Commission approves automatic garbage-rate hikes

Adrienne Packer

Tuesday, Jan. 5, 1999 | 10:29 a.m.

An ordinance that allows Republic Silver State Disposal to adjust its rates according to the Consumer Price Index was approved unanimously by the County Commission on Monday.

Board members said they would rather the disposal company increase its rates according to the annual CPI than bump rates significantly every three or four years.

The new ordinance says no matter what happens with the CPI, which measures inflation, Silver State's fee hikes cannot exceed 6.5 percent. The only instance in which the county would consider a greater increase is if Silver State can prove it is in economic turmoil.

Silver State asked that in the case of deflation, it be allowed to increase rates by 1.5 percent, a request that was denied by the county.

"We weren't comfortable with that, so we went to a bottom level of zero," Commissioner Lance Malone said.

A representative for the Nevada Recycling Association was the sole protester Monday, saying the group is not opposed to the automatic increases but the county should ensure the hike is justified.

Silver State President Steve Kalish said the disposal company has not increased its rates since 1994 and could justify a 14 percent increase. He added, however, that he wants customers to continue to enjoy the highest quality and lowest rates in the country.

Silver State's twice-a-week pickup rate is $9.70 a month in Clark County, Las Vegas, Henderson and North Las Vegas. In Fresno, Calif., the rate for the same service is $16.44 a month, according to Silver State documents.

The highest rate in the western United States is in Fremont, Calif., where customers pay $19.85 a month for once-a-week pickup service.

The next rate increase will not be implemented until July 1, 1999, when the latest CPI numbers are available. The cities of Las Vegas, North Las Vegas and Henderson are considering the same ordinance.

Clark County rejected a similar ordinance in 1995 because commissioners were concerned the automatic increase would bypass public hearings.

Jim Spinello, manager of franchise services for Clark County, said Monday that board members can place an issue -- such as a rate increase -- on its agenda anytime there is concern.

Spinello said county officials felt residents would prefer steady increases rather than the 18 percent rate hike implemented in 1994.

"What they calculated out this time would allow for a 14 percent increase," Spinello said. "That vs. the CPI running under the 2 percent range looks like a better arrangement for the consumer.

"People are more accustomed to seeing things adjusted in that manner; it's more steady."