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Chastened City Council undoing garbage plan
By ALEX LEARY © St. Petersburg Times, published February 15, 2001 CRYSTAL RIVER -- Less than a month after it approved a plan to turn commercial garbage collection over to private haulers, the City Council has taken steps to reverse itself -- a move officials warn could result in even higher disposal rates. Since the original ordinance was passed on Jan. 22, some business owners have complained that the rates offered by private companies are much higher than what the city charged. "You cannot believe how many calls I have gotten," council member Mike Gudis said during a meeting Monday. Echoing concern some businesses owners and residents hold, Gudis said he wanted to revisit the issue because he believes the residential service could be the next target for privatization. After a lengthy discussion, the council voted 3-2 to start the process to revoke the semi-privatization plan. Two public hearings will be held before any official action. The vote caused concern among city officials. They have argued for weeks that the Sanitation Department has been losing money because of chronic undercharging and increased costs. Taking on business accounts once again would only make matters worse, the officials said. The city will have to purchase a new garbage truck, which would cost taxpayers about $150,000. What's more, there would be less revenue for the city because 100 of the 250 commercial accounts have already signed binding contracts with the private haulers: Superior Waste Services of Florida Inc. and Waste Management of Central Florida Inc. Residential customers have already seen rates increase to $16.20 from $13.50 per month. An additional 5 percent increase is projected for next year. Rates could increase even further if the commercial accounts are assumed. Another possibility would be to pass the cost of the new truck on to the businesses, city officials said. Jack Armstrong, owner of J's Country Kitchen and the most vocal opponent of privatization, said that not only are private rates higher -- over $200 a month versus $118 -- but haulers will pick up only once a week. Food waste should be removed as often as possible, he said. Doug McCoy, district manager for Waste Management, who attended Monday's meeting, said many small businesses that signed up with his company in recent weeks are paying 40 percent less than what the city charged. But larger users, such as restaurants and convenience stores, may pay up to 30 percent more. That's not because his company is gouging them, McCoy said, but because the cost more accurately reflects market price. City records indicate many companies were paying far less than they should have if the city had followed correct practices in the past. For instance, one restaurant was being charged $328 by the city when it should have been charged $577. "A lot of garbage rates look like they have never gone up," said council member Bonnie Taylor, who voted against revoking privatization. "You can't run a business this way. And this city is a business."
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