Public Works Director Philo Shelton speaks June 27 to County County Council about raising refuse, recylcing and solid waste facility fees for residential and commerical customers. Photo by Kirsten Laskey/ladailypost.com

​Environmental Services Manager Angelica Gurule discusses increased rates June 27 at the County Council meeting. Photo by Kirsten Laskey/ladailypost.com

The Environmental Services Division is operating in the red and to change this, Public Works proposes a rate ordinance that would result in increased refuse, recycling and solid waste facility fees for commercial and residential customers.

The proposed increases are $3 per month or a 13.6 percent for residential rates and 3 percent increase for commercial rates. This means homeowners would pay $25 a month for trash and recycling services. In FY17, they paid $22 a month. Commercial business would pay a total of $146 for both trash and recycle dumpsters. In FY17, businesses were charged $141.46. If Council approves the new rates, they would go into effect starting Sept. 1.

The proposed rate increases were presented to County Council Tuesday, June 27, but the Council tabled the issue till its next regular meeting on July 11 in order to get additional information on the rates. Council directed staff to look into projected revenue and expenses for Fiscal Year 2018. Additionally, Council wanted more details on rates for commercial customers.  

Councilor Pete Sheehey emphasized they wanted prices that were fair for everyone.

“We understand we have to cover costs (but) we and our citizens expect those costs to be fairly proportioned,” Sheehey said.

He added, whenever the County implements a rate increase the hope is “it is at least as fair as we can make it.”

Public Works Director Philo Shelton told County Councilors that for the past two years there have been $2 increases. He added that staff started looking at rates on a quarterly basis and discovered there was a shortage on revenues. During the February Environmental Sustainability Board meeting, board members suggested implementing rate increases. The proposed rate increases were presented to the board in March and the rates were published in the Public Works’ budget in April. Shelton said the largest deficit was in the residential.

According to the presentation given to County Council June 27, in Fiscal Year 2017, residential services operated at a loss of $196,127, commercial services operated at a loss of $97,999 and the transfer station lost $40,806.

Shelton explained the rate increases are needed to build up revenue to help offset expenses. He reported to Council that the Environmental Services has worked to increase working capital over the years but have needed to make a substantial amount investments on improvements. Some were planned, some not, Shelton said. For instance, the division received a notice of violation for methane migration and as a result installed liners and methane monitoring wells in order to better monitor the methane. Additionally, the division built a new compost facility and purchased a new truck and roll carts for its brush and bulk recycling program.

“As you can see, our operating reserves are dropping,” he said, adding that the Environmental Division has less of a financial cushion.

He told the Los Alamos Daily Post that rates generate revenue and the revenue is used to pay expenses for hauling trash and recycling off the Hill as well as paying the contractors that receive the trash and recycling. Shelton said the Environmental Services Division is not trying to over collect but today’s rates are currently eating into reserves and “we want to maintain some reserves.”

Additionally, with oil prices low, the prices for recycled materials have stabilized at a lower commodity rate than in the past; with the exception of cardboard.

“These other commodities are not adding enough value to our formula,” Sheehey said.

Councilor Antonio Maggiore questioned hiking residential rates up 13 percent while commercial rates rose 3 percent. He wondered if there was a way the difference could be split to make both equitable.

Environmental Services Manager Angelica Gurule commented that residential customers are charged more because they are given more services. In addition to trash and mixed recycling pickup, residences are offered brush collection, free compost and mulch, drop off for hazardous household wastes, recycling services for refrigerators and electronics as well as other services.

“Those are just a few services that we provide to residences that are not provided to commercial customers,” Gurule said.

The whole goal behind the rate structure, Shelton said, is to create incentive and increase diversion of waste being sent to the landfill.

“We try to recycle almost every material that is possible,” he said. “We recycle asphalt and concrete on site … we have brush that we grind and turn into compost. We have cardboard recycling … that’s an area we want to enhance with this new rate structure … these are all the things we are trying to divert from the landfill and do it in a environmentally sound practice.”  

In regard to commercial customers, Councilor Chris Chandler asked whether the Environmental Sustainability Board or staff considered raising commercial trash pickup rates more to encourage recycling, particularly cardboard.

Shelton said while reducing the number of pickups has been discussed, raising rates has not.

During public comment, Brady Burke questioned why out of town transfer station customers are charged the same rates as Los Alamos County residents. He felt out of town customers should be charged more.

North Mesa Stable Owners Association President James Whitehead commended the County on an informative presentation but questioned the proposed new fee of $150 for large animal disposals. He said people would probably be more inclined to go to Santa Fe and save money. “I think the $150 fee needs to be better defined, better justified.”

The new proposed fee is actually $65 and the current fee $150, Shelton said. 

The  recycling program seems to be experiencing a lot of success in terms of the community’s participation.

“Los Alamos is definitely a leader in the solid waste industry,” Gurule said.

Shelton agreed; telling the Daily Post, “Our residents have an excellent recycling rate. Most homeowners are doing the home recycling … we send down a better quality of mixed recycling than other customers in the metro area.”