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Council approves request of city franchisee, looks ahead to plan future increases more intentionally

COURTESY PHOTO: UNSPLASH/JAMES DAY - The rate increase will be dispersed in chunks, increasing fees by $3.22 in September 2020 and an additional $3.22 in March 2021. It's official. If you are a Sandy customer of Hoodview Disposal, your disposal rates will increase by $6.44 per month by March 1, 2021.

With the cost of hauling and disposing of recycling being sent more and more to domestic haulers in the United States, Hoodview Disposal has requested an increase in rates as approved by Sandy City Council.

"Hoodview's cost analysis for the provision of solid waste and recycling services concluded that the company lost 8.47% in calendar 2019; a loss of $172,387 on revenues of $2,036,148," City Manager Jordan Wheeler said in his staff report to Council. "The reasons for this revenue impact ... included the disruption and cost increases in the recycling market. The options to address this impact are limited given that state law requires cities to provide recycling services. To remedy this situation, Hoodview is proposing a general rate increase of 25.15% to be phased in over six months."

Council spoke with Steve Donovan and Andy Kahut of Hoodview on July 6, before eventually formally approving the company's request on July 20.

Currently, the average rate payer in Sandy pays a combined fee of about $25.59 a month for one 32-35 gallon can, recycling and yard debris.

The end increase will be $6.44 per month but phased in in two chunks — $3.22 by Sept.1, and an additional $3.22 by March 1, 2021.

Council and city staff have discussed amending the city's franchise agreement with Hoodview to schedule out future rate increases to be more incremental and smaller over time and avoid larger, abrupt increases like that just approved, but no action has been taken to make those changes yet.


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