HomeMy WebLinkAbout08-25-08 City trims rate hike, collects trash at half private rates
Office of the Mayor
NEWS RELEASE
August 25, 2008
4:45 p.m.
City trims rate hike, collects trash at half private rates
Contact:
Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564
or Gary Gilot, Director of Public Works, 235-9251
With Mayor Stephen J. Luecke’s direction and based on Council input, a proposed rate
increase for trash collection service is lower than originally considered and limited to a
one-time increase, rather than three increases in three consecutive years.
The proposed rate, being considered today by the South Bend Common Council, would
keep South Bend’s standard rates lower than proposed new rates in Mishawaka and as
little as half the cost of private services to residents in unincorporated areas of St. Joseph
County.
The Council will consider raising standard residential rates to $10.56 per month,
compared with the current rate of $8.80 per month, which has been in place since 2005.
Senior citizens, who receive a 40 percent discount compared with standard rates, would
see rates rise from $5.50 per month to $6.34 per month. Commercial customers and
apartment facilities also would see fees rise by 20 percent.
“Trash collection represents a core city service, and it’s important that South Bend
continue to be a clean city,” Luecke said. “I’m pleased with the ingenuity of staff and
their commitment to providing value for our residents and customers by finding ways to
reduce service costs through increased efficiency in operations and judicious use of fees
from rate payers and users.”
While South Bend’s Bureau of Solid Waste has improved services, added 96 gallon
containers for each customer and reduced staff by more than one-third since 2002, costs
since 2004 have increased faster than revenue.
“Rising fuel costs, an aging fleet and increased landfill tipping fees have cut into our
reserves. Picking up trash is a business, and business costs have increased,” said Gary
Gilot, director of public works for the City of South Bend. “Without additional revenue,
the City would need to reduce special pickups and change residential trash collection
from weekly to every other week or pursue other similar Solid Waste service cuts if no
fee adjustment is approved.”
When rate increases were first discussed with Council members last month, the City
considered a 30 percent rate increase phased in over three years. Still, even that original
amount was less than proposed new rates in neighboring Mishawaka, which is
considering a standard monthly rate of $12.95 and a senior rate of $10.57 monthly plus a
$3 monthly container fee and fuel surcharge clause.
Monthly charges for private vendors serving unincorporated parts of St. Joseph County
range from $15 to $21.10 monthly, not including additional surcharges.
Each week, the City of South Bend collects solid waste for nearly 32,000 customers,
transporting the waste to two area landfills and a city disposal, while composting yard
waste and participating in recycling through the Solid Waste Management District. City
crews collect downtown trash daily, while, for residents, they also collect yard waste
weekly (in season) and can be scheduled for large item pickup each week.
Yet with increasing gas prices and landfill tipping fees, plus a need to replace city trucks
and containers have had negative impacts. More than half of the fleet is 13 years old.
Could customers save money if the City outsourced trash collection? According to an
analysis of the recent Mishawaka Solid Waste private contracting bid and accounting for
differences in covered services, privatizing South Bend’s trash collection could cost each
resident nearly $3 more per month than presently and nearly $4 more per month for
seniors than the proposed rate increase.
That finding emerged from an analysis of the low bidder for private trash collection
service in the City of Mishawaka. The analysis looked at costs for comparable service – a
Solid Waste container is provided by South Bend without additional charge (containers in
the Mishawaka private contract are rented for a $3 monthly charge). Containers also are
required for recycling services (which, in South Bend, are provided by the Solid Waste
Management District). The only other difference in services was that in South Bend yard
waste is collected separately and composted, where it can be reused by residents and
landscape nurseries. In Mishawaka, yard waste would be commingled with trash and
disposed in a landfill.
If adopted by the Council, the new rates would take effect Sept. 1.
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