Waste Management Contract

Pursuant to RSA 149:M-17 Barrington is under contract with Waste Management for the transportation and disposal of municipal solid waste (MSW) and recycling.  At Town meeting in 2018, voters ratified a multi-year contract with Waste Management through December 31, 2026 (2018 Barrington Executed TS Agreement).  This is a great contract for the Town and is saving the Town a significant amount of money compared to other municipalities.  In 2022, the Select Board pursued an extension to the contract and learned that Waste Management would be looking for a significant increase in rates.  The Select Board opted to remain in the existing contract and take steps to prepare for a spike in costs starting in 2027.  It was important to the Select Board that neither property taxes or user fees be increased dramatically in one year.  Instead, they proposed gradual increases which would increase user fees to appropriate levels by the end of the existing contract.  Details of the process and decision-making to get to this point can be found below.

December 1, 2025 (Select Board Meeting)

  1. 2026 Transfer Station and Recycling Center User Fee Increase
    1. The Transfer Station and Recycling Center Review Committee has been reviewing the user fee schedule which was last updated for January 1, 2025.  They are recommending increases in bag fees for the first time since 2024.  The recommendation also includes increases to certain pay-as-you-throw items to reflect current costs.
    2. See attached, Transfer Station User Fee Proposal Red-Lined 20251124
    3. Make a motion to support the recommendation of the Transfer Station and Recycling Center Review Committee and increase certain user fees effective 1/1/2026, as presented.  Passed unanimously.
  2. Waste Disposal Request for Proposals Review – Discussion
    1. At Town meeting in 2018, voters ratified a multi-year contract with Waste Management through December 31, 2026.
    2. See attached, 2018 Barrington Executed TS Agreement
    3. In 2022, the Town and Waste Management reviewed an opportunity to extend the long-term contract through 2031.  Waste Management’s proposal included a price jump in 2023 and in years 2024-2031 there would be an average increase of 4.9% per year per ton and 6.9% per year per haul.
    4. See attached, Waste Management Proposed Contract Extension Through 2031 20230105
    5. A shocking component of this proposal at the time was the proposed increase in hauling costs.  At that time, we were paying $135 per haul.  The hauling was proposed to increase to $255 in 2023, increase to $400 by 2027, and top out at $500 in 2031.  These increases would have resulted in a 270% increase in costs over eight years.  At their January 10, 2023 meeting, the Select Board opted to remain in the existing contract and establish a Transfer Station Revolving Fund to help prepare for the cost increases following the expiration of the existing contract. 
    6. The revolving fund, in conjunction with incremental fee increases, has positioned Barrington well for the expiration of our existing Waste Management contract.
    7. In order to review current pricing and alternative options for waste disposal (such as curbside pickup), the Public Works Department prepared a solid waste request for proposals.
    8. Additionally, as a member of the Lamprey Regional Cooperative, we have access to competitively negotiated tipping fees at the Waste Management landfill in Rochester.  This option allows to focus on hauling services. 
    9. At their October 6, 2025 meeting, the Select Board authorized advertising a comprehensive request for proposals for waste disposal.
    10. See attached, Barrington_RFP_Solid_Waste_Recycling
    11. Proposals were due on November 19, 2025.  The Town received one proposal from Waste Management and they only submitted a proposal for hauling services.
    12. See attached, WM_Sold_Waste_and_Recycling_Services_RFP_2025.11.19
    13. Much to our surprise, the 2027 hauling rate proposed is $240.  This is 40% less than the 2027 rate proposed in the 2023 contract extension.  The proposal also includes a 5% annual rate increase and a fuel surcharge (among other terms).  The Transfer Station and Recycling Center Review Committee has begun to review the proposal and formulate questions for Waste Management.
    14. Since Waste Management is the only proposal for a long-term contract, the Town does not need to take any action until later in 2026.  We will take our time discussing terms with Waste Management and reviewing in-house hauling as an alternative.  The Select Board and community should expect an update in the spring of 2026.

