Did your bill increase? Here’s why:
Gallegos Sanitation, Inc. would like to ﬁrst and foremost say THANK YOU! We have reached our 60th year of serving Northern Colorado. We could not have done it without customers like you. Our core values will continue to be customer-centric and focused on Safety, Service, and Sustainability.
Our goal is to provide you the highest quality service at a fair price. Due to the dilemma with today’s current recycling market, we all find ourselves at a crossroad. Dilemma is defined as, “a situation in which a difficult choice has to be made between two or more alternatives, especially EQUALLY UNDESIRABLE ones.”
In the past 18 months, we have seen local and world-wide recycling COSTS skyrocket due to many factors. A tip fee is the charge we receive for disposing of curbside recycling. The cost is now 4x more than what the rates were just a couple years ago. This means,GSI has incurred an 87.7% price increase in our recycling tip fees just from January to October of 2019. As a result of our commitment to Caring for the Earth, we see it necessary to make changes. To keep our business sustainable on all fronts, a change in rates to customers was absolutely necessary.
Due to these extenuating factors, some of our customers did indeed receive a price increase on this quarter’s bill. Please take a moment to familiarize yourself with what has happened.
• Substantial changes occurred in the global recycling market from 2017-2019.
• Many Asian markets are no longer accepting America’s recycling. Items such as mixed paper and low-value plastics are not being taken; additionally, other recycling outlets have declined dramatically.
• Accepted contamination thresholds went from as high as 1-5%, now down to .5% in China, the world’s largest importer of recycling.
• There is more supply than demand for recyclable materials internationally and lack of infrastructure here domestically.
• GSI pays over $80 per ton to dispose of single-stream recycling. This is dramatically different from just a few years ago, when hauling companies were being paid for recycling. Again, this all comes back to the factors mentioned above with local and domestic markets. If there is not a market for a product, that product does not sell, regardless.
• Year-over-year, the cost to dump trash at area landﬁlls has increased.
• Per the Senate Bill, SB19-192, Front Range Waste Diversion Enterprise Grant Program, beginning January 1, 2020, there will be a new fee assessed on waste disposed of at landﬁlls operating in the front range. This fee is set to increase year-over-year and adjusted annually after January 1, 2024 due to inflation.
Where was my notice of a price increase?
For the last year, in the middle of the paper statements, there has been a notification alerting customers of a coming price increase. See example below. E-statement customers were notified in January of 2019 via the statement message area.
Why is my price increase different than others?
Some of our rural and customers, in outlying areas, had not received a price increases for several years.
Due to the factors mentioned above and those explained in greater detail below, we had to raise our prices to keep recycling sustainable and adjust to the current market rates.
Also, some of our customers are in HOAs. HOAs typically have a contractually agreed upon rate their residents pay for waste disposal services.
How can I lower my bill?
Please contact GSI. We can help you right-size your service/container and save money.
What does bundled mean?
Bundled means your trash and recycling are bundled on your bill.
We recognize this has been a year of shifts for us all. We appreciate your understanding and support of our local, family-owned business. We are committed to offering Northern Colorado the safest and most efﬁcient sanitation services, reliable equipment and the expertise you can count on.