A proposal from Shakopee's garbage hauler to dramatically upgrade recycling service has ended up with the firm at risk of losing its contract.

The proposal from Lakeville-based Dick's Sanitation to move to single-sort recycling would bring all sorts of side benefits, the city agrees.

But it seems only to have reminded the city that it has let Dick's slide along for ages as its lone hauler without going out to the marketplace to seek better bids.

Cast suddenly into a new world of competition, Dick's is warning that cheaper isn't always better.

"We were one of the proposals that came in with one of the highest rates," David Domack, vice president of sales and marketing, reminded council members last week. "We worked hard with staff and residents to offer quality service and good value."

Dick's proposal late last month would have improved the city's recycling system. Under single sort, where all recyclables are tossed into a single lidded bin, trucks would have come around only every other week.

But the new and oft-requested system threatened to cost the firm an estimated $1.7 million, what with new bins and trucks designed for them. So it sought to extend its contract for another five years, in hopes of assuring enough return on the investment to pay off the cost.

Dick's wound up wading into an unsettled state of affairs in which council members weren't sure they were getting the best possible rates and other haulers were calling steadily offering their services, according to an internal memo from City Administrator...