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Sanitary Service presents franchise-fee change and state recycling funding; council hears cost and implementation estimates

2689338 · March 11, 2025
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Summary

Sanitary Service briefed Baker City Council on a change to how the franchise fee will be shown on customer bills, the proposed franchise fee increase to 7 percent, and a preliminary recycling award and cost estimates tied to a state program taking effect July 1.

Baker City — Sanitary Service presented proposed changes to its billing format and an update on funding and cost estimates for rolling out on-route recycling under the new state program that takes effect July 1.

Steven Henry of Sanitary Service said the company will break out the franchise fee on customer bills and that the municipal franchise fee is increasing from 5% to 7%. Henry said the only service showing a higher component than the flat 2% change is roll-off boxes, which previously were priced without a franchise fee because of past competition; the franchise agreement gives Sanitary Service exclusive rights for roll-off service within city limits.

On recycling, Henry said the Circular Action Alliance (the nonprofit coordinating some state-startup grants) has indicated an initial award for Baker City of about $1,400,000 to buy two trucks, depot equipment, carts and containers. The funding agreement is not final, Henry said, but the grant would reimburse 100% of transportation costs to carry commingled recycling from Baker City to sorting and end-market facilities.

Henry presented preliminary client-rate estimates. For weekly garbage (65-gallon cart) coupled with every-other-week recycling in a 95-gallon cart, he estimated a monthly customer charge of about $28, with the franchise fee component shown separately on bills. He said comparable nearby cities with similar service range from about $30 to the low $40s per month for similar service. Sanitary Service recommended every-other-week recycling collection as a best-practice starting point and said the program will require mandatory participation for customers that receive city garbage service.

Henry said commercial recycling options could include providing 95-gallon carts to commercial customers and creating subscription options for some rural customers to add service. Councilors asked about missed pickups and other operations; Henry said crews will return for missed collections and that depot drop-off will remain an option during the transition.

No council vote was recorded on rates or on shifting the franchise-fee presentation; staff said the planned implementation date for the billing change is May and that the state recycling law takes effect July 1.

Key figures and next steps

- Initial recycling funding indicated to the city: about $1,400,000 (for trucks, depot, carts and containers). - Estimated residential rate for weekly garbage + every-other-week recycling (65/95 gallon): about $28/month (estimate provided by Sanitary Service). - Franchise fee: proposed to be shown as a separate line and increase from 5% to 7% on customer bills. - Implementation timeline: billing change planned for May; state recycling law effective July 1; funding agreement to be finalized.