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Council weighs lower compromise on Republic Services rate increase, asks staff for two scenarios
Summary
Republic Services proposed up to a 10.25% residential increase tied in part to operating losses at the Sisters Recycling Center; councilors debated spreading margin-repair across classes and asked staff to present both a one-third (0.333) and one-half (0.5) margin-repair scenario for a June decision, which would yield roughly 7.8–8.4% residential increases under those compromises.
Republic Services General Manager Erica Heitzman presented a rate-adjustment proposal that, with the Sisters Recycling Center kept open through January, would produce a residential request of 10.25% for the 12‑month period. The Residential total included 2.25% tied to keeping the recycling center open for six months, 3% for inflation, 1.3% for disposal pass-through, and 3.7% labeled as margin repair.
"The total ask would be 10.25%," Heitzman told council, detailing the components and noting that margin repair had been held as a separate operating-item in prior cycles. Council members pressed Republic Services on why industrial customers carry a 7.7% margin-repair component when industrial service does not use the recycling center. Republic Services and staff explained the recycling-center operating loss in recent years (staff cited about $50,000/year) has been allocated across customer classes in the proposed adjustment.
Council debate focused on how much margin repair to allow now. One councilor proposed allocating one‑third of the requested margin repair this year (0.333 of the requested margin-repair line), which would reduce the residential increase to about 7.8% and place the city closer to neighboring jurisdictions' recent increases. Another councilor proposed a 50% share, which would raise the residential increase toward roughly 8.4%.
Members asked staff to return at the June 10 meeting with a fee schedule resolution showing both options (0.333 and 0.5 of the margin repair) so councilors could consult constituents and adopt a master-fees resolution. Republic Services also said continuing glass-only service at the recycling center would not require a rate increase, and staff committed to produce a curbside-glass pro forma if council is interested in expanding curbside glass service.
