Provo hoping to slam a lid on landfill rent

Published: Wednesday, April 9 2008 1:04 a.m. MDT

Provo officials are fighting a proposed huge increase in rental rates at the Bayview Landfill, where the city's garbage is dumped.

Stuart Johnson, Deseret Morning News

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PROVO — The pending ruling in a current lawsuit could have local residents fronting more cash to get rid of their trash.

Provo leases 680 acres for Bayview Landfill from the Utah School and Institutional Trust Land Administration, an independent state agency that manages 3.5 million acres of Utah's trust land.

According to a special lease agreement between the two entities, SITLA can adjust the rental rates for the landfill every five years. But attorneys for Provo say the latest proposed increase — from $18,990 to $150,000 — is a load of garbage.

"It's so far out of how we've done it in the past," said Robert Keller, who represents Provo. "It's too much."

Thomas Mitchell, attorney for SITLA, said the institution is entitled to exercise its option to adjust rental rates on the basis of fair market value. He said the properties SITLA oversees are intended to help fund schools, and the institution is required to adhere to fair market prices. This latest rent hike is an attempt to get back in accordance with the trust's requirements.

"Did we charge enough in the past? Probably not," he said.

Fourth District Judge Darold McDade heard arguments in the case Thursday and should issue a ruling within the next week.

Though Provo is the lessee, South Utah Valley Waste Management oversees Bayview Landfill, located six miles north of Elberta along state Route 68, and six other cities — including Salem, Goshen, Woodland Hills, Springville, Spanish Fork and Mapleton — transport their waste to that location. SUVWM District Manager Henry Richard said he thinks the rent hike seems excessive.

"It's not like we're building huge bank accounts," he said. "We're just barely generating enough revenue to support our processes."

The landfill takes in about 150,000 tons of trash per year, Henry said. If the rent goes up to $150,000, they'll need to increase their tipping charges by $1 per ton to maintain their budgetary balance. Local residents will eventually have to make up the difference, he said.

"Everyone who uses our facilities would feel the impacts," he said. "Which are taxpayers."

On the other hand, Mitchell counters, increasing the rent makes more money available to fund public education.

Keller said Provo doesn't oppose a rental increase of any kind, but the proposed rent hike — which equates to a 690 percent change — is a huge departure for the method for fixing the rate.

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