TRASH SURCHARGE PASSES ON THE HIGH PRICE OF GASOLINE SANTA CLARITA VALLEY CUSTOMERS FEEL A 10 PERCENT BITE.

Byline: Eugene Tong  Staff Writer

SAUGUS - High fuel costs hit Dennis Lebman in the mailbox when he unsealed his quarterly trash bill and found a new 10 percent surcharge a local waste hauler said is needed to help offset recent price spikes.

``We're already getting reamed by the oil companies, and now we're getting reamed by everybody we're doing business with,'' said Lebman, 42, who lives in a section of Saugus just outside the Santa Clarita city limits. His September invoice from Waste Management includes a $5.99 fuel charge - 10 percent of his $59.99 quarterly bill.

``I'm sorry, it doesn't cost $5.99 a home for three month's gas. I'm sure they'll make quite a profit for that.''

The Houston-based trash service instituted the surcharge beginning last month for customers in unincorporated Santa Clarita Valley as diesel prices ascended past $3 per gallon.

The city of Santa Clarita is unaffected. In November 2003, the city granted Waste Management affiliate Blue Barrel Disposal its $70 million residential franchise, which has locked rates until 2007. Waste disposal in Los Angeles County is decentralized - each customer has individual contracts with their trash company of choice.

Waste Management spokesman Eric Rose said Wednesday the surcharge only covers a portion of fuel premium, and would be allocated only within unincorporated county areas. It won't subsidize higher fuel costs incurred by Blue Barrel in the city of Santa Clarita.

``It won't fully cover the additional cost of fuel,'' he said. ``But it will offset our increased operating costs.''

The trash hauler said surging fuel prices have added $20,000 a week to operation costs within city limits compared to a year ago. Spot prices for low sulfur No. 2 diesel this week hovered between $2.13-$2.51 a gallon, up from $1.46-$1.55 a year ago, according to the U.S. Department of Energy. When the city signed the franchise agreements, it was between 80 cents to 90 cents per gallon.

At the pumps, a gallon of diesel in Los Angeles/Long Beach cost $3.46, compared to $2.40 a year ago, according to the Automobile Club of Southern California.

Rose said the surcharge will be adjusted monthly to reflect changes in diesel prices - it'll be gone if prices are at or below the 1999 average of 51.8 cents. There is a two-month lag time.

Santa Clarita's 170,000 residents have been spared - the city contract holds monthly trash rates at $18.64 through April 14, 2006. Then the rates drop to $16.25 per month until June 2007, when increases of up to 5 percent are permitted. Fuel can only account for up to 5 percent of the rate hike, said Travis Lange, the city's environmental services manager.

``The contract is very clear about certain services they provide,'' he said. ``I think we did get a good deal, and prices appear to be lower.''

``We like to have a fuel service charge in the Santa Clarita area to cover the additional costs we are incurring.'' Waste Management's Rose said. ``There are no discussions at this point with the city of Santa Clarita regarding a fuel surcharge.''

Burrtec Waste Industries, which holds the city's $35 million commercial trash franchise, is similarly bound until at least 2006. Fuel costs for the Fontana-based trash hauler have jumped some 37 percent over the past six months, and they have no redress in Santa Clarita.

``I'm sure the city as well as our customers realize these costs are escalating,'' said Michael Arreguin, the company's vice president. ``Eventually, we'll have to adjust our rates accordingly.''

All this doesn't seem fair to Lebman, who just moved in March to his Plum Canyon home with is wife and 5-year-old son. His neighbors over the ridge to the south are city residents, and are exempt from the surcharge.

``It would be a little more fair (if they charged city residents),'' he said. ``We're going to have to bear the brunt of it. ... Now I'm afraid we're going to get this everywhere. Where does it stop? It doesn't.''

The county has plans to phase-in a trash franchise system in three to five years, said Paul Novak, planning deputy for county Supervisor Michael D. Antonovich, whose 5th District includes the Santa Clarita Valley.

``It would provide the county with a little more control when there are questions about service or charges,'' he said. ``I think the franchise system has over time proved to be more efficient than the system we currently have. It would be easier to attain the best service at lower rates.''

But it couldn't come soon enough for Lebman, who has been cutting back on trips to keep his monthly gasoline bill around $200.

``We're already not doing things in the weekend because of the gas prices,'' Lebman said. ``We'll spend a day doing whatever errands that are necessary shopping-wise. Other than that, we're staying home.''

Eugene Tong, [phone]

eugene.tong(at)dailynews.com

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Photo:

(color) Dennis Lebman saw the new 10 percent gas surcharge on his recent quarterly statement from a local waste hauler. In this photograph, Lebman's home address has been edited out.

David Crane/Staff Photographer