The municipality may contract with an independent contractor to provide for the collection and disposal of nonhazardous municipal solid waste. Such contractor shall be selected by competitive bidding and the length of the term of any such contract shall be determined by the Mayor and Council, not to exceed five years. Any such contractor shall enter into a written agreement with the municipality, which agreement shall provide for the rates to be charged by the contractor and such other terms and conditions as may be required by the Mayor and Council.
(`77 Code, § 3-905)