Garbage pickup rate adjustment to be studied

The Las Vegas City Council on Monday will consider a proposed ordinance that will require Republic Silver State Disposal to adjust its garbage pickup rates according to the Consumer Price Index, which measures the rate of inflation.

It mirrors a bill that recently was unanimously approved by the Clark County Commission and the Henderson and North Las Vegas city councils.

While the ordinance was passed by Henderson officials without comment, North Las Vegas Councilwoman Stephanie Smith echoed county commissioners, saying she would rather the disposal company increase its rates according to the annual CPI than bump rates by 12 percent or 13 percent every three or four years.

"I think it is easier to be hit with little increments," Smith said at Wednesday night's council meeting. "I think this is consumer friendly."

Las Vegas City Attorney Brad Jerbic wrote in a recent memo to the City Council members: "The history of the city's contract with Silver State ... shows that it seeks approval of the City Council to increase rates based on increased costs ... approximately every three or four years since 1985.

"This has resulted in substantial increases (to consumers) the first year after each increase. For example, a 19 percent rate increase was granted by the city and other local government entities in the valley during 1994."

Local governments are also placing a 6.5 percent annual cap on fee increases, no matter what happens with the CPI.

But should the nation experience runaway inflation exceeding 10 percent, Jerbic said in his memo: "The council may depart from the CPI and use other methods for adjusting fees.

"Determining annual rate adjustments based on the CPI will cause a more reasonable, equitable and uniform process."

The County Commission this week indicated it would rather have Silver State increase its rates based on the CPI than sharply jack up the price to collect, haul and dispose of garbage every three or four years.

Silver State President Steve Kalish said the disposal company has not increased its rates since 1994 and could justify a 14 percent increase. He told the commissioners, however, that he wants customers to continue to enjoy the nation's lowest rates.

Silver State's twice-a-week pickup rate is $9.70 a month in Clark County, Las Vegas, Henderson and North Las Vegas. 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 Silver State rate increase is expected to be considered after July 1 when the latest CPI numbers are available.

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