Greensboro, NC-- Over the past decade, the city of Greensboro has paid some big bucks to have its recycling hauled away.
Over ten years, Greensboro paid out roughly $1.6 million to the recycling company, ReCommunity.
ReCommunity is one of four companies that have offered bids for the city's next recycling contract, but they're the only one who offered a flat-rate bid.
Read the report presented to the city council.
A flat bid means no that matter what happens to costs of recyclables, the city will receive the same amount of money each year of the contract.
"It's a big risk, to bet on a commodity. That's like taking your money, and taking it to Las Vegas and rolling the dice and hoping it comes up your way," says Mayor Robbie Perkins, Greensboro. "The staff's recommendation to us was to take the risk out of the deal as opposed to betting the city's money."
The other options are called floor-rate options. That means no matter what happens to the market, the city is guaranteed a certain amount, but if there is a boom in the economy, the city's profit would grow.
It's an option that makes sense to Councilman Zack Matheny.
"You've got the two different end of the spectrum. You've got the very conservative which makes sense and you've got the very aggressive which in a great economy would, in a great world, could make a lot of sense, literally dollar and cents. There is probably a happy medium there that has a floor that the city would not have as much exposure too in a volatile market but can also reap a significant reward that can be potentially much more lucrative for our city that is on the table that I think is a valid option our council should consider," explained Matheny.
ReCommunity, Waste Management, Sonoco and TFC Recycling all submitted bids. ReCommunity submitted 3 bids but under their bid Mayor Perkins likes, the city would make approximately $880,000 a year.