City will add surcharge to refuse fees July 1
June 26th, 2008Off the chart. Rising fuel costs have led Gaylord’s City Council to approve a fuel surcharge addendum to its garbage hauling contract for the second time in two months.
Starting in July, Gaylord residents will notice a $1.25 increase per month in garbage rates. The City’s current contract with Gaylord Sanitation allows for such an increase due to cost hikes in diesel fuel.
In April, council members approved a similar addendum. But, that addendum only addressed increases when the cost per gallon of diesel fuel reached $4.24. According to City Administrator Kevin McCann, Gaylord Sanitation’s cost for diesel fuel this quarter averaged $4.37 per gallon.
McCann reported that Gaylord Sanitation buys its fuel in bulk. After three months of service, an average cost paid by the garbage hauling firm will be determined. If the average is $3.25 per gallon or more, a fuel surcharge will be added per month, per household for the next three months, McCann explained.
This fuel surcharge review process will continue every three months until the end of the contract which expires December 31, 2008. There will be no surcharge if the average cost per gallon is less than $3.25 per gallon.
Also approved by council members Wednesday was a $10 increase in the amount the City pays for the compost dumpster service provided by Gaylord Sanitation. This dumpster, located behind the Gaylord Sanitation building, is for the disposal of grass clippings and leaves. The City will now pay $75 per month for that service.
$/gal. of diesel - Surcharge/month
Under $3.25 - No surcharge
$3.25 to $3.49 - 25¢
$3.50 to $3.74 - 50¢
$3.75 to $3.99 - 75¢
$4.00 to $4.24 - $1.00
$4.25 to $4.49 - $1.25
$4.50 to $4.74 - $1.50
$4.75 to $4.99 - $1.75
$5.00 to $5.24 - $2.00
$5.25 to $5.49 - $2.25
$5.50 to $5.74 - $2.50
$5.75 to $5.99 - $2.75
Over $5.99 - To be negotiated
