By SHANNON HAUGLAND
Sentinel Staff Writer
City Administrator John Leach has sent a letter to the city’s solid waste contractor, Republic Services, to “address the new shipping requirements” being imposed by Alaska Marine Lines.
The solid waste collected by Republic is shipped south in open-top containers on Alaska Marine Lines barges. But AML notified Republic last August that in the future it would accept only waste that is baled and enclosed in “hard-top closed containers.”
The barge line said the new requirement is intended to reduce the risk of fire aboard the barges, and has said it’s prepared to refuse shipment of Sitka’s waste through Republic in its present form.
Leach has proposed removable hard tops on the shipping containers to further reduce fire risk, in addition to other improvements initiated by the city. Leach made it clear city ratepayers can’t afford both the steep rate increases by Republic as well as the expensive equipment needed to provide the compaction AML claims is needed to address fire risk.
“We are offering a solution that can work for all parties who are committed to addressing fire risk and safety at sea rather than making this ‘a solely financial decision,’” Leach said.
The city’s June 10 letter to Republic is headed “CBS proposal for reducing fire risk in municipal solid waste,” and says it has been addressing AML’s concern through continuous improvements at the transfer station, including using heavy equipment to compact the waste, educating the public on unacceptable waste, inspecting waste and removing hazardous materials.
Leach has been keeping the Assembly apprised of the situation, and included a copy of his latest correspondence to Republic Services in the Assembly packet for tonight’s regular meeting, 6 p.m. in Harrigan Centennial Hall.
There is no action item on it, but Leach will discuss the issue under correspondence. The full letter is available to the public through cityofsitka.com, in the meeting packet available online, under correspondence.
Leach said today he hasn’t heard from Republic, though he had asked for a reply by June 16. A work session by the Assembly and Republic is scheduled for 5 p.m. July 13.
“We are excited to hear that RS is willing to work toward a solution to the shipping requirements being imposed on Republic Services by Alaska Marine Lines,” Leach said in his letter.
“As we have previously stated, the letter is notice from AML which is a company not in contractual privity with the CBS,” Leach said. “In your letter to the CBS on August 31, 2020, you requested a ‘transition to compacted waste in closed top containers.’ However, no cost allocation or timeline was proposed with the request.”
In his letter to Republic Leach also refutes claims by AML that the city is refusing to compact its waste “based on solely financial” reasons, and that the city “has not committed to using closed containers to improve safety.”
“Although we have demanded the information, no studies have been presented to the CBS showing the increased safety of incorporating additional compaction,” Leach wrote. “CBS takes issue with the insinuation that we view this as ‘a solely financial decision’ as we took early action and worked diligently to improve our waste sorting efforts well beyond other communities, including communities with closed containers.
“Furthermore, the imposition of a 50% shipping increase by AML appears to also be ‘solely financial’ given their prior stance that shipments would cease on a specified date if the fire risk issue were not addressed.”
AML said it will be charging Republic higher rates effective July 1 unless Sitka’s waste is compressed and transported in closed containers by Dec. 31, 2021. AML will require a “mutually agreed addendum to the contract between RS and AML,” Leach said.
“Once again, AML is not in contractual privity with the CBS,” Leach said. “AML further requires that RS and AML be allowed to adjust rates if other transport methodologies become available which improve fire safety but cost more. This approach essentially provides AML and RS the freedom to demand new shipping requirements with little to no evidence to support the requirements and pass the costs, however high they may be, to the CBS.”
Leach also stated that charges to Sitka for shipping waste has gone up since 2017 by 19 percent “with little or no justification or data to justify the increase.” He pointed to a contractual process that the city says has not been followed.
Leach said the city “formally rejects the increase proposed to RS until documentation is provided and the process outlined in section 8.3(b) is followed. We require RS to itemize all costs that support the increase.”
In conclusion, he said, “We are offering a solution that can work for all parties who are committed to addressing fire risk and safety at sea rather than making this ‘a solely financial decision.’”
