Trash collection rates will bump up in March
Garbage transportation rates are set to increase 6.5%, or $ 1.76 for a 35 gallon trash can per month, on March 1st. Loren’s Sanitation and Valley Recycling and Disposal customers are both affected by the increase.
Garbage transportation rates are set to increase 6.5%, or $ 1.76 for a 35 gallon trash can per month, on March 1st.
Keizer City Council approved the tariff changes at its meeting on Tuesday, January 19, 6-1. Councilor Ross Day was the only dissent. Loren’s Sanitation and Valley Recycling and Disposal customers will both be affected by the increase. Local freight forwarders need council approval to change rates as they are entering into franchise agreements with the city.
The monthly rate will increase again by 3% in March 2022. This increase adds another 0.87 cents to the bills for medium-sized containers.
“We thought we were here a year ago, but decided that  It wasn’t the year the rates were increased, ”said Dr. Estle Harlan, a management consultant who represented the two local hauliers for most of the evening.
At the request of Keizer city councils in 2019, interest rates will be raised over the course of two years rather than sharply increased in a single year.
In addition to the residential property price hikes, commercial transport rates would increase 3% this year and next, while roll-off container transport will only increase 9% once in March 2021.
Harlan said freight forwarder costs had increased despite a decision to postpone an increase for a year.
“The processing costs for mixed recycling have increased by 13%. Mixed organic substances [processing] has increased by 19.3%. Labor costs are up 2.2% and we expect further increases in all areas this year, ”said Harlan.
Barring the increased costs, Harlan said the carriers are trying to make a 10% profit, the goal across the industry. With the approval given by the council, Loren’s and Valley Recycling’s profit margin will increase from 6.4% to 9.2%. After the 2021 surge, Harlan said carriers will hit the 10% target. Without the increases, profit margins would drop to 3.4%.
The day questioned the justification and timing of the request.
“Why do I care what the industry’s goal is? We’re not here to make sure private companies make profits, ”said Day.
Increasing the cost of essential services when people grapple with the economic impact of a global pandemic was also part of Day’s non-voting.
In essence, Councilor Kyle Juran forced the freight forwarders to operate with such a narrow margin.
“If I tried to operate at a 3% margin, it would be difficult to keep this up year after year. If I had to ask permission to increase my prices, I would be in trouble, ”Juran said.
Even with the rate hike, Keizer won’t be an outlier compared to rates in nearby towns or in Marion County as a whole.
“When I look at the prices and compare them to others, I think Keizer is still doing pretty good business,” said Councilor Dan Kohler.
John Sulivan, general manager of Loren’s Sanitation, said both of Keizer’s hauliers are willing to work with residents who are struggling to meet monthly garbage and recycling costs. Calling the carriers’ main offices is the first step in resolving the situation.