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Expect garbage rates on South Shore to rise


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By Kathryn Reed

South Tahoe Refuse customers on the South Shore are likely to see their rates to go up by more than 3 percent starting Jan. 1.

The garbage company is asking for a 3.7 percent hike in South Lake Tahoe and Douglas County, and 3.5 percent in El Dorado County.

Terry Trease, STR’s controller, told Lake Tahoe News the increase is needed to keep up with the annual spike in the disposal fee the company pays at the landfill, rising insurance costs, and adjustment to the interest rate on the outstanding $10 million loan for the facilities.

Employees received a 2 percent pay hike on July 1. Workers also received raises two years ago. Trease said there were no raises during the height of the recession.

When the economy took a turn, STR reduced the employees’ pension contribution from 10 percent to 3 percent. It is now at 4½ percent.

The Waste Management Joint Powers Authority this week discussed the potential rate hike. This board – made up Nancy McDermid from Douglas County, JoAnn Conner of South Lake Tahoe and Norma Santiago with El Dorado County – is the first to vote on any potential increase. Then the three take the proposal to their respective boards. The JPA board members will vote at a special meeting on Oct. 23. It could not happen Sept. 10 because rate review was not complete.

An independent consultant is tasked with analyzing STR’s proposal and then making a recommendation to the JPA board. It is possible the recommendation would be for a lower rate increase; seldom is the outcome a higher rate. That person will dissect STR’s revenues and expenses, factor in allowable profit and then make a recommendation.

“A certain percentage of our costs go up no matter what we do,” Trease told the JPA board. “We’ve cut operations as much as we can. We are trying to do more with less.”

STR, per its franchise contract, may ask for a rate increase every three years. In the interim years rate hikes are based on the Consumer Price Index, with fuel costs being one of the main factors. Rates increased at the start of this year for all three jurisdictions: 2.78 percent increase in South Lake Tahoe and El Dorado County, and 2.73 in Douglas County. Per month, this equated to 69 and 79 cents for city and El Dorado County residents, and 45 cents for Douglas residents with one 32-gallon can.

Part of the rate review will be to analyze STR’s proposal to alter the loan it has to pay for the South Lake Tahoe plant. The current interest rate is 1½ percent, but it’s a variable rate. With projections calling for interest rates to escalate after the new year, the company wants to obtain a more secure rate so it plans to lock in a rate of 3 percent for a three-year period. (The loan will be paid off in 10 years.)

Trease told LTN, “This gives us protection.”

He said they looked at going for a longer term fixed rate, but those rates were between 5 and 6 percent. Before the 1½ percent was secured, STR was paying 4 percent. It is trying to stay below that number.

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Comments (28)
  1. Dogula says - Posted: September 13, 2014

    Okay, that’s it. My medical insurance has gone up by 60%, electric’s gone up, property taxes were increased, (thanks, SLT, and gov. brown) water bills are going up, gasoline is up, groceries cost a lot more. I haven’t raised MY fees since 2002.
    I’m raising ’em now.

  2. tony colombo says - Posted: September 13, 2014

    Why an increase when all these 2nd homes hardly ever need trash pickup, yet pay quarterly too?

  3. david dewitt says - Posted: September 13, 2014

    I think that a fee should be charged and the money used to install bear boxes on all property in town

  4. Old Long Skiis says - Posted: September 13, 2014

    Tony Coloumbo, STR will get their rate increase, it’s written into the contract they have with the city of SLT to provide mandatory garbage service.
    Yes, all those empty vacation homes who rarely have trash must also pay a quarterly bill even when they have no trash.
    The 2nd homeowners on my street are not happy with this but they have no choice but to pay the bill or from what I understand the unpaid garbage bill goes onto your property taxes.Call me and I can explain further, OLS

  5. Steve says - Posted: September 13, 2014

    With a closer proximate distance from the refuse company’s facilities, lower fuel costs needed to get there, higher densities including more common dumpsters which pay the same per living unit rate as single family homes, and resulting economies of scale, one would think South Lake Tahoe city ratepayers would benefit by lower rate increases than surrounding, more spread out, more rural and farther areas requiring more time and fuel to service.

