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Wednesday, 30 July 2008 00:57

ACES Asks For Another Rate Increase

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slide16.pngAlso at the meeting, Paul Molinelli Senior of ACES Waste Services proposed a rate increase of 10 percent based on the extraordinary rise in fuel costs over the past 6 months. The cost of diesel fuel has increased from approximately 3.45 dollars per gallon on January 1st of this year to a peak of 5.03 dollars per gallon this month. Although the price has decreased slightly in the past week, it is still much higher than it was at the beginning of the year. If approved, this would be the second rate adjustment for ACES in the past 12 months, which deviates from the franchise agreement between the City and ACES that allows for one increase per year. “The cost of fuel never seems to stop increasing, and ACES can no longer absorb the cost increases,” said Molinelli.

He also reminded the council that the cost of fuel was not the only increase plaguing him, but also the cost of tires, tubing, and other items frequently utilized by the company. Emergency cost cutting measures have been instated because of the rising costs and the decreasing total revenues. These cuts include: no longer providing uniforms for employees, waiving pay increases, and installing shut off devices on vehicles. Councilman Wayne Garibaldi stated that “as difficult as [increases are] this is probably still a pretty good deal, and it is one that I can support.” Questions regarding the legality of the increase were raised at the meeting, but were met with very little opposition as this is considered more of an emergency need.

A notice from ACES to its customers informing them of the impending increase will be required 30 days before the increase becomes effective. During public comment, Marilyn Lewis, a Jackson resident, stated that “ACES saved our butts and the County’s too,” recalling past issues regarding recycling and state mandates. A motion was proposed directing staff to prepare a resolution to be signed at the next City Council meeting, and an interim rate increase was approved unanimously.

Read 722 times Last modified on Wednesday, 19 August 2009 01:56