The Salem City Council has agreed to pay DBS Disposal the full one-dollar surcharge per household they were seeking due to rising costs. However, they elected not to make the full surcharge retroactive to March when the request was first made and will review its continuation at the end of September. The council had originally granted DBS a 50-cent surcharge as a compromise but the company indicated they might exercise their option to end the contract early without the full surcharge.
While most of the city council understood the rising costs, they and Mayor Nic Farley were concerned about agreeing to an increase while a contract is in place.
“I also don’t think it’s fair to other vendors but I also feel like we are over a barrel in the decision making process. But this will definitely be something when we do the next trash contract we really have to look at that language and make sure they are aware of that. Or do a smaller deal or shorter term so this doesn’t happen again. I really hate the precedent it sets.”
The council agreed not to pass along the increase to residents at least for now, although that will be part of the conversation in September if the surcharge is to continue. Even with the $1 increase, DBS is well below other bids received for trash collection. The contract will go out for bid next fall.
Meanwhile, Public Works Director Annette Sola warned the council trash collection wasn’t the only utility that was dealing with unexpected costs.
“It would be not necessarily an increase in the cost of materials but the transportation fees to get it there. Some of our chemicals at the water plant we are seeing $1000 increase per tanker load.”
And even though, the delivery was part of an earlier bid, companies are telling the city they can’t do business with them if they won’t pay the extra costs.
In other action, the city approved a $208,600 bid from Utility Safety and Design to replace gas lines in portions of Lakeview Estates, including Circle Drive and Lakeview Drive. The materials were purchased earlier.
The council moved forward on implementing a $250 per year terminal fee on all video gaming machines beginning in July 2023 expect those being operated by non-profit organizations.
The council agreed to continue to take a second position on a city loan to the American Legion as they get an additional loan from Marion County Savings Bank. They also agreed to allow the new owners of the Salem Holiday Inn Express and Suites to keep a business incentive agreement in place that gives the motel a 90-percent rebate of the local motel tax that is set to expire next year.
The council confirmed the appointment of Greg Jones to the Planning Commission, Jennifer Dice to the Library Board and Jason Smith to the Zoning Board of Appeals.
