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The original item was published from 9/10/2020 9:26:25 AM to 9/11/2020 2:15:53 PM.

News Flash

TC News & Information

Posted on: September 10, 2020

[ARCHIVED] Republic Services Contract Revised and Renewed

Republic Services Contract Renewed

Trophy Club, TX (September 10, 2020) – During the August 11, 2020, Trophy Club Town Council meeting, members unanimously discussed and approved a new contract with Republic Services as the existing one had expired in May 2020. The Town has been operating under a month-to-month plan since its expiration.  

The Town of Trophy Club negotiated a new recycling and garbage collection agreement with Republic Services that revises the rate to $18.27 per month, as compared the previous rate of $16.14 per month.  The rate increase is necessary in order for the Town of Trophy Club to maintain its current service levels for garbage and recycling services.  

The rates for residential customers are increasing, but not excessively. The proposed monthly increase to residents for sanitation costs is $2.13 per month, after five years of no increase. Town staff reviewed the increase and rates in surrounding cities and believes the proposed rate is reasonable. Trophy Club’s sanitation and recycling customer base is approximately 75% residential customers, which is a far more expansive residential base than that of the neighboring communities. In fact, the neighboring cities do have lower rates, but their residential base is anywhere from 30% to 50%, with those residential rates being subsidized by a robust commercial and industrial base.

This additional recycling rate increase is due to an earlier approval in which Town Council approved the average base rate increase of $1.20 for recycling collection services.  Due to a system collection error, this amount was never implemented for collection from residents. It is important to note that the Town is not back billing for those charges. The cost increase is also contributed to by the unanticipated, sustained growth in the volume of materials that are being collected in town.  

The higher rates are based in part on the falling value of recycled materials due in part to China’s decision in 2018 to stop buying all but the cleanest and highest-value recycling from overseas.

"The value of recyclables isn’t coming close to the cost of disposing of them," said Town Manager Steve Norwood.

Rates have also been driven upward by Texas state rules that prohibit the mixing of garbage and items earmarked for composting that will now have to be gathered and disposed of separately. Recycling was once a cash cow for area municipalities, but it’s quickly spiraling downward because of China’s rejection of shipments.

Commercial rates for existing customers are increasing by 4%. Annual rate increases are tied to the CPI Index for sanitation costs, with a not to exceed an increase of 4% annually.

Jeri Harwell, Republic Service’s Municipal Services Manager, said, "The cost increase of the services provided over the years has outpaced the rate we have been charging. This is not a peculiar problem to Trophy Club. This is a worldwide problem.”

RESIDENTIAL CURBSIDE TRASH                   $ 13.50/MO

RESIDENTIAL RECYCLING (18 Gal Bins)        $  4.77/MO

RESI & RECYCLE TOTAL:                                 $18.27/MO

For questions, please contact Republic Services at 480.627.2700 or www.republicservices.com

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