Fuel Issue Delays Hinsdale Trash Pact

HINSDALE, IL – The Hinsdale Village Board was set to vote this week on a three-year trash contract that included rate hikes that one official has called "steep."

But the process hit a snag over a provision that would increase rates further as fuel costs rise.

At a board meeting last month, trustees seemed agreeable to increasing Phoenix-based Republic Services' fees for 90 percent of residents. The price would go up by 4.3 percent annually for the next three years.

But on Tuesday, Village President Tom Cauley said he was troubled over a provision introduced in the last month related to diesel fuel.

Under the terms, residents would pay an extra nickel for every 10 cents that the price of diesel fuel increases. That clause would be triggered at $4.75 and could be carried out yearly, starting in October 2024.

On the flip side, the reverse would happen if the price dropped to $1.75, which trustees agreed would likely never happen in their lifetimes.

Cauley said $4.75 was not far above the current market price of around $4.50.

"I'm OK with an escalation clause if diesel prices go up, but I don't think it should be that close to the current market price," he said. "It should be something that nobody envisions. This is so close to market I don't think it's acceptable."

He also said the higher prices for diesel these days were likely figured into the rate increases.

Tish Powell, the municipal sales manager with Republic Services, noted the clause in the previous contract was at $4. She said her company never came back for a price increase, even though the price has been above $4 for a while.

Cauley asked, "Could I ask that you go back to your company and see if they could make it higher by 75 cents?"

"Or would you like to keep what's currently there?" she asked.

Cauley said he would not.

"It's so close to market that it's almost a freebie," he said.

Powell said she could ask whether her company would increase it to $5.25.

The board did not vote on the contract.

During an August board meeting, Cauley said he would like to go out to bid for the contract in three years. The village has contracted with Republic since 2007, with the current contract going back five years.

He said the village did not have enough time to go out to bid this time.

"A majority of residents will see an increase of $12 per year," Cauley said last month. "As an absolute amount, it's not that much... But I do think this is a rather steep increase."

The new contract would start Nov. 1.