Nov. 7 to local union heads.
The city will now negotiate five-year contracts with the two firms based on their proposals, Orr spokesman Bill Nowling said.

http://www.freep.com/article/2013111...rizzo-services

Wholly cow! 6 million bucks?

That's great; it's only about a half of a billable hour for Jones Day ....

**renf** · November-15-13, 09:08 AM

What are the implications of this development for the Detroit incinerator?
Are these firms obligated to take the trash to the incinerator or can they
use the less expensive land fill disposal method? Does anyone know how
Kevyn Orr views the Detroit incinerator and what future he sees for it? It
is difficult to believe that Judge Rhodes could get much for the Detroit
incinerator if he order it to be sold.

**Gistok** · November-15-13, 11:13 AM

Originally Posted by Baselinepunk

Wholly cow! 6 million bucks?

That's great; it's only about a half of a billable hour for Jones Day ....

And they're throwing in monthly big trash pickup... what a silly luxury... Detroit doesn't need all that large garbage picked up... it looks so much better strewn in empty lots...

**MizMotown** · November-15-13, 02:03 PM

more jobs for the countrymen!!

**sumas** · November-15-13, 05:25 PM

Hey ho, my trash got pickup along with my state mandated approved leaf bags. kinda creeped me though, that a supervisor truck was there too. I had better not get a blight ticket. Then the vehicles went down the street and stared at trash piles for like 1/2 hour. Honest folks, none of it mine all awaiting big trash day on the 22nd. None even huge, we have lots of seniors that rely on grandkids to help move the junk. I don't grump about that stuff. Reality sets in but frankly city depts annoy me.

**Baselinepunk** · November-15-13, 05:41 PM

Originally Posted by Gistok

And they're throwing in monthly big trash pickup... what a silly luxury... Detroit doesn't need all that large garbage picked up... it looks so much better strewn in empty lots...

Shit, they better keep those Bulk Ejection dates on the down low because if the "Burbs" get wind of them, the south side of Baseline is gonna be a trash berm ten feet high. Then after folks in Detroit dig outta that crap, perhaps they'll be able to get rid of their Bulk as well. 8^O

**sumas** · November-15-13, 05:49 PM

Actually that is quite true that burb contractors dump in the city. Seen it happen.

**Baselinepunk** · November-15-13, 05:59 PM

Originally Posted by sumas

Actually that is quite true that burb contractors dump in the city. Seen it happen.

fuckin' A, right?

It's pretty common; unfortunately, for all the whole region. I've seen it happen, or the results of it, quite a bit south of Baseline from M1 east to I-75. I drive through my old neighborhood quite often wonder just how the magic wand of an 18 month EM and bankruptcy will even affect these areas and people, let alone, be the cure for the long haul.

**lpg** · November-15-13, 08:51 PM

Rizzo won out over Waste Management in Lincoln Park. They do OK.

**Gistok** · November-15-13, 10:14 PM

Originally Posted by sumas

Actually that is quite true that burb contractors dump in the city. Seen it happen.

Oh no doubt... and unfortunately that will likely continue to happen... but 3 years ago when I saw mattresses and sofa cushions sitting on the curbside at Chandler Park Drive. in Balduck Park... I knew that those were likely local folks who didn't want to wait until the next quarterly bulk pickup day.

**Wingnatic** · November-16-13, 08:29 AM

Just think the city won't have to buy and maintain garbage trucks , pay employee's benefits , hopefully they'll hire the current employee's and more city residents

That Great Guy · November-16-13, 02:14 PM

It might appear to be a Smart idea to privatize services in Detroit and nearby suburbs, but it is not.

**313WX** · November-16-13, 02:28 PM

Originally Posted by That Great Guy

It might appear to be a Smart idea to privatize services in Detroit and nearby suburbs, but it is not.

Safety, eh? Interesting argument...

My biggest fear with privatization is the price gauging. Once Detroit dismantles its sanitation department, it'll be at the complete whim of the contractors when it comes to the fees and payments [[and if the city misses a bill, we're SOL).

As long as the current sanitation workers are rehired by the contractors, I'm not as tiffed about the loss of union jobs [[granted this isn't the preferred option).

The cutting of corners would be a fear too. But that's something Orr should work out before getting us stuck in these contracts [[I.E. if the contractor fails to service a certain area, we wil withhold payments).

**Hermod** · November-16-13, 03:21 PM

Originally Posted by 313WX

Safety, eh? Interesting argument...

My biggest fear with privatization is the price gauging. Once Detroit dismantles its sanitation department, it'll be at the complete whim of the contractors when it comes to the fees and payments [[and if the city misses a bill, we're SOL).

As long as the current sanitation workers are rehired by the contractors, I'm not as tiffed about the loss of union jobs [[granted this isn't the preferred option).

The cutting of corners would be a fear too. But that's something Orr should work out before getting us stuck in these contracts [[I.E. if the contractor fails to service a certain area, we wil withhold payments).

There are enough competitors in the biz to ho;d the prices down. Just make sure there are no loop holes in the contract. I have lived in quite a few places with contract garbage and trash pickup and it seems to work real well. I get garbage and trash twice a week, yard waste and bulk items twice a week, and recycling one a week. If they leave a mess, I call the city, and within a couple of hours some guy from the contractor shows up in a pickup tuck and cleans up.

