By Liz Shepherd
InkFreeNews

WARSAW — The Kosciusko County Solid Waste Management District approved an annual increase to their recycling contract with Whitley Environmental during a March 15 meeting.

Ashley Smith, Whitley Environmental office manager, was in attendance to answer questions about the proposed increase.

“With initial contracts, they try to bid it lower knowing that the increases would make up for it over the years,” said Recycling Depot Director Tom Ganser. “The increases help them stay competitive in the market.”

Cost increases for fuel, labor and maintenance also affect the increase, said Ganser. The increase is primarily based on a municipal cost index.

Smith said the only recycled commodity Whitley Environmental has seen a financial increase on is cardboard.

“Commodities have went up, but that’s the only one we’re dealing with,” said Smith.

Whitley Environmental requested a 10.82% increase for the contract. Ganser recommended the board accept an 8.48% increase for the contract, roughly 80% of Whitley Environmental’s proposed increase.

“The market’s continued to grow,” said Ganser about increases in volume. “We have to take into consideration that when the contracts were bid, the markets were so low. But these markets are recovering. I encourage Whitley to do exactly what they’re doing with re-negotiating terms.”

“Given all in the report that Ashley furnished to us, they (Whitley Environmental) have cost increases like everybody else but they also have a means of generating money on the other end with the commodities market,” said Board Vice-President Bob Conley. “I think it’s acceptable we go with the 8.48% increase.”

The board’s next meeting is at 11 a.m. Tuesday, April 26.