City of Derby News Release
City of Derby Stands By Trash Decision
June 11, 2009
In response to the May 27 report by the Derby Weekly Informer that Derby Disposal owner Everett Reese is circulating a petition to force the Derby City Council to either repeal a recently adopted ordinance (#1980) requiring a franchise for residential refuse collection, or hold a special election, the City makes the following statement:
The authority for the petition (K.S.A. 12-3013) is not applicable to administrative ordinances. City Ordinance #1980 is an administrative ordinance.
If this business owner whose proposal was unsuccessful in the City’s competitive process gets the required 356 valid signatures (as certified by the Sedgwick County Election Commissioner), the City will likely determine the petition invalid under state law and file suit in district court.
“Asking the court for a declaratory judgment will be the best, most expedient way to resolve the matter,” said Kathy Sexton, City Manager. “The residents of Derby will save money under this new program, and they’ll get a quality curbside recycling program.”
Under the new franchise system, nearly all residents of Derby will save money on their trash bills. Rates, which also include recycling service, will drop to $38 or $44 per quarter. Currently, under the non-franchised system, residents pay $63-$83 per quarter for trash only. Other residents in Homeowners Associations that have negotiated rates currently pay $37-$48 per quarter for trash only.
All residents will get more services for the amount of money they pay. A biweekly recycling program will be available to residents for no additional cost, if they so choose to recycle. In addition, some small businesses will save on their trash bills.
“If the petition were valid, the City would gladly hold an election,” said Sexton. “With nearly all residents benefiting financially from this new program, I have no doubt that the plan would win voter approval. The City should not, however, bear the cost of an election if state law does not require one.”
Nearly a year ago, the City notified trash haulers of its intention to change to a franchise system in 2009. All companies were given an opportunity to submit a competitive proposal to do business in Derby. Only three companies responded, and one of those later withdrew.
A franchise system does not eliminate competition. It only changes the nature of competition by the City periodically having a competitive process to select one hauler for the entire city, rather than each customer having a daily ability to switch to another hauler. Like other utilities, trash collection involves some fixed costs. It is important to spread those costs broadly across the geographic area served in order to keep rates down for everyone. Key components of this competition are keeping costs down for everyone, reducing truck traffic on residential streets (which reduces taxpayer-funded street maintenance costs), and ensuring quality customer service.
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