Business

New San Angelo Trash Contract Increases Rates 48%

By Joe Hyde, Jun 30, 2014
 

The draft of the new trash contract between the City and Republic Services will have a substantial rate hike. The current ordinance rate for residential trash pickup is $9.81. That includes twice per week trash pickup.

In the draft contract published in the packet of information for Tuesday’s city council meeting, the proposed contract incorporates single-family residential rate increases to $13.97 with an additional 50 cents tacked on when recycling is implemented by Republic. The new contract picks up trash one time per week, and recyclables pickup one time per week. That brings the total trash bill to $14.47 per month, or a 48% increase.

Republic proposes to pay a one-time royalty fee of $3.6 million for landfill operations, and will make an initial payment of $4.735 million to cover closure obligations when the current landfill site is full.

The contract has two extensions. One is for an eight-year tem, and additional term for two years. But if the landfill is expanded during the term of the contract, the term can be renegotiated to recoup Republic’s costs in building and permitting additional landfill land.

“If Landfill is expanded, Provider will be granted an extension to the term of this Agreement commensurate with such expansion, and the parties agree to negotiate any rate adjustments and/or additional royalty payments that will be due to City and Provider,” the contract reads.

Usually, city council agendas are posted late Friday afternoon. This agenda for the July 1st regular city council meeting did not get posted until just before 9 a.m. Saturday, just in time to meet the 72-hour advance posting as required by the Texas Open Meetings Act.

The San Angelo City Council will vote on the new contract Tuesday.

The City Council chose to negotiate the new contract alone with Republic after choosing Republic as the sole winner of a Request for Proposals process. There were two bidders. The City chose to negotiate with just Republic for the final contract. The existing contract expires July 31. Texas law does not require the City to put the trash contract out for RFP.

Today at 1:30 p.m., competing bidder for the contract, Texas Disposal Systems CEO Bob Gregory, will hold a press conference at the Cactus Hotel. He is expected to outline the provisions of a class action lawsuit he is spearheading against Republic Services for allegedly overcharging commercial dumpster customers over 14 years. The amount of the alleged overcharges is $9.2 million.

Update 11:19 a.m.

City Public Information Officer Anthony Wilson asked to clarifiy the 50-cent surcharge on the residential rates.

"The 50-cent charge you mentioned would take effect only if, six months after recyclable collection is implemented, the citywide recyclable collections do not amount to at least 500 tons per month. If that were the case, once recyclable collections rose to the 500-ton level, the 50 cent charge would be eliminated," Wilson said.

