Homer Glen Approves Renewal Contract With Homewood Disposal

HOMER GLEN, IL — At its Wednesday meeting, the Homer Glen Village board approved a 5-year contract extension with Nu-Way/Homewood Disposal Service and waived the competitive bidding requirements.

According to board documents, the village entered its existing 5-year agreement with Homewood Disposal Service in July 2016. The contract will expire on June 30, after which the contract will be extended.

Trustee Carlo Caprio, who had asked that the discussion be tabled at the previous meeting, so he could look through the information, said he was fully supportive of the contracts and added that the benefits are unbelievable.

"Over the last several years, they've been a stellar partner of ours."

With the new contract, an e-waste curbside pick-up program will be offered at 50 cents per month, board documents state. The contract extension also includes annual rate increases of 2.5 percent for years 1, 2 and 3, and a 3 percent increase for years 4 and 5, board documents state. The current contract had 2 percent annual rate increases.

Right now, a single-family home pays $25.82 per month for services. From July 2021 to June 2022, they will pay $26.47 per month; from July 2022 to June 2023, fees will be $27.13 per month; from July 2023 to June 2024, fees will be $27.81 per month; from July 2024 to June 2025, fees will be $28.64 per month; and from July 2025 to June 2026, fees will be $29.50 per month.

Residents will see a total increase of $3.68 over five years.

The contract also offers a senior discount of $4 a month, and senior citizen rates will be frozen for the first year of the contract, board documents state. The Village will receive free services for its own garbage pick-up, special events and Homer Fest. The contract also includes revenue sharing with the Village. Homewood Disposal will share back 2 percent of revenues for years 1, 2 and 3 of the contract; and 2.25 percent of revenues for years 4 and 5, board documents state.

"This is a normal and accepted business term, and is considered a franchise fee, where we allow or authorize one company to offer its services exclusively to the entire community, which is allowed by state law," Mayor George Yukich said, adding that the village has similar agreements with Comcast and ComEd.

Board documents state that the Village received $72,135.87 in revenue from this contract in 2019. In 2021, with the extension of the contract, revenues will increase to $94,627.

"Some critics have unfairly and inaccurately called this a kickback, implying that we use these funds to cheat our residents," Yukich said. "The truth is these fees paid by Homewood Disposal to the village are for the community."

The village uses the funds to pay for other services, like the public safety contract with the Will County Sheriff's Office and environmental sustainability projects and programs, Yukich said.

Trustee Ruben Pazmino said Homewood does a wonderful job, but questioned why the Village would waive the competitive bid process.

"It's not about the company itself, I think it's about our process here internally," Pazmino said.

The village has extended its contract with Homewood since it first entered it in 2008. Several trustees expressed their support for the renewal and the waiving of the competitive bidding requirement.

"Going out to bid is not always a guarantee that we're going to get anything better, or a lower price," Trustee Keith Gray said.

The board approved the renewal and waiving of the bid process 6-1, with Pazmino as the sole 'no' vote.