    Instead, city ratepayers appear to receive the highest increases of any jurisdiction. Hello?!

  6. david dewitt says - Posted: September 13, 2014

    I AM 81 YEARS OLD AND HAVE LIVED IN MANY TOWNS IN THE STATES AND WE HAVE THE BEST TRASH PICK UP IN THE COUNTRY, WHO WOULD PICK UP AFTER THE BEARS AND CAYOTES

  7. WantToLeaveTahoe says - Posted: September 13, 2014

    They should have a surplus with the number of vacation homes in Tahoe who don’t have garbage most of the year. We pay for the whole year but only have about 16 pick ups a year. I already pay the same amount in Concord where I have pickups every week. Plus I receive 3 free pick ups a year. Something is not fair.

  8. eco alarmist says - Posted: September 13, 2014

    The short term rental house near me constantly leaves trash out days in advance of pick up. People who visit don’t know when the scheduled pick up is or willfuly leave it out. Of course animals get into it and the collection people have to pick up after the tourists leave. I have a bear box and it only takes them a second to collect. But the vacation rental : much more time. Plus I end up picking up crap that gets dragged all over and the garbage men miss.

  9. Pigster says - Posted: September 13, 2014

    I’ve owned a vacation home in the keys for over 25 years and have obviously paid a premium for occasional service. I must say our local company’s service is outstanding not only for home pick up but also at the transfer station. Always timely friendly and professional.

  10. eco alarmist says - Posted: September 13, 2014

    WantToLeaveTahoe.: what is not fair is picking up after vacations renters because the out of area landlord is too cheap to get a bear box. Rotten sausage, ribs old lasagne – I have had to pick it all up after the animals get it when the vacationers leave.

  11. Local says - Posted: September 13, 2014

    When was the last rate increase? Seems like it was not that long ago. There have been increases in water, electric, gas and sewer. The price of food is skyrocketing, gas is near four dollars a gallon. People on fixed incomes and reduced incomes just can’t afford all of these increases.

  12. Facts says - Posted: September 13, 2014

    STR is the same deal as STPUD, they will get their increase, they are in bed with the City Of South Lake Tahoe. Here we are in a horrible local economy(a true serious deep recession) yet these big monopolies get what ever they want any time they want it as they break the back of our local community financially. Creating more of financial hardships on the already struggling common working person. They need to cut the fat over there such as one employee who is known to over spend immensely on unnecessary expensive equipment not really needed thus wastes the rate payer money! STR get a true professional to replace him who knows and is competent of what they are doing. He is not worthy just because he married into your filthy rich family who are creating financial hardships because of your greed for the almighty dollar.

  13. Blue Jeans says - Posted: September 13, 2014

    If a trash is left out at a house near you, call the Clean Tahoe program. They will clean up, notify the owner of the residence and, ultimately, require a bear box to be installed.

  14. Noel F says - Posted: September 13, 2014

    The garbage service provided by this contractor is in the dark ages of the garbage industry. Modern providers use mechanized pickup with one operator per truck, not three. They also have true mechanized recycling both pickup and sorting. This of course provides a much more cost effective collection and recycling effort for the City. This begs the question ….why does the city contract not expire until 2028? This should be subject to a bid cycle of no more than five years. This whole situation “stinks.”

  15. Old Long Skiis says - Posted: September 13, 2014

    First thing, if you can get to the chilli cook off at the Rec. Center do so! It goes till 4 this afternoon. Some damn good chilli and cool locally made stuff to purchase. And yes I do have chilli dribbelings on the front of my shirt!
    Now as far as STR goes, I do have some knowledge of that company having worked there for a little over 31 years. Yes, some unnecassary equiptment is purchased by the person you mentiomed, and I might add,some buildings were bought, demolished and new buildings were erected that were not needed. The cost is passed along to you and me, the rate payer, in your quarterly bill.
    There’s no escaping it man, they’ve got the system wired! Take care, OLS

  16. fireman says - Posted: September 13, 2014

    I would love to see the automated trash trucks try and pick up those cans in the winter. We are not in the bay area this does operate differently. I feel the service provided is exceptional. Just like with STPUD things are working differently than other places. Yep it cost more but we don’t have trash everywhere and we don’t have sewage being dumped into the basin. I feel the cost of doing this is worth the outcome.

