Mayor Jan Hill broke a 3-3 Haines Borough Assembly tie Tuesday to recommend that the state regulatory commission regulate trash collection rates instead of the borough. Community Waste Solutions, the town’s privately-owned trash handler, said state regulation could lead to a hike in collection fees.
This action comes after the RCA set a March 2 deadline to hear a recommendation from the assembly on whether or not the borough would prefer to regulate trash rates charged to Haines residents.
CWS is soon to officially become a monopoly after it acquires the permit of Acme Transfer.
Solid waste rates have been unregulated for about 15 years, but as CWS becomes a monopoly, rate regulation is required.
CWS owner Tom Hall presented a letter to the assembly, saying borough regulation “would achieve the lowest possible rate for our community.”
Assembly members Mike Case, Margaret Friedenauer and Ron Jackson voted in favor of state regulation. Members Tom Morphet, Heather Lende and Tresham Gregg were opposed.
“I’m disappointed we don’t have more information on which to make a decision tonight,” Morphet said. “I don’t think we should fly by the seat of our pants on this question.”
Lende asked if the assembly or staff had any data to compare what an RCA rate versus a local rate might be.
“I guess I would like to know more about it before I ask the state to set our rates. I’d like to know what that would really mean for the average person,” Lende said.
According to the Haines Borough Solid Waste Management Plan written in 2000 and available on the borough website, “The RCA regulates rates to incorporate a 10-15 percent rate of return on the certified company’s rate base.”
The document was not discussed at Tuesday’s meeting, but company employee Sally Garton said afterward the proscribed return is more than the company is seeing now. Further, in determining income, the RCA looks at only collection income, not other sources of revenue, said company president Tom Hall.
Garton’s explanation suggested that achieving the RCA’s required rate of return could lead to a steep increase in collection fees.
Earlier in the meeting, Friedenauer said CWS had not provided information to prove that rates would go up if RCA took the responsibility.
“This is what the RCA does,” Friedenauer said, “Their mission is to protect the customer,” adding that the borough has no rate oversight experience. “I feel like we’re being more protective of our consumers in our community if we ask the RCA to do what they do best.”
Jackson agreed that the borough doesn’t have the in-house expertise to regulate.
Morphet and Lende contended that the City of Haines regulated rates for 20 years before consolidation, with Morphet saying that is proof the borough could do it in the future.
At the end of the meeting, after the assembly vote to recommend RCA adopt rate oversight, Hall said he would “do everything within his power” to provide more information to the assembly members “who don’t believe it’s in the best interest of the community to set the rate.” He implored members to reconsider.
“If anything, we’re at fault for not providing this ahead of time…but I have to come back and say I think it really would be a step backward,” Hall said.