Best Way Disposal dumped after 30 years serving Portage

A local trash hauler that has served Portage for 30 years will soon have to cease operations in the city after local officials granted an exclusive contract to an out-of-state corporation.

The city of Portage awarded a five-year, $29 million contract to Waste Management, based in Houston, Texas. The contract, which takes effect March 1, prevents residents from choosing which company takes their trash. Four companies — Waste Management, GFL, Best Way Disposal, and Republic — bid the contract.

“That means in March, they’re going to take our 71% [market share] and give it to Waste Management. And we won’t be able to haul for our customers anymore,” Jessica Routley, general counsel for Best Way Disposal, told Michigan Capitol Confidential in a phone interview.

Michigan communities handle trash systems in various ways. Some directly employ people who run their waste-hauling trucks. In others, residents pick what trash company they want.

But in the Kalamazoo County city of Portage, the government will force residents to use one provider — whether they want it or not, according to Chris Phillips, manager at Best Way Disposal of Michigan.

The city of Portage collects tax dollars for recycling through Best Way Disposal, a contract the company has held for nine years.

Waste Management offered the strongest bid and the lowest monthly waste removal rate, according to a webpage on the city of Portage website. Waste Management will charge $14.04 for residential customer garbage collection, $10.50 for yard waste and $4.69 for recycling services for the first year, the city says, adding that the monopoly contract will reduce wear on streets and maintenance costs.

“The city is not aiming to eliminate competition but to streamline and improve waste services through a single-hauler system,” according to the city website. “All waste haulers were offered the opportunity to submit their best price. This approach allows for better oversight, consistent service quality, and cost savings for residents by negotiating bulk contracts.”

But the new contract kills market competition, Phillips said.

“The one thing you lose in a franchise is competition,” Phillips said. “Right now, if Best Way isn’t living up to our name, then people are free to go to another company that can service their needs better than we can. In a franchise, if you’re unhappy with what you’re getting, you have no recourse. You can either have service or not have service.”

The city didn’t get proper feedback before making the change, Phillips said.

A city of Portage questionnaire polled 1,700 residents in 2020, finding that 54% of people did not want a single hauler. When asked whether they were satisfied with the quality of waste-removal services, 88% said yes.

“We weren’t really given a choice. Either you put in a bid and try to defend your 71% or you walk away and lose it all,” Phillips said. “30 years of investment in acquiring those customers, the equipment to service the community of Portage, is gonna go away.”