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Comments

If they are going up like that in the city, how much more are they going to charge us in county? I already pay over 50.00 a month for once a week pick up. This is getting outrageous.
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Here we go since republic may have to pay back all the fuel overcharges from the commercial customers , they are going to make the residental customers pick up the slack. Not only do we get sorry trash service to start with, we will have to pay more and get our trash picked up less each week. Way to go City of San angelo i guess they are giving you a cut under the table to get there way because you refuse to look at any other service.
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Beemer, Mon, 06/30/2014 - 10:07
I totally disagree with trash pick-up only once a week. Raising the rates and cutting pick-up times just doesn't make sense. I know my alley will be covered in trash with only once a week service. It's bad enough now with twice a week pick-up. I am constantly picking up trash in the alley since most of my neighbors just throw their trash bags over their fence and then critters break open the bags and scatter trash everywhere. I give up.
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Higher bills, plus once a week pick up??? We have a community of feral cats in our neighborhood which prevents us from putting our trash out until garbage day. So what should we do with it now? Let it pile up in our house or garage until the one day of the week it will be picked up? Something stinks here, and it's not just the trash!
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I have a large quantity of weeds around the spot where they pick up my trash. To compensate for the additional charge I expect to be weed free come the next pick up day. Added charge should equate to added value.
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This whole thing has sounded fishy since the beginning....hmmm, I wonder how much the council members are making behind the scene. I would say all San Angelo citizens need to contact the city council and say we don't want this "garbage."
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So let me get this straight, we get to pay more money for less service! Wow, this must be the same mentality as the TGCAD has in raising taxes. What a scam, I think there's a rat in the trash bin, sounds like a little bit of kickback is going on here, can you say 'investigation time'.
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Still trying to wrap my head around this! Recently they were exposed for gouging customers, but they still get the contract? All this and they get more money for less work? Good job COSA, always putting people first.
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Lorax, Mon, 06/30/2014 - 13:04
I have two questions you may be able to answer, Joe: 1. Where are they taking the recycling? 2. Will Republic be providing the trash receptacles?
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I have 3 large trash containers right now that are always full when picked up twice a week. Now if I do my math correctly, cutting back on one trash pickup day will now require me to purchase 3 more containers at roughly $30 dollars apiece so all 6 will be full on that one pickup day...... I THINK NOT !!!!! Most of the people aren't going to pay higher prices for the services plus spend the extra bucks to purchase more containers. I can foresee all kinds of large business dumpsters being regularly visited where folks will discard their own trash into someone else's dumpster ... OR.... I know of several dark, secluded and out of the way, seldom traveled roadsides where trash will soon be dumped.......
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Depending on who says what, it looks like how ever you look at it, the people who live in the confines of this city got the ***SHAFT****. REPUBLIC WANTS TO CUT OUR SERVICE AND CHARGE MORE FOR DOING SO..THAT IS BEING SHAFTED. The city apparently doesn't care or mind with the new idea and it is no boner to think they will pass the contract. How come we are just hearing about the cut in service??? If everything comes to pass, they don't be surprised when Republic doesn't require to have everyone using trash containers which will be an additional charge on top of everything else. I don't like the idea of one time a week for pick up and having to pay more for less service...
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It is rumored that Republic will soon release their user trash can specifications to the city's leaders. Each residential customer will be issued two 50 or 65 gallon containers - one for garbage and one for mixed recyclables. There will be a monthly fee attached for the use of said containers - which will be added to yur monthly bill. You will not be able to purchase approved containers at any local store - as they are designed to be lifted by automated arms (part of the trash truck). Customers will be required to maintain the area the containers are set into (the alley). All litter and threats to good health will be removed by the customer. Enforcement will be by the Health Department. The fines for failure to maintain a clean and sanitary trash can area have not been set - however, $100 is being bandied around. If a customer has need of more than the basic two containers, they will be able to add containers to their contract - at an additional fee (yet to be determined). Trash left outside of the issued containers will not be picked up - which includes filled trash bags. My question: Who is selling the approved trash cans to Republic? Someone local?
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COSA this is the WRONG thing to do for our city!!! I get the cost going up, many cost are increasing, but I do NOT get the fact that we are going to ONCE a week pick up. We are a family of 5, there are times when our trash can is overflowing and we break down all our boxes and smash all of our plastic bottles!! The city has it's priorities fixed on the wrong goals. COSA has the potential to be like our "benchmark" cities, but first they need to step back and listen to the citizens that matter, not just the ones that help line their pockets!!
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so we pay more for less. I think this is something that should be put to the voters of the city
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Residents: BOHICA (Bend Over Here It Comes Again) Standard operating procedure for this City Council when awarding contracts.
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Wow that seems extreme, I live in town and have one of the blue cans and can't fill it once a week much less twice. We have a household with 5, so you either have a very large family or throw your business trash in your home trash, Maybe you could buy your own landfill and save money.
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It might be best for you folks out in San Angelo to not create so much trash during the week. Reuse that old pizza box, refill those beer cans, toilet paper has two sides, eat your leftovers.... J/k:-) but it's a pretty crappy deal for you folks. Hope something can be worked out
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live, Tue, 07/01/2014 - 18:20

City Public Information Officer Anthony Wilson is splitting hairs. The article headline says that the new trash contract will increase 48%. This is a correct headline. The City is engaged in a small effort to obfuscate the issue: That is is a significant rate hike.

From City Director of Operations Shane Kelton's presentation this morning, he showed the new and old rates for comparison for the new and old contracts, with all sales taxes and fees included. They are:

Old Rate with taxes: $11.22 per month

New Rate with taxes: $16.12 per month

Calculation:

Increase = (16.12 - 11.22)/11.22 = 0.43, or 43%

Now, Republic built into the now-approved contract a $0.50 surcharge on all residential customers IF the recyclable total tonnage doesn't reach 500 tons. Over 30,000 residential customers, that is $15,000 per month in revenue, or $180,000 per year. But they excluded GLASS from the approved list of recyclables. Glass is pretty darned heavy. So, you'll have to make up the tonnage in paper, I guess.  Republic is going to use newspaper ads to convince everyone to recycle, so you can see where this is headed... San Angelo will be challenged to reach 500 tons per month. (BTW, that's 1 million pounds, or 33.33 lbs. per residential customer per month. I don't think the bluest of the blue Obama-lovin' democrat in San Angelo has 33 lbs. of paper and plastic recyclables per month. Republicans MAY be able to make some of that weight up with empty beer cans, but most of them I know drink from longneck bottles (that are excluded from recyclable totals)).

So assume that a year from now San Angelo is going to be below the 500-pound threshold. The calculation looks like this:

The taxed total on the $0.50 "you stink at recycling surcharge" is $0.50 * 1.0825 = $0.54

Increase = (16.66 - 11.22)/11.22 = 0.48 or 48%

The increase will be 48%.

VR

Joe

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They are making extra on people that get paid on the 1st - 3rd because they wont let us change our due dates and we are charged late fees mean while Republic is charging county residents almost 3 times the city rates.
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