Piqua City Commission to Discuss Santiation Rate Increase
Higher rates are in response to last week's votes on keeping Sanitation Services In-house
For months, the City of Piqua has been working on a long-term solution to the city’s sanitation services. Last week, the Piqua City Commission, by a 3-2 vote, turned down a proposal to have trash services outsources, which would have been cheaper alternative than keeping the service in-house. The Commission, largely working on the desires of the community, wanted to keep the service in house, believing that service levels would be more responsive. This publication talked about that decision last week:
Well the other part of that service discussion will be held Tuesday night; how will the city pay for keeping this service in house? City staff is proposing rate increases for santiation services. The journey to these new rates began in September 2024 when the city administration presented a white paper outlining the issues facing the Sanitation Services division.
Key concerns included staffing problems, equipment costs, rate structures, liability issues, and rising operational expenses. The City’s santation efforts, which provides weekly collection of household solid waste, recycling, and bulk items, had been struggling with high employee turnover, difficulties in recruitment, and increasing costs for vehicle maintenance and replacement.
Initially, the city explored various options, including rate adjustments, service reductions, staffing model updates, and the possibility of contracting out services. After careful consideration and multiple discussions with the City Commission, a decision was made to pursue contracted services. This decision was driven by the potential for cost savings and the transfer of operational risks to a third-party provider.
However, last week, the City Commission rejected the proposed contract for outsourced sanitation services by a 3-2 vote, broadly reflecting the community’s desire to keep this service in house. This decision necessitated a swift pivot back to in-house operations, but with significant changes to address the ongoing challenges.
The new sanitation rates, effective from 2025, reflect the city's need to cover increased operational costs while maintaining service quality. The proposed ordinance will change base sanitation rates (to cover one cart for solid waste and one cart for recycling) to $31.33 per month in 2025, to $40.73 in 2026 to $48.88 in 2027. These increases are a direct response to several factors:
Firstly, the cost of disposal is set to increase significantly over the next three years due to adjustments at the Miami County Transfer Station. The tipping fee rates are increasing from $58.80 per ton to $69.80 per ton, resulting in an 18% increase in disposal costs for the city.
Secondly, the city needs to address its aging fleet of sanitation vehicles. The cost of new vehicles has skyrocketed, with a rear load packer truck now costing $263,000, up from $124,000 in 2017. Similarly, an automated side-arm truck is now quoted at $375,000, compared to $290,000 just two years ago. These increased equipment costs necessitate higher rates to fund vehicle replacements and repairs.
Thirdly, the city is facing ongoing staffing challenges. The sanitation division has experienced a 71% turnover rate over the past two years, leading to constant training needs and operational inefficiencies. To attract and retain qualified employees, the city may need to offer more competitive wages and benefits, which contributes to the need for higher rates.
Despite these significant increases, it's worth noting that Piqua's new rates remain competitive when compared to other cities in the Miami Valley Risk Management Association (MVRMA). This association, which addresses risk management for property and casualty exposures, includes 21 member cities in Southwest Ohio. Many of these cities also provide in-house sanitation services and face similar challenges.
The decision to maintain in-house operations, rather than contracting out services, allows the city to retain control over service quality and rate structures. However, it also means that Piqua must continue to address the challenges of employee recruitment and retention, vehicle maintenance and replacement, and rising operational costs internally. More fundamentally, the same Commission that voted against outsourcing the service are in a position where they will now need to vote to increase fees to cover the more expensive in-house option; not exactly an easy place for any elected official to be.
Looking ahead, the city administration has indicated that these new rates should provide stability for the next 3-5 years. However, they have also cautioned that larger rate increases may be necessary over the next 5-7 years to keep pace with rising costs and maintain service quality.
For Piqua residents, these rate increases mean higher monthly bills for sanitation services. However, the city argues that these increases are necessary to maintain the level of service that residents expect and to ensure the long-term sustainability of the sanitation division.
The new sanitation rates in Piqua reflect the complex challenges facing municipal waste management services. While the rate increases may be significant, they represent a necessary step to address rising costs, maintain service quality, and ensure the long-term viability of the city's sanitation services. As the situation continues to evolve, city officials will likely need to maintain open communication with residents about the costs and benefits of maintaining these essential services in-house.
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