Garbage Rates Could Rise By 50 Percent

WAITSBURG - The company that picks up garbage for households in Waitsburg has proposed a new exclusive 10-year agreement with the city that raises the net waste collection portion of families' utility bill by 50 percent.

The net rate for garbage pickup for a 64-gallon or 96-gallon can (the size most households have) would rise to $15.76 from the current $10.55, an increase of $5.21 or 49.3 percent. The fees are part of the water, sewer and garbage services residents pay in one bill to the city every month. The city, which has to pay excise tax on the service, also adds its own administrative fees to this "net" rate, which means the current garbage collection rate of $13.06 per 64-gallon or 96-gallon cart will go up to $17.62.

The new draft agreement was presented last month to members of the Waitsburg city council, who had plenty of questions for the company and spent more than an hour discussing the proposal which would go into effect this fall.

City staff is proposing some changes to the company's draft, including ways that encourage residents to get an extra cart for regular excess garbage instead of the current system that allows them to leave extras by the curb.

The draft contract will come for discussion again at the council's regular meeting on Wednesday, June 22.

Officials from Basin Disposal Inc. were quick to point out that the rates are still well below those they charge in other local markets and are necessary to help keep their operations viable at a time of rising fuel and other costs.

"It's a big jump and nobody's happy about that," said Darrick Dietrich, Basin Disposal president. "But it's still a darn good rate."

Dietrich said the company's full overhead costs were not accounted for eight years ago and BDI has run its Waitsburg operation at a loss.

In addition, when times were good for the city financially, previous city councils decided to absorb past rate increases, which it's no longer in a position to do, City Clerk Randy Hinchliffe said.

"Over the years, the model was priced so low, that now rates aren't meeting expenses," he said, noting that the same happened to sewer rates several years ago after the city built a new waste water treatment plant.

Dietrich said wages, disposal fees and fuel costs have all gone up significantly. Even with the proposed rate adjustment, which does not require approval from the state's Utilities Commission as it is within city limits, Basin's collection contract with Waitsburg would still fall short of breaking even by $7,200 after two years, he said.

The proposed Waitsburg contract has rates that are 33 percent less than those in Walla Walla County, 17 percent less than those in the city of Walla Walla and 12 percent less than those in Franklin County - all markets Basin serves as well.

Annual increases in the rate structure would be at 90 percent of the consumer price index, a standard government measure of inflation.

Another proposed change is a new fee for extra items for which there's currently no charge. Those "extras" include bags, boxes and bundles left next to the regular bin. Residential customers will be charged $4.50 for those items before city administrative fees are added, Dietrich said.

Net commercial rates will rise to $ 19.76 per month for a 64-gallon or 96-gallon cart and $90.26 for a 300-gallon container.

The city and council hope to get input from residents on the draft contract and fee schedules. A vote is planned before the current contract runs out in September, possibly at the August meeting, Hinchliffe said.