SOUTH WHITEHALL TWP. — It will cost South Whitehall Township at least 50% more next year to have its residential garbage removed, according to proposals from companies bidding for a contract of up to five years.
- Trash-hauling companies seeking a contract to remove South Whitehall Township's refuse for up to five years submitted bids that would raise the cost at least 50%
- Representatives for J.P Mascaro & Sons and Waste Management attributed the hike to post-COVID-19 inflation and labor costs
- Township commissioners expect to award a contract that their Sept. 6 meeting
J.P. Mascaro & Sons quoted the township a cost of $21,634,536 for five years and Waste Management a cost of $22,393,838.
Whitetail Disposal made a bid of $30,331,143.88 — up 121.4%.
Township commissioners voted to table a decision on awarding a contract until its next meeting on Sept. 6. The township is looking for a three- to five-year contract.
"It means a lot to our employees to have the opportunity to earn a contract like this."J.P. Mascaro III of J.P. Mascaro & Sons
Commissioner David M. Kennedy was the lone vote against tabling the matter; he wanted to award Mascaro the full five-year contract.
Representatives from Mascaro and Waste Management attributed the increase to post-COVID-19-pandemic inflation and rising costs of labor.
No representative from Whitetail was at the meeting.
The pitches made by Mascaro and Waste Management at the meeting took on all the characteristics of a competition or debate.
A lot is at stake
J.P. Mascaro III started his career driving garbage trucks, went to law school, became an assistant district attorney, then came back to the garbage trucks, but in a different capacity.
He's now director of facility permitting of his family's garbage-removal company, J.P. Mascaro & Sons.
"We have a thousand employees whose livelihoods depend on how well we do our jobs in terms of getting business so that they can go out and service, and take pride in servicing."J.P. Mascaro III, of J.P Mascaro & Sons trash haulers
Four of his company's men, all wearing business attire, sat in the front row of Monday's meeting and awaited their turn to make a pitch that could generate the company more than $20 million in revenue over the next five years.
Mascaro said a lot is at stake for his company.
"You know, we have a thousand employees whose livelihoods depend on how well we do our jobs in terms of getting business so that they can go out and service, and take pride in servicing," Mascaro said.
"So it means a lot to our employees to have the opportunity to earn a contract like this."
Mascaro's main selling points in his presentation to the board were that it's a family-owned business, has good customer service and its growing expenses justify the higher cost.
Competition takes note
As Mascaro and his business associates worked the floor for the first part of the meeting, two men sat in a row further back with their arms crossed, occasionally whispering and listening to sales figures and percentages.
They were from the local branch of Waste Management, or W.M., which currently holds South Whitehall's trash-hauling contract.
It's a multinational company, but has feet on the ground in the Lehigh Valley, which it emphasized when it was its turn to take the podium.
Ron Carlson, representing Waste Management, said he agreed with Mascaro's interpretation of the market, and added a few points.
"That's what the pricing is now, with your communities," Carlson said. "It's just evolved into that in the transportation industry itself has taken a huge blow.
"Equipment is outrageous nowadays. And if you get it on a timely basis, you're lucky."
He said his company ordered a truck two years ago and still hasn't gotten it.
In the audience, Mascaro nodded.
Price point and community comment
The price structure followed the same guidelines between companies.
The companies pitched a price for every year until 2028, and the township was given the option to buy their services for three or five years.
Mascaro and W.M. averaged about $4.5 million a year, and Whitetail Disposal $5 million to $6.5 million a year.
During the public comment part of the meeting, resident Cindy Smith expressed disappointment with WM's service.
"We've had major problems with Waste Management," she said. "I have one of their recycling bins out front for over a week now, calling, emailing, nothing. So in my opinion, they should not even be considered."
The two representatives from Waste Management in the room took note of her name so they could follow up.
Later, Smith said her experience with WM has been "nothing short of a nightmare" and said she would be willing to pay a bit more for better customer service.
"I'd pay a little extra for someone that I don't have to email since 2022," she said.
Pitch war
As time was running out in the meeting, both Waste Management and Mascaro were given a chance to answer questions from the board.
It played out like a debate. Members of the board asked questions, seeking to find out which company was better-suited to take on the giant contract and serve the people of South Whitehall.
Representatives from both companies took turns approaching the podium and answering. On two occasions, J.P. Mascaro shot a look over at an associate to come up and explain things in which he wasn't as well-versed.
Township solicitor Joseph Zator gently probed the companies on specifics. He asked about senior's discounts, recycling programs and specific functions relating to customer service.
He also asked if there was a way for residents to reduce their garbage output that could potentially reduce prices in the future.
The answer to these questions was all essentially "no," except for recycling programs.
Mascaro highlighted his company's advanced recycling methods, whereas Waste Management admitted that its methods were not there yet, but would be in the future.
Between turns on the podium, associates from both companies whispered to each other, and exchanged looks that subtly communicated agreement or disagreement.
Toward the end of the session, the whispers got so loud at points that members of the board paused so that they wouldn't drown out the comments made in the microphone, which was hooked up to a speaker.
Cliffhanger ending
The men from the two companies thanked the board for their time, and stepped outside, where competing companies shook hands, reminiscent of what's customarily done at the end of a hockey game.
"I mean, we beat each other up in there and stuff like this, but we are competitors and we are friends," Carlson said. He said he's been in the industry for about 40 years.
"That's why I have so many gray hairs," he said.
