Saundra McDavid

Allied Waste is asking the City of Eagle for approval to increase the rate it charges customers, and it wants the City of Eagle to rush into a decision in time to get the increase on this quarter’s billing cycle.  Representatives claimed that the increase is due to an unforeseen increase in the cost of diesel fuel. They claim that no one could have possibly guessed in 2005 that gas prices might increase, so it has the right to demand more money from Eagle residents.   Don’t be fooled by this argument.  A deal’s a deal.  Allied Waste needs to live by the contract is signed.  In return it receives exclusive rights to service the city of Eagle.  Ask other small waste collection companies about the strong arm tactics Allied Waste uses in order to protect its monopoly on garbage collection in our area.

As pointed out by Councilman Norm Semanko, the cost of diesel fuel when Allied Wasted entered the contract with the City of Eagle in 2005 was at an all time high.  According to the Energy Information Administration (Yes, we really do have one) the average cost of diesel fuel in October of 2005 was $3.15 per gallon.  Today the cost is $4.02 and falling.  (http://tonto.eia.doe.gov/dnav/pet/hist/ddr001w.htm). 

“Allied Waste Industries Inc., the country’s second-largest waste-management company, on Wednesday reported a 22 percent jump in profits in the past quarter, thanks to a rate increase that offset a slowdown in business” according to a July 30, 2008 article in The Arizona Republic.  “The company handled 4.8 percent less garbage volumes but increased prices an average of 6.9 percent.”  This appears to be the real reason that Allied Waste wants to increase rates.  It’s not the price of fuel (which was obviously increasing at the time the contract was signed and was obviously a foreseeable expense).  The reason Allied Waste desires to alter its contract and raise our rates is because its business has slowed down and it needs to keep up its revenues for its shareholders.

My business currently pays $228 per month for services from Allied Waste.  Last year the cost was $170 for the same service.  It was $166 the year before.  All of these rate increases to a company that reported a 22% increase in profits.  It is time to say “NO” to the rate increases.  It’s time to put out this contract for competitive bid.

Eagle City Council – JUST SAY NO!  At Tuesday’s City Council meeting Councilman Guerber listed many reasons why the Eagle residents should gladly pay over more money to Allied Waste, including something along the lines of “Since businesses normally raise their rates and pass it on to the customer, and because Allied Waste has to come to the City of Eagle and ask to raise rates, we should allow Allied Waste to raise our rates so that Allied Waste can pass on the increased costs of fuel to the residents of Eagle.”  An argument obviously not made by a business person.  In reality businesses often absorb cost increases so that they don’t lose customers; something Allied Waste doesn’t have to worry about since it has a monopoly on the trash collection in the area. We, as Eagle residents, can’t walk away from the deal in search of a lower price.  And there’s undoubtedly an ordinance against burning trash.

Councilman Huffaker wanted to be “fair” and a “good neighbor” to Allied Waste, although he pointed out that the contract language was vague and needed to be cleared up.  Huffaker did not agree on any specific rate increase and asked that the decision be put off until the contract language was made clear.  Mayor Bandy offered to have a special council meeting so that the contract addendum with Allied Waste could move forward in time to get the increase on October’s billing cycle.  Huffaker declined.  Councilman Semanko was opposed to raising the rates. A deal’s a deal.   I’m on Semanko’s side on this one.  JUST SAY NO!

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