Otter Tail County Rejects Lowest Bids for New Recycling Routes, Opts for Local Haulers

Otter Tail County Commissioners have awarded curbside recycling contracts for the cities of New York Mills, Ottertail, and Parkers Prairie, intentionally bypassing the lowest bidder in favor of local providers. The 18-month contracts, set to begin in January 2027, were granted to Five Star Disposal and Alex Rubbish despite higher costs compared to the proposal submitted by Waste Management. This decision underscores a regional preference for local economic support and existing service relationships over strict cost-minimization in waste management procurement.

Assistant Solid Waste Director Scott Bjerke reported that the county received five bids for the recycling collection contracts spanning from January 2027 to June 2028. While Waste Management submitted the lowest bids for all three cities—offering $44,402 for New York Mills, $50,944 for Ottertail, and $29,816 for Parkers Prairie—the commissioners ultimately rejected these offers. Instead, Five Star Disposal was selected for New York Mills and Ottertail, and Alex Rubbish was chosen for Parkers Prairie. The decision followed committee-level discussions and recommendations from local city administrators and council members who expressed a preference for local service providers.

The financial discrepancy between the winning bids and the lowest offer varied by route. Five Star Disposal, based in New York Mills, secured the contract for its hometown and Ottertail with a bid approximately $2,250 higher than Waste Management’s. In Parkers Prairie, the county bypassed both the lowest bidder and the second-lowest bidder, Long Prairie Sanitation, to award the contract to Alexandria-based Alex Rubbish. Alex Rubbish’s bid was nearly $6,000 more than Waste Management’s, yet commissioners favored the company because it already provides refuse removal services within that community.

Commissioners Dan Bucholz and Bob Lahman emphasized the importance of keeping business local, noting that Waste Management is headquartered out of state. Commissioner Wayne Johnson clarified that the county is not legally mandated to accept the lowest bid and possesses the authority to hire the provider deemed to be in the best interest of residents. This move reflects a strategic choice to leverage existing local infrastructure and maintain community-based service providers, even when faced with higher operational costs for the upcoming 18-month service period.