By Sara Quam
Luverne's garbage collection policies could change after council discussions at the June 12 City Council meeting.
Bill Ketterling of Ketterling Services Inc., Luverne, recently asked the council pointed questions about policies he says are stunting his business growth.
Ketterling said there are services he can provide (and used to provide) that the city has taken over.
The council will review two different ordinance options at its meeting. The differences that will be discussed are whether Ketterling should be able to take over pickup for churches, retirement homes, homes for the elderly and hospice facilities.
If the city loses those specific contracts, Public Works Director Darrell Huiskes said, "We would stand to lose over $25,000 in revenue."
Losing the revenue from refuse collection would effect the city's general fund because about $30,000 a year is put in that fund from collections. It all helps keep taxes down Huiskes said.
"I have an obligation to our citizens. After all, they own this utility. I have a responsibility to them to look at our potential revenue shortfalls and consider all options," Huiskes said. He added that the city tries to provide the best possible service at the least costly price.
Ketterling said of the ordinances on the table, "I don't think either will stand, as is. I think we need to sit down and amend them so it's fair."
Ketterling currently does commercial garbage pickup, handles recycling contracts for the county and county cities and hauls between the Rock County Transfer Station and the Lyon County Regional Landfill.
All garbage is essentially county business in the end. Rock County transports municipal solid waste (standard garbage) to the Lyon County Regional Landfill, and Rock County, in turn, receives demolition materials from there.
Each is transported by Ketterling for a base fee per trip that was increased for 2001.
Hauling between landfills accounted for $37,274 in payments from the county to Ketterling in 2000. That contract is separate from recycling or other collection contracts.
Ketterling uses the Lyon County landfill for his business's municipal solid waste disposal while the city of Luverne uses the Rock County landfill as a measure of local support.
Residential collection
Neither versions of the new garbage collection ordinance before the council would allow Ketterling to be involved in residential pickup, though he still sees it as an issue.
The city has complete control over residential buildings, including apartments, in Luverne. But because apartments are a business that happens to be a residential property, Ketterling sees a gray area where he should be able to do some pickups.
"I would like the opportunity to provide that service," Ketterling said. "I can't see why the city is concerned. I generate a lot of revenue in the city."
Councilman Keith Erickson said he's given the matter some thought. "I would like to see the city deal with things that are residential. Where people are living on a regular basis, it should stay with the city."
Erickson further reasoned that opening apartments to Ketterling would leave home rentals and duplexes up in the air, confusing routes and policy for years to come. "Do we count a six-plex? I mean, where do we draw the line?"
Rental property owner Mike Jarchow suspects his properties would save money using Ketterling, who charges on volume rather than apartment units.
Jarchow said the city charges a $12.50 monthly residential garbage fee for each apartment unit, even though the city makes only one stop per building.
Other issues
The garbage pickup issue was brought to the council by Mayor Glen Gust on behalf of Ketterling.
Last April the council finalized the current garbage collection policy.
City Administrator Matt Hylen said, "It was agreed on between Darrell Huiskes [public works director], Ketterling, and the city - private and public were satisfied. The council has decided to revisit it a year later."
The issue comes up just a year after the city spent $105,000 on a new garbage truck and $101,000 on new receptacles.
Hylen wouldn't comment on whether employees in the public works department could be eliminated if they lose collection stops on their routes.
Ketterling said he hasn't been completely satisfied with the current system, even after last year's discussions. He said he just wants to fairly compete as a businessman in his field - garbage collection. That's why he asked for a few issues to be addressed.
Ketterling wanted to know why Schoneman Park is a city contract, why other county buildings are the city's responsibility, why the city picks up church sites and why Blue Mound Liquor is a city stop.
Churches are charged the same as residential fees, as is Schonemen Park.
Ketterling's question on Blue Mound Liquor was answered by Hylen, who said it is a governmental operation that does not operate to make a profit.
"Any excess revenue generated by the liquor store is paid to the general fund to reduce the need for taxes," Hylen said.
The council's discussion June 12 will likely result in a decision on which version of the ordinance the city will adopt.