Item 4F Item XX Letter agreement between the City of Southlake, Texas and Republic Waste Services of Texas, Ltd., amending the Contract for Residential and Commercial Refuse Collection dated
March 22, 2007
Jim C. Blagg
Letter Agreement
Republic Waste Services of Texas (dba
Duncan) began providing refuse collection
services in Southlake on 1 May 2007.
First term of the contract was for an 18
month period that ends on 31 October 2008
Duncan has experienced significant cost
Increases that cannot be recovered with the
CPI method in current contract
Letter Agreement
Fuel costs have risen from $2.50 per
gallon to $3.71per gallon in the last 12
months - $120,000.
Actual per pickup volume in Southlake
has be 42 lbs. per pickup an increase over
their estimate of 31% - disposal costs
increase of $86,000) and labor costs
Increase of $131,000.
Letter Agreement
Current contract requires Duncan to give 180 days notice prior to October 31, 2008.
City would prefer that Duncan not give notice, but give us time to sit down and see if there is room for negotiation.
Duncan has asked the City to consider re-negotiating the current contract.
Letter Agreement
This letter agreement allows the City and Duncan to sit down and attempt to come to some agreement
The agreement allows Duncan to give its 180 notice on or after June 1, 2008.
Questions
Jim C. Blagg
817.748.8601