Council could raise trash rate Monday

Whether residents of Cape Girardeau will pay more for trash pickup after July 1 depends on the city council Monday.

City staff say less waste tonnage coming into the transfer station during the last year, coupled with higher-than-anticipated maintenance costs for a fleet of trucks that use an automated arm to collect trash and recycling, are reasons customers should pay an additional 85 cents per month.

Large loads of trash disposed of by contractors and other commercial customers are down 3,300 tons, or 16.5 percent, compared to last year, according to Tim Gramling, the city's public works director, which means less money is being made at the transfer station that subsidizes the cost of the entire solid waste program.

"That is a key part of our program," Gramling said. "When that tonnage goes down, it hurts us."

Public works employees haven't pinpointed the reason for the decrease, but Gramling said it could be attributed to more construction and roofing waste going to recycling businesses and the lack of water-damaged items that need to be thrown out because of last year's drought. Natural disasters in the area in recent years, such as floods and tornadoes, meant many large loads were coming into the transfer station.

A Cape Girardeau Public Works sanitation truck picks up household waste from homes on Etherton Road on Friday in Cape Girardeau. (Adam Vogler)

Still, Gramling said, the drop doesn't seem to come from any particular area. Staff is trying to figure out the reasons.

As for the six trucks that collect residential trash and recycling, city maintenance workers have battled ongoing mechanical problems since the new pickup program began in 2010. The same trucks are used in a new collection program in St. Peters, Mo., which hasn't experienced the maintenance issues seen in Cape Girardeau. City staff reviewed that city's program before purchasing the trucks.

Maintenance workers and operators noticed shortly after the trucks hit the road in 2010 that tires and brakes wore out quickly and often needed replacement. The weight of loads on the single-axle trucks, combined with the area's terrain, were determined to be the causes. Gramling said the city has adjusted load sizes and use of the trucks, but the higher maintenance cost still is being incurred and likely will continue.

The proposed city budget includes a $55,154 increase in fleet maintenance costs. The city also worked with the trucks' manufacturer, and work has been performed under warranty.

The new pickup program, including the trucks and cans issued to customers, cost about $2.4 million in 2010. General revenue bonds were issued to cover the cost, paid back with the monthly rate charged to customers.

"We did our due diligence before the purchase of the trucks, but the cost for maintenance and repair has outpaced projections developed based on other cities' experience with the same trucks and operation," read a memo on the proposed rate increase prepared for council members by the city manager.

If the council decides to allow the increase, customer bills would increase from $17.50 to $18.35 a month. Fees at the transfer station for large load disposal also would increase 4.8 percent, to $54.75 per ton.

The total cost of the city's solid waste program is $3.45 million per year. City finance director John Richbourg said if the council does not approve the residential rate increase, the cost for the solid waste program will come within $17,000 of needing to use the emergency fund. No increases at all would mean the program would need $22,000 of the emergency fund to continue operations.

Several city council members were reluctant to approve the increase on the first reading of the ordinance June 3 because they said they were not made aware of the need for an increase early enough to evaluate the situation. The ordinance received three "yes" votes and two "no" votes; an ordinance requires four "yes" votes to pass.

The money that pays for the solid waste program is considered an enterprise fund by the city. Enterprise funds often are evaluated close to when the council needs to vote on an annual budget, which is before July 1. But council members said they should have been notified of the proposed increase during the annual council retreat April 26, during which budget matters often are discussed in detail. The council asked to see options on how to support the program.

Gramling on Friday said finding savings elsewhere is not possible because the solid waste program already is running with minimum staff and resources.

"There's just not a lot of places we can cut expenses, and what we could, we have," Gramling said.

The council will consider the rate and fee increases for the solid waste programs as an emergency ordinance because Monday is the last regular meeting at which the annual budget will be considered.

Mayor Harry Rediger said he believes the ordinance is likely to pass because there historically have been minimal increases imposed for trash collection.

The council also is expected to approve to a $1-a-month reduction in sewer charges Monday, meaning customers will see 15 cents added to their residential city services bill in the coming year if the council also approves the trash rate increase.

eragan@semissourian.com

388-3627

Pertinent address:

401 Independence St., Cape Girardeau, Mo.