Trash Haulers Seek Rate Hike

BROOKSVILLE - One of the trash hauling firms that serves residential customers in the county is seeking a 14 percent hike in its rates, citing the skyrocketing costs of diesel fuel.
Central Carting Disposal Inc. wants to increase its residential pickup rates $1.56 more than its current monthly rate, or more than 14 percent.
The other two companies that serve the county are seeking smaller increases. Waste Management and Seaside Sanitation want increases for residential customers based on the change in the consumer price index, said Scott Harper, the county's solid waste services manager.
The change in the index varied from about 4.2 to 4.9 percent in May depending on the specific category. The haulers are allowed to ask for an increase based on the index as part of a contract with the county.
But the contract also allows the companies to ask for additional increases based on, according to the contract, "extraordinary circumstances."
Central Carting has done so, seeking nearly 10 percent more than the consumer price index, or CPI, because of rising diesel fuel prices, according to a letter from the company sent to county commissioners last week. The total increase would be 14.4 percent.
If approved, the monthly rate for Central Carting's residential customers would go from $10.93 to $12.49.
"(T)he astronomical increase in diesel fuel cost has far outpaced the CPI," Central Carting President Angelo Verrelli wrote in the letter.
The county commission granted a rate hike beyond the index to all three companies last year.
Verrelli acknowledged that in his letter, but noted that diesel fuel has gone from an average $2.78 a gallon to $4.69 a gallon since then. In 2007, fuel accounted for more than 14 percent of the company's operating costs, he wrote.
The contract for all three companies ends in September 2010. Waste Management doesn't expect to seek a rate increase beyond the consumer price index before then, company spokeswoman Martha Hidalo said Tuesday.
The company has about 43,000 customers located mostly in Spring Hill, Hidalo said. Customers pay $5.89 or $8.69 per month depending on their district. A 5 percent increase would be about 30 cents and 43 cents, respectively.
"(The price of fuel) is affecting every business, but it's not to a point where we want to burden our customers," Hidalo said.
A representative for Seaside Sanitation did not return calls Tuesday.
Its customers pay $11, so a 5 percent increase would be 55 cents.
Central Carting has no choice but to ask customers to help cover the costs, said Harold Sample, a finance manager for the company.
Central has some 5,200 residential customers in the county, located in the rural area east of U.S. 41. That makes for a long drive to the county landfill on U.S. 98 near the Citrus County line, Sample said.
The company also is preparing for things to get worse, he said.
"We understand everybody is suffering, but so are we," Sample said. "Fuel is such a huge part of our cost here, we just had to address it. And the petroleum prognosticators are saying this is only the beginning."
Commissioner Jeff Stabins sighed with apparent exasperation when told of the request. He said the county would have to request accounting figures from the companies as it did when they asked for rate increases last year.
"I would not be comfortable going along with this unless we have our utilities staff go in and analyze their books again," he said.
Stabins said he'd like county staff to be creative in the coming year and come up with a more "comprehensive approach" to waste management as the end of the contract with the three firms nears.
"The people just can't handle the increases this often," he said.