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Hawkeye Sanitation seeks temporary fuel surcharge; Cresco council asks for contract tables and exact threshold
Summary
Hawkeye Sanitation told the council higher diesel costs justify a temporary fuel surcharge that would amount to roughly $0.30–$0.38 per month per account based on company math; council asked the company to update contract Schedule A/B and return with exact threshold figures before approving any surcharge.
Representatives from Hawkeye Sanitation told the Cresco City Council on April 20 that rising fuel costs have prompted the company to request a temporary fuel surcharge for customers in Cresco.
"We do approximately 1,800 miles in the city of Fresco per month," said Lucas Merritt of Hawkeye Sanitation, describing the company's mileage and fuel-cost calculation. He said the company’s baseline estimate came to about $688.36 in extra monthly fuel-related expense, which divided across about 2,000 accounts produces a per-account figure in the neighborhood of $0.38 per month (the company and council discussed a range of figures during the exchange and agreed staff needed a precise calculation).
Council members pressed for a clear threshold (the fuel price or index that would trigger the surcharge), asked whether the surcharge would sunset automatically if fuel prices fell, and requested concrete examples of how the charge would appear on a resident bill. Nikki (administration) advised that the city's contract requires updates to Schedule A and Schedule B before council can act on a surcharge; she said staff would work with the company to produce the updated tables so the council can consider a resolution.
Council did not vote on a surcharge at the meeting. Instead, it directed Hawkeye Sanitation to provide the exact numbers and for staff to prepare contract amendments for formal consideration at a future meeting.
Next steps: Hawkeye Sanitation said it would provide the requested figures this week, and staff planned to return to council with updated contract schedules and a proposed resolution authorizing any surcharge.
