The North Central Solid Waste Authority board of directors passed a $1.50 monthly trash rate increase for Española residents after the manager of the Authority laid out an indicting case against the city, stating city leaders were taking advantage of Rio Arriba County and playing an accounting “shell game.”
The $1.50 monthly increase was approved 2-0 last week after Española’s representative to the Authority board, Pedro Valdez, called for delays and ultimately abstained from the vote.
The Authority board last month voted unanimously to table a proposal to raise city residential trash rates by $3 a month after city leaders objected, stating the proposed rate hike was “too much, too quickly.”
Valdez again asked the Authority board at its Aug. 21 meeting to table the proposal.
The rate increase takes effect Sept. 1, although the resolution states the residential rate increases billed to the city may or may not be passed along in full to Española residents. The city of Española collects residential and commercial trash fees on the Authority’s behalf.
Authority Manager Gino Romero, however, pushed the Authority board last week to implement immediate residential rate increases in Española.
“Without this, I don’t see how this Board can move forward,” Romero said. “We need immediate funding.”
Valdez suggested incrementally raising city rates by 45 cents a year for five years.
Romero responded that was insufficient.
“Fifty cents is not something North Central or I can live with,” Romero said, adding residential trash rates in Española have not increased for several years.
Romero said Rio Arriba County is providing the Authority a subsidy of $700,000 in the 2013-14 fiscal year that began July 1. The County provided the Authority a $600,000 subsidy in the 2012-13 fiscal year.
The city of Española provided the Authority a subsidy of $100,000 in 2012-13, but deducted more than half of the subsidy, $53,530, for administrative fees to bill the city’s 3,461 solid waste customers, as of the end of June. The city collected nearly $599,000 in residential solid waste fees in 2012-13.
Española is providing another $100,000 subsidy for the 2013-14 fiscal year.
Ohkay Owingeh and Santa Clara are the other two Authority partners in addition to the County and city of Española. Neither pueblo provides subsidies to the Authority.
Romero criticized Española’s administrative fees, calling them a “shell game.” The city charges an administrative fee of 60 cents per customer, and it also collects a 5 percent administrative fee of invoices, Romero said.
Romero said he has asked city leaders to remove the administrative fees, to no avail.
“I feel the city has taken advantage of us for quite some time,” Romero said. “I cannot even get a reprint from the city of who has an account (in the city). You enjoy, probably, the cheapest prices in Northern New Mexico.”
Romero noted garbage rates are considerably lower in Española than in nearby Los Alamos, for example.
Weekly curbside residential trash pickup in Los Alamos County is $18.15 a month, a Los Alamos County official said. The rate includes recycling, she said.
Española residents are currently billed $14.96 a month by the city for residential trash pick-up. That rate does not include the rate increase approved by the Authority board last week. The city includes trash fees with city water and sewer bills.
County residents, all those residing outside the County’s two incorporated municipalities of Española and Chama, are currently charged $17.10 a month by the Authority for weekly residential trash service.
Chama residents are charged $16.75 a month.
Romero also said, as he has said at several recent Authority board meetings, that city officials are not enforcing a franchise agreement that requires businesses in the city to have commercial solid waste accounts with the Authority. Romero said several businesses in Española lack accounts with the Authority.
“I feel frustrated with the city that they are real partners,” Romero said. “They need to remove their administrative fees and pay what is rightfully fair. We get no cooperation from the city, in any way, shape or form.”
Valdez said he would meet with Mayor Alice Lucero and interim city manager Joe Duran to discuss the issues raised by Romero. Valdez suggested the Authority take over the billing for city trash customers.
Rio Arriba County Manager Tomas Campos, the County’s representative to the Authority board, suggested a compromise increase of $1 a month for city residents.
Valdez again asked for time to review the joint powers agreement that defines the relationship among the Authority’s four partners — Rio Arriba County, Española, Ohkay Owingeh and Santa Clara pueblo.
“I think it’s up to the (Authority) board,” Campos said.
Valdez again asked for time to review the joint powers agreement.
Romero said a $1 a month increase was insufficient and he asked for a $2 month increase in city rates.
Valdez said he would abstain from the vote and see if the Authority may unilaterally raise the city’s rates.
“We’ve put this off for a month,” Romero said. “We need money to cover equipment and expenses.”
Campos then suggested a $1.50 a month increase in city rates as a compromise.
“I understand where you’re coming from,” said Virgil Cata, Ohkay Owingeh’s representative to the Authority board. The Santa Clara pueblo did not have a representative at last week’s meeting.
“Initially, we need a shot in the arm,” Romero said.
Valdez made a final attempt to limit the rate increase to 45 cents a year for five years.
Romero countered by suggesting a $3 a month immediate increase.
Cata motioned to pass a $1.50 a month increase and Campos seconded the motion, which passed 2-0. Valdez abstained from the vote.
Española City Clerk Tessa Jo Mascareñas said the residential rate increase would be reported to the city council Tuesday night. She said the trash rate increase is not on the city council’s agenda, and therefore would not be acted upon Tuesday by the council.
Back audits
In other news, Authority financial consultant Rick Sandoval reported work continues getting the Authority up to date with its financial audits.
“The goal is to be able to get at least three years of audits done before the end of the calendar year, while we’ll continue working on the next three years,” Sandoval said.
Sandoval said auditors are working the back years in two batches. He said the Authority’s audits for the 2006-07, 2007-08 and 2008-09 fiscal years should be completed by December. He said audits for the 2009-10, 2010-11 and 2011-12 fiscal years should proceed more quickly when the initial batch is completed.
“The years that go through ‘07-’09 are a little more difficult getting records on,” Sandoval said.
He said the Authority’s last financial audit, for the 2005-06 fiscal year, was completed in 2010. Sandoval said he had questions on whether the Authority should have to perform its own audits since it is an entity created by Española and Rio Arriba County, which perform their own public audits, and the two pueblos.
Romero noted the County is the fiscal agent for the Authority. He said it would make sense in the future if the Authority were included in the County’s annual audits.
“We can’t apply for loans on our own, because our audits aren’t up to date,” Romero said. “We know there are going to be findings, so that’s why it’s important to get these audits done so that we can address those issues.”