The Atlantic City Council meets this (Wednesday) evening at 5:30 in their Chambers at City Hall. During his presentation to the Council, City Administrator John Lund will report on a proposed Mandatory Garbage pickup to help offset costly issues at the Cass County Landfill. Lund says the original proposal made in August of 1997, was updated for tonight’s meeting. The City is not currently involved rate regulation or collection. Those rates are set by one of the three available private sanitation companies operating in town.

In 1997, it was suggested anywhere from 70-to 80-percent of households in Atlantic pay for garbage collection, with others taking their refuse directly to the landfill, and still others sharing a bill with their neighbors, dumping refuse in a commercial dumpster, or illegally disposing of garbage. The current proposal calls for the sanitation companies to remain independent businesses and existing customers would remain with them. The City would assume the role of fiscal agent, and AMU would manage billing and payments. New customers would be assigned to a hauler.

Mandatory collection was deemed desirable in the 1997 report, because less staff time would be spent dealing with nuisance properties with regard to junk and garbage, with better results. There was also a theory collection costs would decline because the costs would be spread over a wider customer base. In his report, however, John Lund says implementing a Mandatory garbage service has many negatives, including: the elimination of free-market competition and issues regarding any complaints filed by customers; The City would have no direct control over business costs or expectations; and it could result in disputes between the City Council/Administration and the three private businesses, along with overpriced service.

Lund says AMU officials have said they are not eager to participate in being part of the billing and surcharge process. And, if the system is to be fair to all customers, there would have to be a slight adjustment in the rates the three in-town sanitation services charge. Lund says a regular account would have to be charged $24.50, and Senior Citizen accounts $17.50. That means a slight loss in profits for one provider and a slight gain for the other two. Lund says “the haulers can’t stay in business with the proposed pricing system, and the most likely pricing structure would resemble that of Cherokee, which charges $30 across the board, and no Senior discounts.

He notes that Tommy Gaines, with Gaines Sanitation, has proposed that since the issue lies with rental houses, and when the City institutes its landlord inspection system, it could require those landlords provide proof of a garbage contracting service with one of the three haulers. That alternative, Lund says, possesses none of the risks of mandatory garbage service and should help the City address the core problem without the need to be integrated into the current, and well functioning private sector model for solid waste removal.

He concludes in his report, that Mr. Gaines’ proposal will cause no increase in the costs to residents and should address the problem of solid waste in alleys and elsewhere, that the Council wants to see resolved. No action is expected on the matter during tonight’s meeting.