  17. Old Long Skiis says - Posted: September 13, 2014

    I feel I have to say something else in regards to STR’s rate increase. The guys and gals that work there do an excellent job! Where else can you pay a flat rate for unlimited amount of trash you put on the roads edge on pick up day? It’s not charged per can. You can put out out 176 bags of pine needles like my neighbor, the 2nd homeowner who lives in Sacramento did, and it cost the same for me to put out 1 can! Nothing agaist the owners of STR, (I still consider them my buds) but to be honest the pay to work there is not that great.
    The last dozen years working there as a route supervisor I was paid pretty good by STR. My crew? On the other hand, well they need a big bump in pay. Those guys work in all kinds of weather and they clean up after the bear mess and other animals that get into the trash from folks that don’t secure their trash from wildlife. So love your garbageman!!!OLS

  18. Dogula says - Posted: September 13, 2014

    I leave the STR crew a Christmas present every year. Usually a case of beer or something, with a bow on top on the last pickup day before. They DO do a good job.

  19. cosa pescado says - Posted: September 13, 2014

    Dawg seems to be confused by why prices go up over a 10 year period. Can someone please explain that to her?

  20. Noel F says - Posted: September 13, 2014

    I never said anything detrimental about our service or their workers. I have lived in a cold and wet environment and yes the mechanized pick up devices work fine regardless of the weather. My point is there are better ways to provide our refuse service and because of the length of this contract we will not get the benefit. Just imagine being able to easily recycle almost all of our trash and the impact that would have on the landfills. The service charges are structured in a manners to account for vacation homes, no other reason.

  21. Lou Pierini says - Posted: September 13, 2014

    Noel F, STR recycles more trash, % wise I’ll bet, than any place you’ve lived. The state mandated it and STR was at the top of the compliance mandate.

  22. Old Long Skiis says - Posted: September 13, 2014

    Lou Pierini, Yes! South Tahoe Refuse kicks butt on recycling! I no longer work there but when I left in 2009 we were close to 33% diversion of trash going to the landfill.
    STR is committed to this community and recycling what they can. Don’t know the current numbers but I’ll bet they’ve even gotten better!
    I wish them (STR) all the best! Good family run business and I still think about it everyday.
    Once a garbageman, always a garbageman. OLS

  23. Tahoe Mom says - Posted: September 13, 2014

    Noel F ~ Exactly how are the trucks with one operator and an automatic arm supposed to get cans out of bear bins?

  24. Marc says - Posted: September 13, 2014

    By far the best service that I recieve at my home. They do a great job. I will support the increase. However when stpud asks for more money…..

  25. Joby says - Posted: September 13, 2014

    They support the community in more ways then anyone knows. Locally owned and operated by fantastic people! Employe more than about any business in South Shore. If they were to sell to a major conglomerate, like the ones that have the one man trucks, unemployment in town would go up as would the rates. The MERF system is fantastic, no need for curbside recycling. The second homeowners fortunately keep our rates down. It is hard for me to feel sorry for someone that can afford to have two homes……I will always support STR because they are well managed and conservative in the way they do business.

  26. Noel F says - Posted: September 15, 2014

    There are a lot cheaper alternatives to bear boxes. My can is bear proof and has wheels. The bears have made a number of attempts to open it, but 1/4 steel around the top with simple locks that require thumbs to open seems to do the trick. 8 years and not opened yet. It takes about 5 seconds for the workers to open as opposed to opening bear boxes and manually removing cans.

  27. Lou Pierini says - Posted: September 15, 2014

    Noel F, I’am curious can you show a picture of this can/box?

  28. Tahoe Mom says - Posted: September 15, 2014

    That would still require more than one person and if you averaged the time spent opening your bear-proof can as opposed to my bear bin, I don’t think there would be much of a difference. Therefore, this would not be a cost-saving or time-saving endeavor.