October 6, 2025 (Select Board Meeting)

  1. Municipal Solid Waste and Recycling Request for Proposals – Vote

    1. The Town’s contract with Waste Management expires on December 31, 2026.  In 2023, the Town explored extending the Waste Management contract, but the proposed cost increases for 2024, 2025, and 2026 were determined to be too high.  Instead of waiting for the contract to end and costs to increase significantly the Town proposed a revolving fund and fee increases to start preparing for the December 31, 2026 contract expiration.  This approach will have allowed the Town to set aside approximately $300,000 by the end of 2026.  This funding will provide the Town option in how waste is collected and disposed of.
    2. The Town’s Transfer Station and Recycling Center Review Committee has been instrumental in preparing the Town for the future operations of the Transfer Station.  Part of their efforts have included surveys and resident engagement efforts to understand what residents expect for services.  Over the last couple of years, this group has been considering possibilities following the Waste Management contract expiration.  They have felt that going through a comprehensive request for proposals process with various options for waste collection and delivery would provide the Town with valuable information to make data-driven decisions about the future operations of the Barrington Transfer Station and Recycling Center.
    3. As an example, some residents have requested consideration for curbside trash collection services in Barrington.  Curbside collection has always been deemed too costly to consider.  It was recommended that when the Town advertised for services in advance of the Waste Management contract expiration, that costs for curbside collection be requested.
    4. Separately, it would be worthwhile to explore alternative options for waste delivery.  Currently, Barrington contracts with Waste Management to haul and collect waste and recycling.  It may be more affordable to pay a third-party to haul or even to haul with our own truck.  These are all options we have included in the request for proposals.
    5. The timing of this advertisement is important.  Although we are 14 months from the expiration of the current agreement, March 2026 is the last Town Meeting before the end of the contract.  If the Town wants to consider a multi-year agreement, that question would have to be put in front of voters in Marach of 2026.
    6. The Transfer Station Administrator and Public Works Director have prepared a request for proposals which asks interested parties to submit proposals for one or more of the five options listed.
    7. See attached, Barrington_RFP_Solid_Waste_Recycling
    8. The Select Board is asked to consider authorizing the advertisement of this request for proposals.  Proposals would be due by November 19, 2025.  This would allow the Transfer Station and Recycling Center Review Committee to review the proposals and make a recommendation for the December 1, 2025 Select Board meeting. 

Make a motion to authorize the advertisement of the Request for Proposals for waste and recycling in Barrington to explore options following the upcoming expiration of the Waste Management agreement.  Passed unanimously.

December 2, 2024 (Select Board Meeting)

  1. 2025 Transfer Station and Recycling Center User Fee Increase
    1. See attached, TSRCRC 2025 User Fee Increase Recommendation Letter 20241127
    2. See attached, Transfer Station User Fee Draft 2025

Make a motion to support the recommendation of the Transfer Station and Recycling Center Review Committee and increase certain user fees effective 1/2/2025, as presented. Passed unanimously. 

March 12, 2024 (Town Meeting)

Residents approved Article 40, creating a Transfer Station and Recycling Center Revolving Fund with all revenues exceeding $225,000 being deposited in the fund.  

January 8, 2024 (Select Board Meeting)

  1. Transfer Station Fees and Schedule Changes
    1. See attached, TSRCRC Recommendations Memo - Fees and Schedule 20231215
    2. See attached, Transfer Station User Fee Draft for 2024
    3. The 2024 warrant includes two Transfer Station and Recycling Center initiatives.  First, the operating budget includes funding to keep the facility open for the same hours all year (expanding the Thursday hours beyond just the summer).  Second, the Transfer Station and Recycling Center Revolving Fund which relies on gradual fee increases to prepare for the 2027 waste disposal contract.
    4. The Transfer Station and Recycling Center Review Committee made the following recommendations:
      1. Additional Operating Hours: 8am-12noon on Thursdays.
      2. Fees: See attached, effective January 9, 2024.

Make a motion to support the recommendations of the Transfer Station and Recycling Center and set year-round Thursday hours from 8am to noon (contingent on budget approval) and approve the proposed user fee changes effective January 9, 2024.  Passed unanimously.  

