Members of the Hermiston Kiwanis Club unload refuse from a pickup into a dumpster on March 29, 2017, off of Northeast Theater Lane in Hermiston. The garbage collection rates in Hermiston are increasing 37% come April 1, 2024.

HERMISTON — Hermiston residents will pay 37% more each month for garbage service beginning April 1.

The Hermiston City Council on Monday, March 11, voted to approve a rate hike request by Waste Connections Inc. Beginning April 1, residential customers with 90-gallon cans will pay $29.05 per month, an increase of $7.92 over the current rate of $21.13. Residential customers with 35-gallon cans will pay $17.46, an increase of $4.76 over the current rate of $12.70. Commercial customers will pay $120.82 per month, an increase of $32.95 over the current rate of $87.87.

WCI purchased Sanitary Disposal Inc., a locally owned business, two years ago. It continues to do business in Hermiston as SDI. Hermiston Assistant City Manager Mark Morgan said the previous owner got out of the business due to the “increasingly complex, volatile and expensive nature of the industry.”

Morgan said WCI chose to operate for the past couple of years before assessing any rate changes to determine the actual cost of doing business.

The main factor in the rate increase request is aging equipment that needs to be replaced, he said. SDI indicated the age of its fleet of trucks is nearly 30 years old. Kevin Miracle, district manager for SDI, said a typical truck has a lifespan of about 10 years.

Morgan said a fleet of aging trucks leads to down time due to breakdowns, which means increased maintenance costs. Finding replacement parts for 30-year-old vehicles also is becoming more difficult and expensive, he said. SDI also faces higher wage demands from the labor market.

According to Morgan, the new rates are comparable to nearby cities. Pendleton residential customers with 35-gallon cans pay $16.75 while those with 90-gallon cans pay $33.60. Pilot Rock residential customers pay $23.25 and $43.25, respectively. Commercial customers in Pendleton pay $124.92, and in Pilot Rock they pay $127.75.

Miracle said the rate adjustments will put the company on sound financial footing going forward.

“The increase is large, but it will get us where we need to be,” he said.

Beginning next year, Miracle said, SDI will use the consumer price index to determine rate adjustments. He estimated that next year, the rate increase would likely be 3%.

Councilor Nancy Peterson pointed out the city has a program for reduced residential rates for senior citizens that is underutilized.

Morgan said it is anticipated the new rates will increase the revenue to the city’s general fund by approximately $180,000 per year.