Lewiston council approves first reading of franchise amendment after Sunshine Disposal seeks index change and one-time adjustment

The Lewiston City Council on Monday approved the first reading of Ordinance 49-56, which opens the city—s 2021 franchise agreement with Sanitary Disposal Inc., doing business as Sunshine Disposal & Recycling, for specified amendments. The vote followed a public hearing in which Sunshine officials asked the council to replace the chained consumer price index used for annual adjustments with a solid-waste producer price index (PPI) and to consider a one-time increase to account for pandemic-era and subsequent cost increases.

Brian Coddington, representing Sunshine Disposal, told the council the company—s operating costs "have gone up somewhere in the about approach of 25%" and cited truck purchases, driver wages, cart and medical/insurance costs as principal drivers. He said Sunshine—s initial adjustment request had been for roughly 18.5% inclusive of normal CPI changes and argued a PPI better tracks industry-specific expenses. "Trucks are obviously a large expense," he said, noting recent truck price quotes in the "$500,000" range.

Several council members and members of the public pressed Sunshine for more detailed back-up. Brandon Johnson, a Lewiston resident who spoke during public comment, asked whether the company—s 2020-21 cost increases were already factored into the contract negotiated in 2021 and urged the council to require Sunshine to supply supporting cost data before approving structural changes. "If regional or local impacts were less substantial than national industry averages, is it equitable for Lewiston rate payers to absorb increases based on broader national trends?" Johnson asked.

City Attorney Jennifer Tangano warned the council that the existing franchise agreement includes language limiting the grounds for amendment. She pointed to the agreement—s provision stating that "any changes in franchisee—s cost of operation, whether or not beyond franchisee—s control, shall be the sole responsibility of franchisee" and noted the force majeure clause requires documentation and is discretionary. Tangano said council discretion remains but recommended careful review of Sunshine—s evidence before making permanent indexing changes.

Public Works Director Dustin Johnson told the council that an earlier clerical mismatch between the PPI figure and the ordinance exhibit had been resolved and that the ordinance as drafted would be harmonized before adoption. He also reminded the council that the ordinance requires three readings; the council voted on the first reading Monday and may amend later readings.

Councilor Spickelmeyer moved to approve the first reading of the ordinance; Councilor Klein seconded and the motion carried on the voice vote. The first-reading action does not finalize an amendment but advances the ordinance to subsequent readings, allowing staff and council additional opportunities to request supporting cost documentation, seek clarifications of the proposed local-office definition and consider alternatives such as testing the market when the contract renews.

Next steps: the council will review supporting cost data if provided and will consider amendments or additional evidence at the ordinance—s second and third readings before the amendment could become final.