Residential Solid Waste Service Changes Effective July 1

The City of Germantown has approved a new five-year solid waste contract that takes effect July 1. The agreement ensures the continuation of residential trash, recycling and yard waste collection services while addressing significant increases in industry costs since the City's previous contract was established in 2016.

This page provides information about rates, service changes, the procurement process and frequently asked questions. 

Looking for a quick reference? Download a one-page summary of the new sanitation contract.

Cost Increase and Value

Why are rates increasing?
The new rate reflects current market conditions after more than a decade of stable pricing. Key drivers include:

• Legacy contract expiration: Rates remained flat for 10+ years while industry costs rose significantly, especially after the pandemic
• Regional market trends: Southeast municipal contracts have increased 30% to 150%; Germantown’s adjustment is toward the lower end at about 60%
• Labor and fuel costs: CDL driver shortages, higher wages, fuel volatility and rising equipment costs
• Disposal costs: Reduced landfill capacity and higher tipping fees due to longer haul distances and stricter environmental standards
• Regulatory requirements: Increased recycling and environmental compliance standards requiring additional equipment and monitoring

The updated rate reflects the true cost of delivering reliable sanitation services in 2026.

What are the main cost drivers in the new rate?
Costs are distributed across several categories:

• Fuel and transportation (30% to 40%)
• Labor (20% to 35%)
• Disposal and landfill fees (10% to 25%)
• Equipment and capital (10% to 20%)
• Regulatory compliance (5% to 15%)

Solid waste services are impacted more than general inflation due to their reliance on both heavy equipment and labor.

What are the new monthly rates?

Effective July 1, the new monthly rates for residential solid waste services are:

• Standard weekly curbside service: $51.85 per month
• Weekly backdoor collection service: $74.70 per month

These rates include weekly trash, recycling and yard waste collection within established service limits, plus bulk item pickup and access to City-issued carts.

Recycling and yard waste collection are provided at the curb for all customers.

Residents will first see the updated rates reflected on their August utility bill for services provided in July.

Service Levels: What Stays the Same and What Changes

What stays the same?
Germantown will continue to offer premium services, including:

• High-volume weekly yard waste collection (up to 10 cubic yards)
• Weekly bulk item pickup (up to five cubic yards)
• Optional backdoor collection service 

What is changing?
Updates are designed to improve consistency, safety and long-term sustainability:

• Cart-only collection: All trash and recycling must be inside City-issued carts
• Standard service package: Includes one 96-gallon trash cart, one 64-gallon recycling cart, weekly yard waste and bulk pickup within set limits
• Recycling cart options: Residents may use either a 64-gallon or 96-gallon City-issued recycling cart. Existing 96-gallon recycling carts may continue to be used and do not require exchange. Cart size does not affect service levels
• Additional carts available: Up to two trash and two recycling carts per household; $7.75/month per extra cart plus a one-time $75 delivery fee. Monthly fees apply per additional recycling cart regardless of cart size
• Optional yard waste cart: One per household with a one-time $75 delivery fee; no monthly fee
• Construction debris: Not included in residential service
• Backdoor service: Includes one designated 64-gallon City-issued cart

Rate Comparison

How does Germantown compare to other cities?
The proposed rate of $51.85 per month remains competitive:

• National average for similar service: $40 to $70 per month
• Germantown remains mid-range while offering higher-frequency and higher-volume service
• Many cities have implemented incremental increases over time; Germantown’s adjustment reflects a longer period of frozen rates
• Regional contract increases of 30% to 60% are common in current market conditions

The rate aligns with national trends while maintaining a higher level of service.

Procurement Process

Why did the City receive only one proposal?
The City understands residents may have questions about why only one proposal was received for the recent solid waste collection Request for Proposals (RFP).

The City conducted a publicly advertised, open solicitation process in accordance with established procurement policies and applicable requirements. Vendors were provided the opportunity to review the RFP, ask questions and submit proposals.

While the City can create a fair and competitive process, it cannot require companies to participate.

Does receiving one proposal mean the process was not competitive?
No. In public procurement, competition is measured by providing qualified vendors the opportunity to compete, not by guaranteeing a specific number of proposals.

A properly conducted procurement process can result in one responsive and responsible proposal. Key considerations include whether the City:

• Publicly advertised the solicitation
• Provided vendors equal access to information
• Applied requirements consistently
• Followed established evaluation procedures
• Reviewed the proposal for responsiveness and responsibility

The City's procurement process was designed to meet these standards.

Why might companies choose not to submit a proposal?
Municipal solid waste collection is a highly specialized industry with a limited number of companies capable of providing large-scale residential service.

Companies may choose not to submit a proposal for many reasons, including:

• Existing contract commitments
• Labor and fuel cost uncertainty
• Disposal and landfill challenges
• Startup and transition costs
• Route density and operational logistics
• Business decisions regarding profitability or service territory

A decision not to participate does not necessarily reflect the fairness of the procurement process.

How did the City determine the proposal was reasonable?
The City evaluated the proposal to ensure it met the requirements of the RFP and reviewed pricing against current market conditions and industry trends.

Staff also considered factors such as labor costs, fuel costs, equipment expenses, disposal fees and comparisons with similar municipal contracts.

Were alternative options considered?
Yes. The City conducted a feasibility study on providing service in-house. It found that:

• Fleet acquisition and maintenance would require significant capital investment
• Facilities and staffing costs would be substantial and ongoing
• Operational risk and long-term cost would exceed the contracted approach

Contracted service provides the most cost-effective way to maintain current service levels.

Why didn't the City reject the proposal and start over?
Receiving a single proposal does not automatically require a solicitation to be rejected.

Before moving forward, the City evaluated whether:

• The proposal met all requirements
• Pricing and service levels were reasonable
• Rebidding would likely result in additional competition
• Delaying the process would create operational or financial risks

Rejecting a responsive and responsible proposal without a valid business reason can result in service delays, increased costs and reduced participation in future procurements.

How is the vendor held accountable?
Multiple safeguards are built into the contract:

• Monthly performance reviews: Payment is only approved after service review
• Liquidated damages: Financial penalties for missed or failed service standards
• Performance and payment bonds: Financial guarantees of contract fulfillment
• Insurance requirements: Protect the City and taxpayers from liability