Item 4F AudioSOUTHLAKE
9
Item 4F
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
Integrity March 22, 2007
Innovation
Accountability
Commitment
to Excellence
Teamwork
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The City of Southlake provides municipal services that support the highest quality of
life for our residents and businesses. We do this by delivering outstanding value and
unrivaled quality in evervthing that we do.
C1 Achieve the C2 vthin an spaces C3 Provide attractive C4 Attract and keep op- ier
d unique aces for businesses to drive a
Bards of c onv wi q ue s
security city and region enjoyment of personal dynamic and sustainable
interests economic environment
B1 Implement and B2 Collaborate with B3 Pursue B4 Provide high B5 Optimize
share best practices select partners to innovative service ual use of
across all departments implement service delivery options qity customer technology
solutions service
F1 Achieve F2 Maintain or F3 Invest to provide and F4 Maximize
titive financial improve AA bond maintain high quality return on
marks rating public assets investments
W nsure our people L2 Enhance L3 Attract, L4 Recognize L5 Actively pro..
understand the leadership develop and and opportunities for partn
nd how they caulmWELL0 retain a skilled reward high an
to to it workforce performers
This item addresses the Council's Strategic Focus Area of Performance
Management and Service Delivery.
VA
Letter Agreement
Republic Waste Services of Texas (dba
Duncan) began providing refuse collection
services in Southlake on May 1, 2007.
First term of the contract was for an 18
month period that ends on October 31, 2008.
Duncan has experienced significant cost
increases that cannot be recovered with the
CPI method in current contract
U SOUTHLAKE
Republic Waste Services of Texas (dba Duncan) began providing residential
and commercial refuse collection services in Southlake on 1 May 2007. The
first term of the contract was for an 18 month period that ends on 31 October
2008. Since beginning the contract Duncan has experienced a number of cost
increases that were not foreseen at the time of signing the contract.
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Letter Agreement
Fuel costs have risen from $2.50 per
gallon to $3.71 per gallon in the last 12
months $120,000.
Actual per pickup volume in Southlake
is 42 lbs. per pickup, a 31% increase over
their estimate.
Disposal costs increased $86,000
Labor costs increased $131,000
0 SOUTHLAKE
For example, Duncan's fuel costs have risen from $2.50 per gallon to $3.71
per gallon in the last 12 months. This has added approximately $120,000 to
their costs that cannot be recovered with the CPI method currently in the
contract and with rate increases limited to a maximum of 4
There are also additional costs related to the volume of refuse being
generated by residential customers. Duncan estimate, when it negotiated the
current contract that each residential customer would generate 32 lbs. of
refuse each pickup. This represents a 28% higher rate than any of its other
cities like Mansfield, North Richland Hills or Grand Prairie. The actual per
pickup rate in Southlake has be 42 lbs. per pickup an increase over their
estimate of 31 This volume creates additional costs in two areas, disposal
costs (an increase of $86,000) and labor costs ($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 rather allow time for negotiation.
Duncan has asked the City to consider re-
negotiating the current contract.
U SOUTHLAKE
Duncan has asked the City to consider re- negotiating the current contract.
The current contract requires Duncan to give 180 days notice of their intent to
terminate the contract, which means they would have to give the City notice
by 5 May 2008. The City would prefer that Duncan not give notice, but give us
time to sit down and see if there is room for negotiation related to the price of
refuse collection and other related items in the contract.
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Letter Agreement
This letter agreement allows us to work
toward a new contract.
The agreement also allows Duncan to
give its 180 -day notice on or after June
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U SOUTHLAKE
This letter agreement allows the City and Duncan to sit down and attempt to
come to some agreement. It also allows Duncan to give notice at any time
after June 1, 2008.
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Questions
Jim C. Blagg
817.748.8601
0 SOUTHLAKE