Garbage Collection Service Rates Remain Stable
The solid waste franchise agreement between the City of Newport and Thompson’s Sanitary Services, Inc., provides that in each even numbered year (i.e.2020), rates shall be adjusted in an amount equal to 85% of the two-year percentage change in the consumer price index (CPI).
This year’s rate increase will be 3.57% based on the two-year CPI adjustment.
Due to the economic impact of COVID-19 on both commercial and residential customers, Thompson’s will defer this rate increase until later in the fiscal year, as the economy stabilizes. Thompson’s will give 30-days advance notice prior to implementing the new rates.
Even though Thompson’s will not be implementing the CPI adjustments at this time, Council approved the rates with the CPI included on August 3. In addition, there are two specific rate adjustments the City Council approved. This includes medical waste disposal rates. Thompson’s has seen their disposal costs increase by 137.5%, as well as new requirements for handling the material increasing operating costs.
The second area is related to Thompson’s junk removal program. The disposal rates do not account for the actual cost of disposal. They proposed a new rate schedule based on weight which would include a rate of $33.45 for disposal of loads under 500 pounds and a rate of $150 per ton for loads over 500 pounds. This rate adjustment would reflect the true cost of disposal for waste generated by the customer and would be an appropriate pass-through expense as outlined in the City code.
The last change in rates approved by Council was in 2018. There has not been an increase since that time.