Monopolistic Districting the Wrong Move

The Coloradoan newspaper, February 1, 2010

Let me try to understand this. While the city faces unprecedented budget problems, the City Council is spending its time on trash districting and creating a trash service monopoly.

This is misplaced priorities and opposite of the old adage, "If it's not broke, don't fix it."

Fort Collins has been well-served by our two long-time locally owned trash hauling companies - Gallegos Sanitation and Ram Waste. Customers have choice and long-time relationships. Competition has served to keep service high and rates low. More recently, Waste Management of Houston, Texas, has provided further competition, particularly in the commercial market.

But now the city is in the process of pushing through a "pilot" trash district that would disrupt those long-term relationships and grant a sole-source contract to an out-of-town, multinational conglomerate with no local roots or commitment. And this would be done at the worst possible economic time.

Locally owned businesses and jobs would be at risk. Here's why: Right now Gallegos and Ram together service more than 5,500 customers in the pilot district while only about 900 use Waste. With this one move, the council will force 5,500 Ram/Gallegos customers to move to Waste (or pay the city's new base fee). What a windfall for Waste, and as for Ram and Gallegos - they will have to lay off 14 long-time local employees because of the forced removal of their customers and involuntary reassignment to Waste.

And how about you, the citizen?

Yes, the introductory rates look low. But people know this is only the beginning of new "fees" and rate hikes once the two long-term companies are wiped out and forced out of business. Over time, monopolies inevitably lead to higher rates - and substandard service. (In Loveland, the city runs trash collection, and its "environmental fee" has increased from $1.25 to more than $7 - on top of basic trash service fees.)

Ultimately, this comes down to three considerations - choice, service and cost. Choice breeds competition. Com petition, during any period of time, breeds better service and lower costs.

What about city efforts to give citizens meaningful notice about this important issue? Something is wrong when the council doesn't take extra steps to publicize the public hearing about such a controversial undertaking. The meeting was set on very short notice on the city Web site and general posting inside City Hall. If this plan is a good idea, why doesn't the council want an open process and a full, robust public discussion? We hope this doesn't mean the council's mind is already made up

On behalf of Fort Collins Citizens for Competition and Consumer Choice, we believe monopolistic trash districting is the wrong move at the wrong time. The city should focus on its current functions instead of trying to turn successful private businesses into a government monopoly.

Visit www.DontTrashOurChoice. org. Make your voice heard by attending City Council's hearing at 6 p.m. Tuesday.

If I was the mayor, I would be on the front line of this attempted government takeover, standing up for free enterprise and freedom of choice for the Choice City.

Join me in standing up for local jobs, local companies and the principles of competition and choice.

Ray Martinez is a former mayor of the city of Fort Collins and chairman of Fort Collins Citizens for Competition and Consumer Choice.

http://www.coloradoan.com/article/20100201/OPINION04/2010313/1014/OPINION/Monopolistic+districting+the+wrong+move