Republic Services Announces $6 Million in Refunds to San Angelo Businesses

Republic Services announced Tuesday afternoon that it will refund commercial businesses in San Angelo who are or were commercial dumpster trash customers more than $6 million.

Republic said that it is “voluntarily refunding certain fees paid by affected commercial and industrial customers in San Angelo, going back to August 1, 2004.” The timeframe is married to the term of the previous trash collection and landfill management contract that Republic had with the city of San Angelo.

The new contract with Republic Services, with much higher fees than the previous contract allowed, went into effect Aug. 1 of this year. Some commercial customers complained of commercial dumpster fee increases of as much as 92 percent.

Republic said that the refunded amounts that will be paid to each commercial business affected includes “interest at a rate of 3.5 percent.”

Competitor Texas Disposal Systems CEO Bob Gregory revealed the hidden fees in the cover letter of the TDS bid in the trash collection and landfill management Requests for Proposal (RFP) process April 1. Because the city of San Angelo provides an exclusivity arrangement with the winning trash contractor, the city had a responsibility to protect commercial entities within the city limits with ordinance rates. Until Gregory’s letter, no one, not the city staff, or even the businesses affected, realized that the “Environmental Recovery Fee/Fuel Charges” were unauthorized by law.

The announced $6 million refund is not slowing down Gregory or the lawsuit he orchestrated through his family’s Acme Iron and Metal, along with Mayfield Paper, against Republic. The two companies sued Republic for the overcharges. They are seeking treble damages and asking the court to create a class for a class action lawsuit representing all San Angelo commercial dumpster customers.

“It is good that Republic officials have admitted to the systematic overcharge of the businesses in San Angelo. But the amount of the proposed reimbursement is clearly not enough. And, besides, once the truth comes out during the discovery and trial process concerning knowledge and intent, there could be treble damages. This process of litigation is only in the beginning stage,” Gregory said in a text response to this afternoon’s announcement by Republic.

Republic said the company would begin mailing refund notices and payments to affected customers in October. “Refund notices and payments will be mailed to current and last known customer addresses,” the statement from Republic said.

Full Text of the Republic Services announcement:

Statement on Refund Payments to Commercial and Industrial Customers in San Angelo, Texas

Republic Waste Services of Texas, Ltd. has notified the City of San Angelo that Republic will begin issuing refund checks in October to affected customers following a review of commercial and industrial customer billing statements.

Republic is voluntarily refunding certain fees paid by affected commercial and industrial customers in San Angelo, going back to August 1, 2004. This ten year period covers the full term of Republic’s prior contract with the City. Republic was assisted by a leading international accounting firm on the review. This review considered ten years of billing data pertaining to environmental recovery fees and fuel recovery fees, including associated franchise fees and sales tax. Based on findings from the review, Republic will be refunding in excess of $6 million to commercial and industrial customers. Refunds will include interest at a rate of 3.5 percent.

The charges to be refunded were made in good faith. We hope that our decision to extend refunds going back ten years, with interest, demonstrates our desire to address any concern that amounts charged by Republic were incorrect or unauthorized, and will enable affected customers and this community to move forward.

We will begin mailing refund notices and payments to affected commercial and industrial customers in October. Refund notices and payments will be mailed to current and last known customer addresses. 

For more stories on the San Angelo trash controversy, click here.