November 27, 2023 (Select Board Meeting)

The Select Board supported the recommendation from the joint Advisory Budget Committee and Transfer Station and Recycling Center Review Committee:

  1. The groups recommended proceeding with a warrant article to establish a Revolving Fund for the Transfer Station which would allow the Town to prepare for a dramatic increase in waste disposal costs at the end of the contract with Waste Management (12/31/2026).  The proposal would be to retain $225,000 annually as revenue in the general fund to offset taxes (and fund approximately 72% of the Transfer Station).  Further, the proposal would target an approximately 20% annual increase in Transfer Station user fees and that additional revenue would be deposited in the revolving fund.  A 20% increase in 2024 is expected to generate $45,000 in additional revenue.  An additional 20% increase in 2025 would add $100,000 and an additional 20% in 2026 would add $165,000.  The result would be approximately $310,000 in time for a new waste disposal contract (where we anticipate a doubling of disposal costs).  The group was in favor of an approach which incrementally increased user fees to avoid a doubling of fees in one year.  Additionally, the group felt that the balance in the revolving fund could be used to extend the incremental user fee increases and/or pursue other options such as performing transportation using Town equipment/personnel.

November 20, 2023 (Joint Advisory Budget Committee and Transfer Station and Recycling Center Review Committee)

The Advisory Budget Committee and Transfer Station and Recycling Center Review Committee came together in a joint meeting to discuss how the Town should proceed with the anticipated increase in waste disposal costs.  The group discussed a variety of options and ultimately decided that establishing a revolving fund along with gradually increasing the user fees was the best approach.  The groups unanimously recommended that the Select Board proceed in that way.  This outcome is especially important because the two groups have very different goals and objectives and agree completely with the proposed path forward.

August 14, 2023 (Select Board Meeting)

  1. In 2022 and early 2023, the Select Board evaluated the current Waste Management contract which is set to expire at the end of 2026.  In recognition of the State’s municipal solid waste crisis, the Select Board sought an extension of the existing Waste Management contract.  Although the Town anticipated cost increases with an extension, the proposal was much higher than expected.  In order to secure a contract through 2031, Waste Management proposed a 12% increase in 2023, a 30% increase in 2024, a 33% increase in 2025 and a 39% increase in 2026 over the Town’s existing contract.  The contract price continued to escalate through 2031.  The Select Board respectfully declined Waste Management’s non-negotiable offer at the January 10, 2023 meeting.
  2. One thing, we talk about regularly as a tenant of good government is avoiding large peaks or valleys in appropriations (or revenue).  It is fair to assume that Barrington’s solid waste rates could double in 2027 after our existing (and well negotiated) contract expires.  This would have a strong negative impact on the Town’s budget, revenue, and residents as a significant spike in cost. 
  3. In order to mitigate the anticipated cost increase and maintain a stable tax rate, I would propose asking voters to establish a revolving fund per RSA 31:95-c.  Trash bag prices were increased by 25% in 2022 which has resulted in increased revenue collection.  A revolving fund would allow the Town to set aside a portion of the additional revenue as a savings account to ‘buy-down’ the anticipated cost increase in 2027.
  4. As an example, if the current contract cost is $250,000 per year and we expect the cost in 2027 to be $500,000 per year, we could save $75,00 per year in 2024, 2025, and 2026 using a revolving fund.  We could then strategically use those savings so the cost in 2027 could be $325,000, the cost in 2028 could be $425,000, and the cost in 2029 could be $500,000.  Additionally, the Town could continue to gradually increase Transfer Station user fees to avoid a one-time doubling of fees in 2027.
  5. If the Select Board supports this idea in concept, a full proposal will be developed with a target funding schedule and utilization plan.  Once the Select Board reviews that level of detail, a determination can be made whether or not to present the Transfer Station Revolving Fund to voters in March of 2024. 

