City sanitation rates going up
Fort Smith’s commercial trash charges also will increase
FORT SMITH — Fort Smith residents can expect to see a rate increase for sanitation services over the next two years starting in October.
The Board of Directors during its regular meeting Tuesday approved an ordinance establishing regulations and charges for the sanitary landfill and residential, commercial and industrial sanitation services, as well as related services.
The board also approved a resolution authorizing the mayor to execute an agreement with Birch Recycling LLC for services related to the acceptance and processing of recyclable materials collected by the sanitation department.
Sanitation department Director Kyle Foreman wrote in a memo to City Administrator Carl Geffken that, after increasing the landfill and roll-off rates over the past three years, the time has come to raise the residential and commercial rates as well.
“The last increase the residential division had was in 2007,” Foreman wrote. “The last residential rate change was in July 2013; a decrease of almost 8%. The last increase the commercial division had was also in 2007.”
The ordinance sets the monthly charge for single-family units at $14.59, effective Oct. 1, and at $15.89, effective Jan. 1, 2022, both in addition to sales tax. Foreman wrote that these charges used to be $13.28, with the total monthly increase of $2.61 to ensure that the residential division covers all of its costs.
Foreman’s recommended commercial increase was 10% per yard, effective Oct. 1. He wrote that commercial dumpster pricing is charged on a per-yard basis, although certain per-yard discounts that exist for certain numbers of dumpsters and frequency levels would not change.
The ordinance states that, for a container size of 2 cubic yards, the charge would be increased from $5.05 per cubic yard per pickup to $6.11. For a container size of 4 cubic yards, the rate would go from $4.38 to $5.29; for 6 cubic yards, it go from $3.99 to $4.82; and $3.58 to $4.32 for 8 cubic yards.
Foreman wrote that the sanitation department also recommends switching to biweekly recycle and yardwaste collection, as opposed to weekly, effective Oct. 5.
“This operational change will save the department roughly $150,000 per year in operating costs,” Foreman wrote. “This switch also allows the department to add an 8th trash route, and add a brush collection service for larger trees that are not reasonably able to be bundled weighing less than 50 lbs. This service would be scheduled based with a fee per cubic yard associated with it.”
The brush collection service, as outlined in the ordinance, comes with a $60 flat fee for 0-10 cubic yards; $120 for 11-20 cubic yards; and $180 for more than 20 cubic yards, although this would be limited to the capacity of a single truck. The fees are subject to sales tax.
Foreman wrote that the rate increases and operational changes will make sure that the sanitation department can cover future landfill development obligations, purchase equipment rather than leasing it and continue to provide “great customer service” and grow services as the city grows.
“Without the operational change to bi-weekly recycling and yard waste collection, the rate needed to cover residential cost would be $17.26 per month,” Foreman wrote. “Under this same rate and operational model, if the city were to become the sole service provider of residential and commercial collection, the residential rate would only need to increase 10%. The increase in commercial revenue could be used to offset some residential loss.”
The rate increases also support the department’s transition of all its hauling division operations from diesel to compressed natural gas, which is planned to begin in 2022, according to Foreman. He added that the city needs to discuss potentially establishing a mechanism where rates increase every few years at, for example, a percentage of the consumer price index.
“That would eliminate all these ‘flat’ years and then a sudden 20% increase,” Foreman wrote.
Other changes are included in the ordinance as well. One section states that residential customers will be provided one city-owned 95-gallon refuse cart without additional charge, but additional carts, which would be provided upon request, will result in an additional charge of $10 per month per cart. This charge used to be $5, according to Foreman.
City Director Kevin Settle made a motion to amend this section so that an additional cart would result in an additional monthly charge of $10 and that three or more additional carts will have a charge of $15 per month per cart. Settle said his intent with this was to encourage more recycling, which would decrease how much goes to the city landfill.
Six of the city directors voted in favor of Settle’s motion, with George Catsavis of
Ward 4 voting against it. The amended ordinance passed with six votes as well, with Catsavis once again voting against.
RECYCLING AGREEMENT
In contrast, the board unanimously approved the resolution authorizing the recycling agreement with Birch Recycling. Birch is the city’s current recycling provider.
Foreman wrote in another memo that an item for a recycling contract was tabled during the board’s June 16 regular meeting. As a result, the request for proposals for recycling processing had to be republished for bids, with the bid being for the processing of commingled curbside recycling, Operation Green Office (OpGo) and commercial cardboard streams. The contract is for three years with the potential for two extensions of one year.
Foreman explained before the meeting that commingled curbside material is what goes in residential recycle carts; OpGo material is recyclables collected at businesses; and commercial cardboard is generated by businesses.
The city received three bids, according to Foreman. Birch Recycling submitted a bid with a fixed cost of $160 per ton, which is double of what the city currently pays. Foreman said part of the residential rate increase would cover this increase in recycling.
However, Foreman said the current blended value of the city’s commingled curbside and OpGo material comes out to $75.90, although he noted that blended value will change monthly as the market increases and decreases. The bid for commercial cardboard is $20 below current market value, which currently equates to $45 per ton, Foreman wrote. The city’s current arrangement for this is $40 below market value.
Foreman said that material is sorted and then sold by Birch based on market value.
With the revenue generated by the sale of commingled curbside and OpGo material and commercial cardboard, the city will pay an estimated $194,529 per year for Birch Recycling’s services under current market conditions.
The other bids were from Marck Recycling and Smurfit Kappa. Foreman wrote that Birch Recycling’s bid had the best value for this contract. Birch has purchased scales and is to install them in the weeks ahead, which will save the sanitation department about $45,000 in operating cost.