LIHUE >> Kauai County's entire recycling program could come to a halt on June 30 unless a new agreement is reached between the county and the contractor, Garden Isle Disposal Co.
Kauai recycling to cease
if county spurns rate hike
The contractor says the
9.5 percent rise reflects
high fuel costs
By Anthony Sommer
As of late yesterday, Garden Isle President Scott Kouchi said he had not decided whether to accept an invitation from the county for further meetings.
The company has informed the county that unless it gives them a 9.5 percent rate increase, it will not pick up an optional additional year on the existing pact, which expires June 30.
The current agreement was signed in late 1999. It requires the county to pay Garden Isle $20,186 a month to recycle aluminum, cardboard and newspapers deposited at six sites.
Garden Isle is asking for an additional $1,917 a month.
County Engineer Cesar Portugal wrote Garden Isle yesterday saying an increase of some sort probably is justified, but the information provided by the company to the county does not justify a 9.5 percent rate increase.
Kouchi said the additional information being sought by the county would give prospective competitors for future contracts an unfair advantage in preparing their bids.
Most of the increase has resulted from higher fuel and electricity costs, Kouchi said.
"It's ironic the proposed county budget for next year contains major increases to reflect high fuel costs," he said.
"On average, it is the same as the other rate increases we have applied to our other customers."