"Having this facility is important to the longterm success of our company and helps us to compete with large multi-national companies like Waste Management and Veolia," said David Pellitteri, vice president of finance for Pellitteri Waste Systems.

Pellitteri expects the Kipp Street facility to be fully operational by April and said that the company will hire 15 to 18 new employees by that time.

George Dreckmann, spokesman for the Madison Streets Division, said that Pellitteri's local roots played a large role in winning the contract. Pellitteri has been operating in the Madison area since 1939.

"It was really a tight decision. We've worked successfully with Waste Management for 20 years and there wasn't a lot of difference between the two proposals. Pellitteri is an old family business with deep ties in the Madison area," Dreckmann said. "The only way they can get a chance is if somebody becomes their first customer."

But the city will see financial benefits from the new deal, Dreckmann said.