Garbage pickup rates could go up for the first time in two
years. Most of the proposed rate increase is related to the city’s
costs to provide new solid waste pickup-related services
– including an incentive program that could save customers money
in the long-run.
Garbage pickup rates could go up for the first time in two years.
Most of the proposed rate increase is related to the city’s costs to provide new solid waste pickup-related services – including an incentive program that could save customers money in the long-run.
The rest of the rate hike – which comes out to about $1.80 per month for basic residential service – is due to inflation adjustments permitted in the city’s contract with its garbage service provider.
The City Council will vote on the staff-recommended rate increase at a regularly scheduled meeting Wednesday. If approved, the total monthly rate increase for a single-family residential customer would be about $1.80, from $23.35 to $25.15.
The city’s contract with Recology, formerly known as South Valley Disposal, allows the garbage, recycling and yard waste disposer to raise rates based on annual consumer price index changes, according to Morgan Hill Environmental Programs Administrator Anthony Eulo.
Although this year’s garbage and recycling rate increase is larger than in previous years, the city still offers a good deal, Eulo said.
“It’s still a relatively small amount of money in a normal household,” Eulo said. “It’s still less than going out to lunch (for example). Our rates are still very low, compared to surrounding communities,” which do not offer unlimited garbage and recycling collection as Morgan Hill does.
The proposed new residential rates reflect two years’ worth of CPI increases totaling about 3.7 percent, plus a $.14 “catch-up” charge to make up for revenue lost to Recology in 2009, when it declined to enact a CPI increase. That adjustment will be spread out annually for the duration of the current contract which expires in 2015.
But the biggest share of the rate increase is for a new expense allowing customers to use an incentive program administered by RecycleBank, Eulo said. Through this program, which costs $.96 per month, residential customers can save money on purchases at big-name corporate retailers by recycling more of their garbage.
The savings will be based on the weight of recyclable trash picked up at each curbside stop. The weight will be calculated by Recology, who will provide each account with a RecycleBank credit. RecycleBank turns that credit into savings and discounts for consumers, in the form of coupons or certificates to redeem at a long list of retail stores that partner with the incentive provider – including CVS, Subway, and Rite-Aid.
The council approved the city’s participation in the RecycleBank program about a year ago, but its implementation was delayed. Eulo explained that this delay was another reason that Recology did not request a CPI increase last year.
The city’s garbage contract includes about 9,700 households.
Morgan Hill’s commercial garbage service customers do not have the option of participating in RecycleBank. City staff has proposed a rate increase of .08 percent for commercial customers – adding from $.01 to $2.33 per month, depending on how many containers of trash these customers use.
If approved Wednesday, the rates would go into effect July 1.
