NOVEMBER 2008

New York City to raise max hauling rates

For the first time since 1997, New York City waste haulers are getting an increase in the maximum waste hauling rate. The New York City Business Integrity Commission (BIC) proposed to increase the maximum rate that waste haulers may charge New York City commercial establishments for garbage removal.

Dominick Incantalupo, of Chelsea Sanitation Service, Inc., and the chair of the New York City Chapter of the National Solid Wastes Management Association (NSWMA), applauded the move and stated, “This rate cap increase is long overdue.”

The BIC’s proposed change to the rate cap is meant to comply with its statutory obligation to ensure that waste haulers in New York City can earn a reasonable rate of return and that all commercial establishments continue to receive high-quality, reasonably-priced, full-service waste removal.

The BIC’s study of the existing rate cap structure has concluded that the 200 companies comprising the city’s carting industry are very competitive. According to the BIC, the majority of businesses in New York City pay below the rate cap, and those businesses that dispose of recyclables and lighter waste generally pay significantly less than the rate cap.

David Biderman, a representative from NSWMA, stated it would be better to phase out the rate cap and allow the market to set the price for these services. “If phasing out the rate cap isn’t possible, we believe these rules must include a mechanism to ensure regular and routine rate cap review so we don’t have to wait 11 years for another adjustment, which would be fair for carters and customers alike.”

Biderman noted the BIC’s proposal doesn’t even match the rate of inflation during the last decade. Especially in recent years, New York City carters have absorbed sharp cost increases. Biderman added, “We urge the BIC to keep an open mind during the public hearing process, so we can arrive at a fair and equitable rate cap.”