**DetroitPlanner** · November-16-13, 03:59 PM

The bulk collection dates was easily one of the dumbest money-saving moves ever made by the City. It can be several months between pick-ups so one of two things happen:

1. people save all of their junk and need to plead with neighbors to help the pull out things that can be as heavy as old refigerators from their yards or garages. It can take a whole day to clean up just a few blocks.

2. People say "F-this!" and find an empty property close by to dump their crap. This makes the neighborhood look worse.

That Great Guy · November-16-13, 08:22 PM

Originally Posted by 313WX

Safety, eh? Interesting argument...

My biggest fear with privatization is the price gauging. Once Detroit dismantles its sanitation department, it'll be at the complete whim of the contractors when it comes to the fees and payments [[and if the city misses a bill, we're SOL).

As long as the current sanitation workers are rehired by the contractors, I'm not as tiffed about the loss of union jobs [[granted this isn't the preferred option).

The cutting of corners would be a fear too. But that's something Orr should work out before getting us stuck in these contracts [[I.E. if the contractor fails to service a certain area, we wil withhold payments).

The argument is YES, contractors do cut safety. I edited this but the taxpayers can get inferior products or services. For example poor radios or vans to take people to the doctors with bad brakes and stuff. Poor garbage service could mean lots of rats and that is unsafe.

**mwilbert** · November-16-13, 08:42 PM

Originally Posted by That Great Guy

The argument is YES, contractors do cut safety. I edited this but the taxpayers can get inferior products or services. For example poor radios or vans to take people to the doctors with bad brakes and stuff. Poor garbage service could mean lots of rats and that is unsafe.

Well, it is true that you have to monitor contractors to make sure they are doing what they are supposed to do, but one reason garbage collection is so popular as a outsourced service is that it is pretty straightforward to track whether it is being done properly.

**coracle** · November-17-13, 02:58 PM

My suburb trash is collected by REPUBLIC SERVICES. They are EXCELLENT. They send three separate trucks that pick up trash, recyclables and yard waste. Most dependable and never miss a pickup. You could set your clock by the trash pick up. At this time of the year we have to bag the leaves. As the Fall is late this year we have a lot of bags this week. Put them out Saturday night for Monday collection. Noon on SUNDAY they had gone. Services for profit will beat the tendency of the inbreeding of Public "Services" every time.

**Hermod** · November-17-13, 06:11 PM

Originally Posted by That Great Guy

The argument is YES, contractors do cut safety. I edited this but the taxpayers can get inferior products or services. For example poor radios or vans to take people to the doctors with bad brakes and stuff. Poor garbage service could mean lots of rats and that is unsafe.

Tell us about the wonderful government operated DDOT buses.

**corktownyuppie** · November-17-13, 10:17 PM

Privatization is not a cure-all. Staunch dedication to public employment is not a cure-all.

A public waste management system could have worked had the department been willing to bring their costs [[both on management...or eliminating mis-management, if you willl...and labor) in line with the private market. It could have been great. We would have had a public works system with all the "profits" going into the General Fund.

But either because of lack of willingness or ability, they couldn't get it done. So now we go to Plan B...privatization. From every suburb I know that has outsourced waste management, it's been a positive experience. But that doesn't mean it will be a positive experience for us. It depends on the contract and the oversight.

The point I'm trying to make is that we have to stop looking at "privatization" or "public-ization" as the enemy. Either or both could be workable...in theory. We've had public employment for 100+ years. It hasn't been working lately.

Let's try privatization. If we really don't like it, there's nothing to stop us from going back.

**milesdriven** · November-18-13, 12:07 AM

Trash pickup was privatized several years ago here in Toledo. When it was run by the city, bulk pickup was every week, you had to supply your own trash cans but could use as many as you needed, and rates were reasonable. When the contractor took over, cans were supplied for automated trucks. Bulk pickup was promised to be available every week on demand if you called ahead, but soon changed to once per calender year quarter per address. Rates increased 700%. The official policy for disposal of TVs and appliances is "leave them out for the scrappers". Trashed vacant lots are becoming more commonplace. This may work well for Detroit, but beware bait and switch.

**wolverine** · November-18-13, 01:20 AM

Originally Posted by corktownyuppie

Privatization is not a cure-all. Staunch dedication to public employment is not a cure-all.

A public waste management system could have worked had the department been willing to bring their costs [[both on management...or eliminating mis-management, if you willl...and labor) in line with the private market. It could have been great. We would have had a public works system with all the "profits" going into the General Fund.

But either because of lack of willingness or ability, they couldn't get it done. So now we go to Plan B...privatization. From every suburb I know that has outsourced waste management, it's been a positive experience. But that doesn't mean it will be a positive experience for us. It depends on the contract and the oversight.

The point I'm trying to make is that we have to stop looking at "privatization" or "public-ization" as the enemy. Either or both could be workable...in theory. We've had public employment for 100+ years. It hasn't been working lately.

Let's try privatization. If we really don't like it, there's nothing to stop us from going back.

Agree. And it doesn't always work for all services. In my city, privatization of parking failed, but privatization of waste pickup worked. Trucks arrive at the same time every day. My building engineer has got the compactor bins rising from the basement at 8:15. If the garbage truck is past our door, I'm late for work. That's service reliability. If public services can't be as reliable, cut them and hire private companies to do the work. If those fail, better hope you have them on a short contract.