CRESWELL – The Creswell City Council on Monday night gave a nod of approval for City Manager Vincent Martorello to cut ties with Lane County regarding solid waste fees and terminate an intergovernmental agreement between the two.
Lane County and Sanipac are currently engaged in ongoing negotiations regarding the System Benefit Fee (SBF). The County has requested that Creswell postpone any action on terminating the IGA until those negotiations conclude. The City has communicated to both parties that Creswell does not wish to be placed in the middle of these negotiations or be subject to an uncertain timeline, according to Martorello’s memo for Monday night’s meeting.
As reported in a Feb. 5 Chronicle article, during a January work session, Martorello outlined the stakes of the county’s SBF and its interaction with Creswell’s contract hauler, Sanipac. “Sanipac had been hauling Creswell’s garbage to Dry Creek in Medford to save money, but after learning of the IGA and Lane County’s authority under its code, the company shifted back to Short Mountain Landfill, just outside of Creswell.”
Sanipac has been absorbing the SBF; however, it recently indicated that it will no longer absorb the additional cost associated with the SBF if the company continues hauling to Short Mountain. Customer rates will be affected if those costs are passed through.
Sanipac estimates that potential impacts to residential rates would increase by approximately 4%. This would be in addition to yearly increases.
The council was presented with three options: postpone termination of the agreement to allow additional time for Lane County and Sanipac to negotiate a resolution while Sanipac continues hauling to Short Mountain, request that Sanipac continue hauling to Short Mountain while deferring any SBF-related cost increases to Creswell customers until negotiations between Lane County and Sanipac are complete, or terminate the IGA and allow Sanipac to haul waste to its Dry Creek facility near Medford.
“The options are really to postpone the termination of the IGA or to terminate it,” Martorello said.
Without any definitive parameters, Lane County is mentioning some outcomes, such as the closures of transfer stations and narrowing of programs, because SBF pays for them, Martorello said.
“I feel they’re trying to use this IGA and put it over heads to see what could happen, and kind of try and intimidate because that’s how I feel,” said Mayor Nick Smith.
Council President Alonzo Costilla asked whether Sanipac has indicated whether the city will eventually have to pay any of the costs the hauler has been absorbing.
“They haven’t answered that question specifically the way that you’re asking me,” Martorello said. “They’ve talked about it being less expensive for them to haul it to Dry Creek because of the efficiency of their plant, and that’s including the travel. So based on that, my presumption would be no.”
“I find it very interesting that we have a situation where it’s actually cheaper for a hauler to take their garbage two hours south,” said councilor Staci Holt. “I think that’s kind of gross, actually. I mean, that’s really inefficient.”
Smith suggested that rates will increase regardless of the option the council decides.
“Everything’s going up regardless; we’re just trying to mitigate the damage. I mean, everything’s gonna go up three, four, or 5% on this, no matter what we do. But I think trust in the County in general is the wrong idea,” he said.
Council will vote to approve terminating the agreement at the next city council meeting on April 13.
