Correction: An article in Wednesday”s paper titled “Trash talk: Fee increases approved for waste haulers” contained misinformation about when the rates will take effect. The 4-percent increase the supervisors approved Tuesday will be retroactive to July 1, and customers will likely receive their new bills this weekend. The same article incorrectly stated that the supervisors approved a landfill gate fee increase. This fee increase was actually assigned to a taskforce and still needs to be approved by the board.
LAKEPORT — The board of supervisors approved a fee increase for two franchise haulers on Tuesday to help them cope with economic times, a loss of revenue and keep them from bankruptcy.
The board approved a 4-percent-a-year increase, or 100 percent Consumer Price Index increase – depending on which is higher – every year for the remainder of Lake County Waste Solutions” (LCWS) and Southlake Refuse”s contract with Lake County. Board members also approved a gate fee increase.
However, the higher rates won”t take effect until next year.
Both companies have taken a hard hit in recent months, said Lake County Public Services Director Kim Clymire. The closure of Konocti Harbor Resort & Spa cost LCWS about $70,000 in loss of business. The state”s decision to stop giving the two companies subsidies for collection recyclables has cost LCWS an additional $50,000 loss in revenue and $30,000 for Southlake Refuse.
In addition, hard economic times have caused businesses to downsize, not only their staffs, but also the size of their waste bins, further impacting the two franchise haulers” bottom line, said Bruce McCracken, manager of LCWS.
The contractors had initially asked for a 17-percent increase to help them cope with these hurdles and a stagnant number of customers, but after working with Clymire agreed to ask the board for a 4-percent increase instead.
“This 4 percent is not what they wanted,” Clymire said. “It won”t make them whole, it won”t make them profitable, it”ll keep them from bankruptcy.”
The increase would raise LCWS residential rates from its current $11.24 a month to $11.69 a month in 2011. Rates would increase to $12.16 in 2012. By the end of the four-year contract, fees for residential customers would reach $15.38 a month. LCWS” commercial fees would go from the current $150.99 to $157.03 next year, to $206.64 at the end of the company”s contract with the county. The last landfill fee increase was in 1995.
“As much as we”ve had them tighten their belts, I think it”s time we try to help them stay in business,” said supervisor Jeff Smith.
But even with the fee increases, trash and recycling collection in Lake County will remain the cheapest around, McCracken said.
“No one likes to see a rate increase, but we still have the lowest rates in the state,” he said.
Superior Anthony Farrington opposed the rate increase and said he was very disappointed it had passed, and that the matter should have been discussed further before the board reached a decision.
Contact Olga Munoz at onmunoz@gmail.com or call her directly at 263-5636, ext. 37.
