Refuse hauling and recycling services fees will increase for Dublin during the next three years as a result of a new contract the city entered into with Rumpke Waste & Recycling.
Dublin pays the fees for refuse hauling and recycling, rather than residents receiving a bill for the services from Rumpke, said Lindsay Weisenauer, a Dublin public affairs officer.
A little more than 13,700 residential households receive the services, said Megan O'Callaghan, Dublin's director of public works.
This year, under the existing contract, the city pays Rumpke a little less than $2.7 million.
Dublin City Council authorized City Manager Dana McDaniel to enter into two separate agreements with Rumpke, an agreement for refuse collection services and an agreement for recycling services, O'Callaghan said.
All council members present Sept. 24 approved the agreements. Council member Jane Fox did not attend the meeting.
In 2019, the city will pay a little less than $2.75 million for refuse collection, transportation and delivery for disposal or processing of waste, recyling materials and yard waste generated by residential units, municipal facilities and during special events, Weisenauer said.
That number will increase to a little more than $2.9 million in 2020 and $3.1 million in 2021 for those services, Weisenauer said.
Beginning in 2020, the city could see extra costs for recycling processing fees.
According to a Sept. 20 memo from O'Callaghan to City Council members, Rumpke will split commodity profits from recycled materials evenly up to a $40 revenue price, meaning Dublin would receive $20 and Rumpke would receive $20 per ton of recycled material.
Rumpke would receive revenue in excess of $40.
If the processing costs are more expensive than the revenue received, Dublin would be required to pay 100 percent of the cost differential, up to a maximum of $35 per ton.
The annual cost to the city based on this risk-reward profit sharing form is impossible to forecast, Weisenauer said.
In 2020 and 2021, the city could receive as much as a $95,580 profit or pay a maximum of $172,500.
Recycling processing fees are affected by the level of contamination for processed materials and whether an end-user for the materials can be secured, said Gayane Makaryan, a communications manager for Rumpke.
Processed materials can be contaminated when people put nonrecyclable items, such as plastic bags and batteries, in bins, she said.
Those items cause a lengthier process to sort and remove the contamination, she said.