GRATIOT COUNTY — Granger Waste Services, the trash hauler under residential contracts with St. Louis and Ithaca, has asked both cities to approve a temporary surcharge because of diesel prices. The St. Louis City Council approved it Oct. 20. A St. Louis agenda statement says the Alma City Commission approved the same provision Oct. 13, contingent on St. Louis’s approval. Ithaca’s council had the request on its Oct. 20 agenda; its minutes of that meeting are not yet posted.
The record at a glance
- Why: Granger’s letters say its contracts allow a surcharge when diesel stays above $4.00 a gallon for three straight months, subject to council approval. Granger says it is using $5.00 instead.
- The prices Granger cites: $5.417 a gallon in August and $6.351 in September (Midwest No. 2 diesel, retail).
- St. Louis: one cent per household per month for each 5 cents diesel costs above $5.00. At September’s price, Granger says that would be 27 cents per household.
- Ithaca: Granger’s letter to Ithaca puts the surcharge at 10 cents per household per month.
- How long: it ends when the monthly diesel price falls below $5.00, and could not return until diesel stays above $5.00 for another three months.
What Granger asked St. Louis for
Granger’s Oct. 8 letter to St. Louis (Oct. 20 packet, PDF p. 196) says it is the first time the company has asked for a fuel surcharge during the contract’s term, and that it chose the $5.00 benchmark “in an effort to lessen the impact on the municipality and its residents.” It calculates the charge at $0.01 per household for each $0.05 increase above $5.00 and gives an example: “Based on September’s rate, the surcharge would be $0.27 per household for the month.” If approved, the letter says, the surcharge “would first appear on the municipality’s invoice for November 2026 service using the October 2026 monthly rate,” and the amount “may increase or decrease from month to month as diesel costs fluctuate.”
City Manager Kurt Giles’s agenda statement (PDF p. 195) recommended approval “to share in cost of service increases due to fuel cost increases.” It lists the cost as budgeted, in the solid waste fund, with no budget amendment needed. Council Member Fares Azzam moved, Mayor Pro Tem Bill Leonard supported, and all members voted yes, according to the draft Oct. 20 minutes (Nov. 3 packet, PDF p. 5).
The St. Louis statement says Alma’s commission approved the provision Oct. 13, “contingent upon St. Louis City Council’s approval.” It does not say why Alma’s approval depended on St. Louis’s. We have not yet been able to read Alma’s Oct. 13 minutes.
What Granger asked Ithaca for
Granger’s Oct. 7 letter to Ithaca (Ithaca Oct. 20 packet, PDF pp. 64–65) uses much of the same wording and the same diesel prices, but cites “the Additional Fees section” of Ithaca’s agreement and says, “Under the terms of the agreement, the applicable fuel surcharge is $0.10 per month, per household.” It says the charge would “first appear on the residents’ November 2026 invoice.”
City Manager Jamey Conn’s Oct. 20 report (PDF p. 5) told the council the surcharge “would begin on the November bill and is projected at ten cents per month per household.” The item was listed as new business 10b, “Granger Waste Services Temporary Fuel Surcharge.” The packet does not include a staff recommendation.
Why the two cities’ figures differ
The letters do not explain why St. Louis’s charge moves with the price of diesel while the Ithaca letter states a single figure, 10 cents. They refer to different sections of each city’s contract, and neither contract is in the packets. The St. Louis letter refers to a charge on the city’s invoice; the Ithaca letter refers to residents’ invoices.
What we do not know yet
- What Ithaca’s council decided on Oct. 20.
- Whether St. Louis or Alma will pass the charge on to residents’ bills, or pay it from the solid waste fund.
- The October diesel price Granger will use for the first bill, and the surcharge it produces.
- The fuel-surcharge terms in each city’s contract with Granger.
Corrections and responses are welcome.