REDMOND — The price of trash collection could soon increase in Redmond after Republic Services requested a 24% rate hike.

Erica Lindberg, general manager of the Arizona-based company, and Courtney Voss, a municipal services manager based in Bend, presented their argument at Tuesday night’s City Council meeting.

Councilors balked at the request, however, and asked for more time to work through financial data provided by the company. A decision has to be made by July 1, when Republic’s contract with the city is set to expire.

According to the Lindberg, inflation led to cost increases for the company on labor, fuel and fees for both recycling and disposal. She said those increases show no sign of retreating and the company needed to raise rates in order to keep up. Disposal fees jumped at Knott Landfill from $50 a ton to $70.

“We recognize that the rate ask before you is significant and that there is some level of discomfort and nervousness about that,” said Voss. “We feel like it’s a justified ask.”

But the request comes on the heels on what was a difficult year for Republic in Redmond, as service slipped in 2022 and customer complaints stacked up. According to Lindberg, employee turnover was the main culprit, coupled with the move to a regional call center that lacked local knowledge.

Lindberg said the city “fielded a lot of frustrated phone calls from city residents” about Republic.

“We sincerely do want to apologize for the hardships on the city and staff as well,” she said. “That is not the level of service we strive to provide.”

Lindberg said that service improved recently, and the company is back to full staffing levels. She said Republic added 14 new employees in Redmond as well as additional employees in its Pacific Northwest call center. She said there are now 157 employees in that center and 31 agents dedicated specifically to Oregon residents.

“This time last year was kind of a hot mess,” said Voss. “But it has gotten so much better.”

According to the company, it had more than $7 million in revenue in the city in 2022, which was driven up by new customers and driven down by higher recycling fees. It saw costs rise by about $565,000 over that same time.

The year saw the bottom fall out of the recycling market, said Lindberg. Materials like cardboard and plastics were valuable during the pandemic, but became less so once people returned to in-person shopping.

“Recycling is really expensive right now,” said Voss. “It’s not something … we’re making any money on at all. In fact, we’re paying a lot of money to ensure that materials get recycled instead of landfilled.”

But Redmond Mayor Ed Fitch and city councilors questioned the size of the price hike, and requested clarification on numbers the company cited.

Councilors John Nielsen and Cat Zwicker noted that the company’s projections showed no expected growth in Redmond, which they argued left out potential revenue increases. Councilor Kathryn Osborne noted the increase in recycling costs came after a surprising few years when packaging materials were profitable for the company.

Fitch said he hoped Republic would work with the city financial department to sort through the numbers, then come back before council with an updated proposal.

“It is a complex subject and we just need a little more figuring to do,” the mayor said.

Republic operates in 47 states and has more than 14 million customers nationwide. It took over garbage pickup service in Redmond in 2019 from High Country Disposal, absorbing the previous company’s contract with the city.

Republic has 13,000 customers in Redmond. According to the company, it made 2.4 million pickups in the city in 2022 and disposed of 42,000 tons of waste.

The company collects trash, recycling and yard debris from residential, commercial and industrial clients. Much of that first moves through the Negus Transfer Station on the east edge of Redmond before it heads to Knott Landfill, which is scheduled to close in 2029. Recycling heads to the Moore building, a Republic-owned facility in Bend where it is sorted and bundled. Yard waste is composted at the landfill.