Views on trash franchise differ

Trash collection has become a hot topic in Sisters, with city councilors and citizens lining up on opposite sides in a debate over whether to franchise out the city's services.

Approximately 30 residents attended a public forum on September 8 regarding the potential franchise agreement between the city and High Country Disposal. Every Sisters city councilor was present as well as a number of key staff members from High Country Disposal.

The city council designed the forum for two purposes. First, to provide information about High Country's proposed services and experience and, secondly, to solicit feedback from city residents about the proposed change from an in-house operation to a franchise agreement.

The council is scheduled to make its final vote on the proposed franchise agreement on Thursday, September 25, during the regular council meeting.

Brad Bailey, President of High Country Disposal, started the forum with a PowerPoint presentation of HCD's history, affiliated companies (Bend Garbage & Recycling, Secure Shred, Deschutes Recycling), and general operation.

Bailey's presentation clearly showed that their equipment, expertise, and proposed services were superior to Sisters present in-house capabilities.

"We also already have a franchise agreement with the City of Sisters so the city knows our commitment to quality service," added Bailey.

That agreement, which some do not believe is an actual franchise, allows HCD to provide services such as document shredding that the city does not provide.

HCD is proposing to take over the city's in-house refuse operation immediately, offering increased services to city residents (curbside residential recycling in addition to garbage and yard debris, better commercial solid waste and recycling services), while at the same time operating with the same rate structure the city intends to charge this year.

An analysis of the city's refuse fund for the next five fiscal years initially shows a budget surplus, through FY 08-09, and then a growing deficit for the next four years if the operation stays in-house.

The deficit projections are a direct result of future operating and capital equipment needs, vehicles, equipment, labor costs, gas prices and landfill fees, Eileen Stein said earlier this summer.

These projections include a 12.5 percent upward adjustment in existing rates for FY 08-09. Not much will change with the services currently provided, meaning no curbside recycling. The city would provide containers for yard debris, however.

Proponents argue that either the city raises rates much higher to account for growing costs over the next five years, perhaps as much as 40 percent, or they enter into a franchise agreement with High Country Disposal.

High Country Disposal is also proposing a 12.5 percent upward adjustment in fees if they acquire the franchise. The difference, however, would be in services provided. Curbside recycling (except glass), bulky waste collection, the purchase of all the city's refuse equipment, a yearly franchise fee, and the leasing of two acres of land at the present wastewater facility are included in the HCD proposal.

But not everyone agrees with letting go of the in-house operation.

Sisters councilor Lon Kellstrom has been a vocal opponent, arguing that the city will be giving up a lucrative profit stream of over $7,000 per month.

Stein, speaking during the public forum, said, "I believe the $7,000 a month impact can be made up through savings in other city departments, specifically the use of in-house folks for projects we would have otherwise have bid out."

Dave Moyer, longtime Sisters resident and Mayor during the early 1990s, is against the proposed franchise.

"We've had franchise proposals five times over the years. I wonder if there is enough money in the other (city) funds to absorb the shortfall?" said Moyer.

Curt Kallberg, owner of Kallberg Construction, asked about the city leasing two acres of land to HCD and whether the potential franchise was advertised.

"Why is the city all of a sudden in the land leasing business with HCD and did the council advertise the franchise, take proposals from other companies?" asked Kallberg during the forum.

"The city has an existing franchise agreement with HCD and it just made the most sense," Stein said.

Councilor Sharlene Weed quickly added, "To answer your question directly, we didn't put it out to bid because the HCD proposal made the most sense."

Pat Thompson, owner of Sisters Rental and a city council candidate, wanted to know more about the leasing arrangement.

"Is there more city property available for leasing?" he asked. "You're competing with private industrial land that's available for leasing."

Mayor Boyd said, "No, the city is not competing. High Country Disposal is an existing franchisee going into a franchise agreement with the city."