The City of Detroit has privatized waste management services as part of its bankruptcy recovery plan and is auctioning off its aging fleet of refuse trucks. Last week, the city awarded $122.6 million in contracts to two commercial haulers for the work.
Outsourcing waste management will save the city $40 million over 10 years, according to Emergency Manager Kevyn Orr. Orr filed his recovery plan Friday with the U.S. Bankruptcy Court that calls for major fleet upgrades for police, fire, and EMS.
The City Council approved contracts for two commercial trash contractors on Feb. 18 to divide the city in half for service. Advanced Disposal Services and Rizzo Environmental Services will be paid $73.5 million and $49.1 million respectively under the five-year contracts. They will begin service on June 1 and May 1.
In the meantime, the city will auction off its aging fleet of refuse trucks, reports the Detroit Free Press. Most of the 120 trucks are 14 years old. It would cost the city about $35 million for new equipment, reports the Detroit News.
Between 30 and 35 of the 165 active city refuse workers would be retained by the city to focus on illegal dumping. The companies will hire 132 workers and give preferential treatment to displaced workers.