Kalispell's solid waste service growing
Kalispell continues to expand its solid waste services into new areas along existing routes after changes in Montana law a couple years ago made that easier to do.
That means more customers and revenue and more efficient use of the city’s operators and garbage trucks. But it also means some concerns for Evergreen Disposal, a private collection company that typically loses any customers the city gains.
Over the last two years, Kalispell targeted 386 new residential customers in five areas: Northern Lights Boulevard, southwest Kalispell, Northland subdivision, Ashley Park and Stratford Village.
Almost 150 of the targeted households in those areas have signed up for Kalispell’s significantly cheaper collection service.
Residential customers and smaller commercial customers are served by the city’s four sidearm trucks — one of which will be budgeted for replacement in fiscal year 2013-14 after an eight-year service life.
Kalispell also added 67 of its 88 commercial customers during the last two years. Most of those accounts are around the hospital or school or county facilities. The city’s rates for commercial customers also are lower than Evergreen Disposal’s.
A solid waste business plan that will be updated each year has Kalispell targeting another 500 to 600 new residential customers in Willow Glen, the Willows, Leisure Heights and neighborhoods along Whitefish Stage Road in 2013 and spending $20,000 to buy more containers, Public Works Director Susie Turner told the City Council on Monday.
“We looked at our routes and staff and the service areas where we could expand without adding fleet or personnel. Our goal was to make service available to citizens who wanted it in Kalispell,” Turner said of the targeted expansions.
The city does not plan to go after more commercial customers. “We are nearing our capacity. We only have two rear loaders and we really can’t go above and beyond what we’re doing without adding staff or equipment,” Turner said.
Public works staffers plan to review Kalispell’s commercial rates this year and possibly eliminate large discounts that are offered for second and third collections each week.
“I don’t know how those rates were developed,” Turner told the council. “It costs us the same per trip to serve them one, two or three times a week. So we’d recommend a structured rate where if we serve them two times a week it’s double the one time, and if three times a week, then triple the one time.”
That would significantly increase the cost of the city’s two- and three-times-a-week commercial collection service.
Mayor Tammi Fisher asked representatives from Evergreen Disposal if the city’s expansions are making life hard for them.
Josh Brown, the district manager for Evergreen Disposal, said commercial account losses have the biggest impact on the company’s bottom line. But Kalispell’s residential expansions also have city garbage trucks crossing paths with Evergreen trucks and taking away customers.
With the city’s tighter collection area, denser routes and significantly lower rates, it can be “very difficult to compete” when customers are given a choice between the two services, Brown said.
“We do have concerns over this expansion,” he said. “It will have a big impact on our business, revenue and operationally, affecting routes and our employees’ livelihood in the long run.”
Fisher, who leaves office at the end of the year, said she “philosophically” would like to see Kalispell consider dropping all of its commercial accounts as its two rear loaders age and go out of service to keep the public sector from competing with the private sector.
“If we continue to look at residential service expansion, and if we can make this enterprise fund maintain solvency long-term, I would like the council to consider dropping the commercial. And with the [commercial] rate adjustment I think we will increase the competitiveness of the private sector. I like that,” Fisher said.
Reporter Tom Lotshaw may be reached at 758-4483 or by email at tlotshaw@dailyinterlake.com.