At the September 6 meeting, the Rushford Village Council heard details of offers for garbage and recycling collection contract extensions. Jeff Holmquist, sales manager for Harter’s Quick Clean-Up, was on hand to discuss the options.
As the current contract will expire in February 2023, the village wanted to explore the option of no longer owning the rolling carts as a way to reduce costs. Harter’s had cautioned the city that a contract extension would likely be cheaper than going out for bids and offered a five-year extension, beginning March 1.
The cost for totes would vary depending on size, but the new rate savings for non-owned totes ranged from $0.54 to $0.57/month per stop. A Consumer Price Index (CPI) increase of 8% will apply to current service rates at the start of the extension. Current CPI is at a record high of 10.1% Holmquist noted the CPI on the extension would be subject to annual change but hoped it would be 6% or less in time.
“It’s bizarre times for us,” admitted Holmquist. “I’m trying to keep your costs as low as possible here. If you put it out for bid, I know our number is going to go up. I like to think we do a good job of servicing you,” he added.
The council debated the options and reviewed the service provided. “You know what you’re getting with Harter’s,” noted Councilor Roger Knutson.
“A lot of communities in the areas are doing upgrades right now and no one’s getting cheaper,” added Councilor Mike Ebner.
The only complaints lodged during the conversation included truck drivers not wanting to pick up in rural areas if gravel roads are icy and garbage from the back of trucks scattered around some rural areas. “We do have a unique route,” acknowledged Mayor Dennis Overland.
The council approved the contract extension. Carts that need repair will be replaced. “Prices are going up and it’s taking longer to get them. It’s helpless, but some things are getting better,” he continued. “The hard part about this area is that it’s so rural and they take a beating in the wind and so on.”
The village currently does not bill residents directly, but pays for the service via annual property tax collection. It provides increase notices to residents within city budget information. The city currently pays Harter’s approximately $72,000 annually, but that number will be closer to $80,000 in 2023.
The new contract plays into the city’s financial planning for 2023. Discussion included current fund and Certificate of Deposit (CD) balances, proposed projects, and equipment upgrades for roads and public works. Fund balances include $91,400 from American Rescue Plan funds earmarked for upgrading water meters and $228,000 from the Minnesota Investment Fund (MIF). MIF funds are used as gap financing or community development, but must need approval by the Department of Employment and Economic Development (DEED). The sewer and water enterprise funds are at $96,700 and $111,000, while the general fund currently holds $306,000 in CDs.
The proposed budget for 2023 is $678,419 for 2023. The village is considering adding water and heat to the public works building to accommodate a future wash bay to add longevity to equipment, and other upgrades. The total project is $36,000. Updating the village road truck is also under consideration as the current truck is nearing its usable life. Continuing road work on County Line Drive erosion and ditch work, reclaiming, and new gravel in rural areas is in planning.
“That’s our main business: roads,” said Councilor Roger Knuston. “We need good, quality equipment. We can’t nickel and dime it all the time. If we’re levying for it and putting it away, why aren’t we using that money?”
Councilor Rick Ruberg expressed particular frustration with the gravel roads. “We’re starting to have problems with some of the roads,” he said. “I’m just getting kind of tired of it. The roads have gone backward. Here we’re spending all kinds of money putting in gravel and part of it is going into the ditches because the roads aren’t being taken care of.” Ruberg noted the problem didn’t start with the current Public Works staff but that it’s been “neglected” and “gradually building” since the departure of former supervisor Bob Theriet in 2015. “We spend thousands of dollars on roads and the gravel roads get neglected.”
“It’s all something that comes in time,” responded Public Works Supervisor Trenten Chiglo. “We’ve done 75% of the problems with the roads. You can see there’s been obvious ditch work on all of them. We moved loads of dirt to get water off the roads. Those other roads are still up and coming.”
Chiglo noted that a recurrent problem with Airport Road, near the City of Peterson, is the presence of a gas line in one ditch, at an unknown depth but expected at less than a foot deep in spots. “I’d rather deal with a rough road than an exposed pipeline,” added Chiglo. The village will do a depth locate on the gas line and contact Peterson’s Public Works, responsible for the far south end of the road. Chiglo noted there is no written arrangement with the city, which has no grading equipment.
The village council did vote to move ahead with putting a waterline to the maintenance shed. Using directional drilling will avoid disturbing the asphalt roadway and utilities. STS Plumbing and Heating will do the work, estimated at $6,625.
The next regularly scheduled council meeting is Tuesday, September 20, at 7 p.m., at the Village Hall. The public is encouraged to attend.
Leave a Reply