THE DALLES — The Dalles City Council postponed voting on a proposed waste disposal rate increase, pending more information as to how exactly funds would be used.
Jim Winterbottom, Columbia Gorge district manager at Waste Connections, Inc., requested an increase of 5.05%. Winterbottom said that Waste Connections used the west coast consumer price index (CPI) to decide on the amount. This year’s CPI was 5.94%, which they decided to ask for 85% of, he said.
Councilor Darcy Long spoke up against the increase, asking for specifics as to what increases Waste Connections has faced and whether that really affects their bottom line. Long said she believed the CPI given doesn’t pertain to The Dalles, as it is an urban index pertaining to Portland, Vancouver and Hillsboro.
“Before we approve an increase for people, we need to know whether that increase really needs to be passed along,” Long said.
Winterbottom said Waste Connections bases their increase off of Wasco County Landfill, which always uses the metropolitan numbers.
“We have always shadowed that same number to remain consistent with what they’re charging us,” he said.
Winterbottom also cited fuel prices and the prices for sheets of metal needed to repair things like garbage trucks or dumpsters. He also pointed out that a customer with a 32-gallon trash can currently pays $18.80 per month, which would only go up by 95 cents a month.
However, Long said she believed the focus should be on the profit-to-loss ratio and whether the increase was fair to pass onto the consumer, rather than to have Waste Connections cover it. She said she wasn’t sure the increase should be a full 5%.
“As long as I’ve been on council, first it was 2.3%, then it was over 3%, and now it’s over 5%,” Long said. “And each time I’ve asked staff … to look into getting this reviewed before the next time this comes up.”
Long continued to say that the city’s current auditors, Marino & Company, also audit waste management, and that she believed the city should view that information before approving a price increase.
“I really have to know whether you really need that (increase) to continue to provide the service or you need that so you can keep a nice profit margin for the owners of the business,” Long said.
Winterbottom said he didn’t have those numbers in front of him, at which point Mayor Rich Mays said the council had two options: To make a motion and approve the increase or have Winterbottom return in January with the requested information.
City Attorney Jonathan Kara then informed the council that part of the city’s agreement with The Dalles Disposal is that they submit a financial statement to the city’s finance director every March 31. Kara said the city could view that information, as long as it had been properly submitted.
Interim City Manager Daniel Hunter then said he wanted to verify the city’s finance department had those records, to which Finance Director Angie Wilson responded that they do not.
Upon Mays requesting a direction from the council following this information, Councilor Scott Randall moved to adopt the price increase, which Councilor Tim McGlothlin seconded.
McGlothlin stated that he didn’t believe knowing the profit margin would make a difference, considering that the company has been reliable and honorable in the past.
“I just know that costs are going up and … to hamper this company from making a profit, I don’t know if that’s going to make a difference going forward,” McGlothlin said.
Long pushed back on this, voicing her concern about the missing financial records.
“My intention is not to hamper them from making a profit,” Long said. “My intention is to find out what our attorney just pointed out we actually are supposed to already know and have record of and do not, which actually concerns me even more.”
Long continued to say she just wanted to make sure consumers weren’t paying more than they needed to, and that she wasn’t trying to spite or work against Waste Connections.
“Of course I want to be fair to the waste management group,” Long said. “But I also have a duty to my constituents and I will stand firmly behind that.”
City Attorney Kara qualified that, technically speaking, because the records had not been submitted, waste management was out of compliance with the franchising agreement. Following this, Councilor Rod Runyon suggested that Councilors Randall and McGlothlin withdraw their motion and second, which they did.
The council is set to return to the issue at the next city council meeting once the requested information has been supplied.
The next city council meeting will take place Jan. 10, at 5:30 p.m.
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