City of Toledo (Ohio) Mayor Michael Collins is considering bringing privatized garbage collection back in-house, stating the contract is too favorable to the company, The Blade reported.
The city bills residents, pays the company, and pays an additional $670,000 to make up the difference between what it collects and the company’s bill of $9.4 million. The contract also includes a 3% annual percent increase and a separate increase if diesel costs rise above $4 per gallon.
The city privatized the service in 2011. Proponents said the city would save millions as its trash collection department cost $16.5 million, and fees generated only $9 million.
The mayor has ordered a cost-benefit analysis of bringing the service back in-house.