April 13, 2023 (Select Board Meeting)

  1. The Town maintains a membership with the Lamprey Regional Cooperative.  One service provided by the organization is competitively negotiated waste disposal rate with Waste Management.  Although the Town was able to secure more competitive rates, the Lamprey Regional Cooperative rates would be available to the Town in the future.  Recently, the cooperative negotiated an extension through 2033.
  2. See attached, Amendment Two Lamprey Cov Ltr 2023-03-22
  3. See attached, 2023 WM proposed fee change Amend 2
  4. See attached, Amendment Two Lamprey Regional Fully Executed 2023

January 23, 2023 (Select Board Meeting)

  1. Transfer Station Trash Bag Price Increase
    1. The Transfer Station and Recycling Center Review Committee has been evaluating the rising costs of municipal solid waste (transportation and disposal) and the Town’s pay-as-you-throw model.  The price for residents to purchase trash bags has not changed since 1998!
    2. See attached, Committee recommendation for Selectboard Trash Bag Price increase
    3. See attached, Transfer Station and Recycling Center Rules and Regulations Draft 2023
    4. See attached, Transfer Station User Fee Final Draft Jan 2023

Make a motion to support the recommendation of the Transfer Station and Recycling Center Review Committee and increase large bags from $14 to $17 and small bags from $9 to $12 effective January 24, 2023.  Passed unanimously.

January 10, 2023 (Select Board Meeting)

At the January 10, 2023 meeting, the Select Board reviewed the contract extension proposal.

A quick analysis was performed based on 2022 data for hauls and tonnage.  Each value represents the estimated annual cost.  This analysis assumes no change in utilization and ignores commodity pricing and the fuel surcharge.

 

Current Contract

Proposed Contract

Difference

2023

$220,319

$247,763 (6/1/2023)

$27,444

2024

$230,878

$298,161

$67,283

2025

$240,250

$321,240

$80,990

2026

$246,993

$344,008

$97,015

 

 

Subtotal

$272,732

2027

 

$365,534

 

2028

 

$386,149

 

2029

 

$407,198

 

2030

 

$429,392

 

2031

 

$450,885

 

If Barrington adopted the proposed contract terms, it is estimated that it would cost a total of $272,732 more in years 2023-2026 than the current contract terms.  Further, the proposed 2031 pricing is estimated to be $203,892 more than the 2026 rates of the existing contract. 

One thing, we talk about regularly as a tenant of good government is avoiding large peaks or valleys in appropriations (or revenue).  This proposed contract extension could allow the anticipated cost increase to be gradually phased in versus experiencing a doubling of the rates in 2026.  That said, the Town could also explore other tools to help normalize a price hike.  One such option would be a revolving fund or special revenue fund.  This would allow user fees to accumulate year over year and funds could be saved in anticipation of a large increase. 

An additional factor to consider is the current solid waste industry and capacity in New Hampshire.  Due to the proximity of Waste Management in Rochester, Barrington is unlikely to have a less expensive option based on hauling fees alone.  The ability to secure a contract through the end of 2031 is appealing in order to manage the uncertainty of the solid waste industry.

The Transfer Station and Recycling Center Review Committee will meet on Monday, January 9, 2023 to review the Waste Management proposal.  Their comments will be available for review at the January 10, 2023 meeting.

Ultimately, the Select Board voted to reject the proposal from Waste Management.  

January 5, 2023

After multiple meetings with staff, on January 5, 2022, Waste Management has offered terms of a contract extension through the end of 2031.  Their proposal includes a price jump in 2023 and in years 2024-2031 there would be an average increase of 4.9% per year per ton and 6.9% per year per haul.  The current contract (through 2026) maintains 2% increases per year in tonnage and hauling.  The proposed contract also includes a fuel surcharge/rebate program with a $4/gallon baseline.  The proposed 2023 start date would be June 1, 2023.  It is apparent that if we remain in the existing contract, we should expect a dramatic increase in a new contract. 

Waste Management Proposed Contract Extension Through 2031 20230105

Waste Management Proposed Contract Extension Fuel Surcharge 20230105

May 23, 2022

At the May 23, 2022 meeting, the Select Board voted to not accept the cost increase until an updated draft proposal is created between Waste Management and Barrington to include a contract extension.

May 9, 2022

At the May 9, 2022 meeting, the Select Board met with Peter Lachapelle, Waste Management’s Public Sector Representative to further discuss the Waste Management request and the impacts to the solid waste industry.

April 13, 2022

On April 13, 2022, the Town received the following letter and request for a 3% increase in hauling and disposal (above and beyond the contract) from Waste Management.

Inflationary Cost Letter

Additionally, Waste Management provided the following review of industry impacts.

Waste Management Industry Impacts - April 2022