Islamorada council turns down rate increase for commercial pickups

An Advanced Disposal truck empties a Dumpster. Logos on trucks will be replaced as Waste Management takes over. KEYS WEEKLY FILE PHOTO

A proposed rate increase in commercial garbage pickup requested by the village’s provider was voted down by the dais following lengthy conversation at a July 22 meeting. Council members also didn’t agree with the company’s request for an earlier start time for commercial collection, but they did find some middle ground. 

Advanced Disposal, which was taken over by Waste Management last October, requested village officials in May to amend an agreement for a 7% rate increase for commercial collection. Requests were also made for use of the consumer price index for trash services and to allow garbage trucks to get on the road as early as 5 a.m.

Issues surrounding Advanced Waste Disposal date back to July 2020, as then-council members discussed missed pickups and bins being left by the road for days. Advance Disposal provides trash, recycling and yard waste collection and disposal services for all residential and commercial properties in Islamorada through a contract with the village, which has been in place for several years. That contract is valued at more than $4.5 million.

Village Manager Greg Oravec told the dais that no specific evidence was provided that justified raising commercial rates. He said the contract as written provides annual increases of 3% based on the consumer price index. Increasing rates would result in franchise fees that the village receives on commercial collections, and that’s around $600,000. 

“We have a contract that goes through 2023. Waste Management acquired Advanced Disposal knowing what the contract was,” Oravec said. “The contract provides for a CPI annual adjustment, but no more than 3%. Therefore, they’re going to get a 3% increase already without action.”

While voicing objection to the increase, Councilman David Webb said the islands don’t have 50 vendors vying for Islamorada’s business. 

“The service is generally very, very good. I’ve had that service in Port Antigua since I moved down here in 2013,” he said. “There are things that can be improved as always, but generally the trash gets picked up.”

Webb asked if there was any justification for the commercial rate hike. Greg Sullivan, local manager with Waste Management, said he’s facing labor issues.

“I don’t know where all the workers went but they’re gone,” he said. “When we took over, we instituted a housing allowance program. It doesn’t matter if folks come from the Homestead area. …  We are fortunate to have some live in the Keys. It’s to help offset that.”

Increased prices for steel were also acknowledged. Sullivan said he could buy Dumpsters a year ago for roughly $340. Today, that price tag is $600. 

“Steel prices just went up 68% in the last 10 months,” Sullivan said. “We’re locked into rates set by the village. Any other business, if contractors, restaurant or private provide for dumpsters, that market is wide open. They can adjust rates every day if they want to or need to.”

Councilman Mark Gregg acknowledged Waste Management’s $4-billion purchase to buy out what was the fourth-largest company in Advanced Disposal. 

“I have a hard time giving a company of that size a raise on the backs of ratepayers in Islamorada. I can’t do that.”

Council members agreed to allow garbage trucks to get on the road for commercial pickup at 6 a.m.

In other matters, village council members agreed to extend a wastewater code lien amnesty program by 60 more days to help 23 properties get connected to the sewer system. Oravec said he intends to meet with the remaining holdouts to advise the dais on their situations. Those who aren’t hooked up must have a permit by Oct. 31. Connection must be complete by Dec. 31. 

Council members approved a resolution to set a preliminary millage rate of 3.015 as they prepare for 2021-22 budget season. Oravec said he intends to propose a lower mileage rate as part of the proposed budget. Based on the 2021 valuations, the rolled-back rate is 2.849. A rate of 3.015 is 5.83% above the rolled-back rate.

The 2021 gross taxable value provided by the Monroe County Property Appraiser’s Office is $4,280,333,438. For purposes of calculating the rolled-back rate, an adjusted current year taxable value amounts to $4,221,442,364.

The first budget hearing is set for Sept. 3 at 5:30 p.m. at Founders Park Community Center. The final budget hearing is scheduled for Sept. 14 at 5:30 p.m.

Jim McCarthy is one of the many Western New Yorkers who escaped the snow and frigid temperatures for warm living by the water. A former crime & court reporter and city editor for two Western New York newspapers, Jim has been honing his craft since he graduated from St. Bonaventure University in 2014. In his 4-plus years in the Keys, Jim has enjoyed connecting with the community. “One of my college professors would always preach to be curious,” he said. “Behind every person is a story that’s unique to them, and one worth telling. As writers, we are the ones who paint the pictures in the readers minds of the emotions, the struggles and the triumphs.” Jim is past president of the Key Largo Sunset Rotary Club, which is composed of energetic members who serve the community’s youth and older populations. Jim is a sports fanatic who loves to watch football, hockey, mixed martial arts and golf. He also enjoys time with family and his new baby boy, Lucas, who arrived Oct. 4, 2022.