SIOUX CITY, Iowa (KCAU) — Sioux City’s contract for solid waste collection and recycling is set to expire June 30th.

On Monday, Sioux City City Council members deferred for one week any action on a new deal with Gill Hauling. City staff brought a recommendation for a new 10-year contract to council.

It provides for annual rate hikes of anywhere between two and five percent. In return, Shawn McDowell, of Gill Hauling told the council the company plans to purchase six new side-loading trucks and new curbside carts. The upgrades carry a combined $7.4 million price tag according to McDowell.

Additionally, Gill Hauling is looking to limit recycling pick up to every other week.

“It is, believe it or not, a fair contract. If you look around the region and see what they’re paying, it’s a fair contract. I don’t like every 2-week recycling and the reason I don’t is I’m a big advocate for recycling. I think we’re filling landfills we shouldn’t be filling, and I think when you discourage the pick-up and you go two weeks, did I put it out last week or didn’t I, that’s going to discourage recycling and I think we got to do everything we can to encourage it.,” said Mayor Bob Scott.

The contract will be addressed again at the next meeting on February 13. Council could decide to end the agreement and put garbage collection back out for bid.