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Town approves temporary $4.50 fuel surcharge for trash service after contractor’s request
Summary
After a public comment from the trash contractor, the council approved a temporary fuel-surcharge mechanism tied to a $4.50/gallon base and the contract’s existing formula; the change will be itemized on utility bills and is expected to take effect at the July billing if software delays persist.
Sam, the contractor representative, told the council his contract’s addendum allows a fuel-surcharge trigger when diesel exceeds $2.90 per gallon and that current diesel is about $6.50. He proposed using $4.50 as the base for the surcharge calculation and explained how the contract’s compounding formula (2% per $0.10 increment) would affect customer bills.
Sam and council members discussed estimated impacts on household bills; staff said setting a $4.50 base would raise the municipal share and that the town could choose how much of the increase to absorb. Ken moved to add a fuel-surcharge based on $4.50 per gallon and to itemize the charge on private trash/utility bills; Tom seconded and the motion carried by voice vote.
Council and staff noted software limits for utility billing: if new billing software cannot be implemented in time, the charge could appear on the July bill rather than June. Council also said they will monitor prices and automatically reduce the surcharge by the contract formula if diesel falls below $4.50.
What happens next: staff will implement the itemized fuel-surcharge on utility bills when software permits, monitor diesel prices as specified by the contract, and return to council with implementation details if adjustments are needed.
