Rising fuel costs affecting garbage rates

Rising fuel costs affecting garbage rates


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SALT LAKE CITY (AP) -- The rising cost of oil is making is pushing up the cost of running the average family home and that includes hauling away the trash.

With diesel fuel prices in Utah topping $4.76, garbage companies are feeling a pinch at the pump and are passing that on to it municipal customers.

Some Utah cities have already raised garbage pickup fees to keep up, while other communities are expected to raise rates sometime in the next year.

Most cities sign multiyear contracts with private companies to pick up garbage from resident's homes. The contracts typically include fuel surcharges, so when prices rise or fall, so does the surcharge, said Susan Hayward, spokeswoman for Waste Management, the largest garbage collection company in northern Utah.

Waste Management, which serves nearly two dozen Utah cities, uses a calculation tied to the national average for diesel fuel, which is reported weekly by the Energy Information Administration, Hayward said. The average garbage trucks burns 110,000 gallons of fuel each month.

"Rising fuel prices are a huge impact," said Hayward. "We're looking at ways to be more efficient."

Sanitation services run by cities and districts are also looking for economies, whether through better use of trucks or other alternatives. Salt Lake City garbage trucks collect 48,500 containers of garbage over each five-day week. Routes covered 585 miles and trucks get just 2.5 miles per gallon of fuel.

Salt Lake City's 2008-2009 budget includes a statement of intent to reduce fuel consumption. Mayor Ralph Becker has asked city department heads to outline their plans in a report.

"It was a massive issue in this budget process," said Shiela Yorkin, spokeswoman for public services. "It's something we're going to be taking a really close look at and creating some more concrete strategies over the next couple of weeks."

Information from: Deseret Morning News

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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