2005-91 AUTHORIZING MAXIMUM RATES FOR REFUSE HAULERS

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, , . � Report of Proceedings In Re: Refuse Haulers request for Rate Increase. On July 14, 2005, eight of thirteen refuse haulers operating within the city limits of the City of Decatur filed with the City Clerk their request for a rate increase seeking a 7.7% rate increase in all areas of service except the bag service with no yard waste pickup. As to the latter area of service an increase of 36% is sought [See exhibits 1& 2]. The haulers are also seeking an automatic rate increase for the years 2006 and 2007 based on the Consumer Price Index [CPIJ, a fuel surcharge and alterations to the yard waste requirements. The request was made pursuant to Chapter 56, Section 42 of the City of Decatur Ordinances. Of the remaining five haulers, two publicly expressed their opposition to the proposed rate increase but indicated that an increase of some sort may be appropriate. No opinion, either pro or con, was expressed by the remaining three haulers. Those haulers seeking the increase are Onyx, R&H Disp., C&C Disp., Doolin Disp., Jeremy Doolin Disp., Meador Disp., Nicholson Disp., and Ross Disp. Those haulers publicly opposing the increase as proposed are Waste Management and Suburban Disp. The eight haulers seeking the increase service approximately 80%of the 27,600 households within the city limits. Onyx is the largest with approximately 14,850 households and each of the others 1000 households each on average. On August 4, 2005, a public hearing was held pursuant to notice as required by the ordinance. Over the course of the three hour hearing, much evidence and many comments were heard concerning the increase in costs,yard waste removal, lack of choice of hauler, and the level and quality of services rendered. Presumably, council members will have access to the entire transcript of the hearing and may review it if they so desire. Consequently, this report will not detail the information received except as is necessary to explain and resolve the issues presented. As previously pointed out, only eight of the thirteen haulers are seeking the rate increase. However, if any increase is approved by the City Council, all haulers would be affected as the ordinance's expressed purpose is to provide uniform levels of service and uniform prices throughout the city. The lack of unanimity among the haulen as to the need for an increase as proposed should be taken into account in evaluaxing the Petitioners request. The last rate increase that the haulers received was 2%in January,2004. Prior thereto, the rates were increased 27% in January, 2002 and 2.3% in January, 2003. The large increase in January,2002 was based on the fact that there had been no increase for the prior 6 years.The latter two increases were cost of living increases based on the then current Consumer Price Index �CP�- Petitioners have claimed that regulatory costs and general cost of living increases have necessitated their request for a rate increase. Without presenting any evidence in support, other than parenthetically referring to the Consumer Price Index [CPI], petitioners have claimed increased labor costs, maintenance costs, insurance costs, etc. The main focus of the presentation at the hearing was the increase in the cost of diesel fuel and regulatory costs. Increases in these operational costs were largely discussed relative to the pickup and disposal of yard waste. As mandated by the State, yard waste must be kept separate from garbage and also disposed of at a facility other than a la�dfill. The regulatory costs specifically addressed were the increases in city licensing fees and the vehicle registration fees. The state increased the"tipping fee tax"