Final Action Taken
On February 8, 2018 the Town Council voted to reject the single hauler trash collection contract.
Town Council Vote
Do not approve Resolution Number 2018‑03 and direct the Town Manager to postpone indefinitely further discussions on having a single licensed solid waste hauler until the Town Council appoints a task force involving residents to address options for haulers including licenses and regulation as part of the solution.
The motion carried by the following vote:
Aye: 7 ‑ Mayor Collins
Vice Mayor Bien‑Willner
Council Member Dembow
Council Member Moore
Council Member Pace
Council Member Sherf
Council Member Stanton
Residential trash collection is an essential service in every community. How that service is provided can take many forms. In Paradise Valley, the Town has historically issued licenses to trash hauling companies who then offer their services to Paradise Valley residents. Each resident, or Home Owner’s Association (HOA), enters into an individual contractual arrangement with that hauler for the service that includes the frequency, scope, and price.
In 2016, responding to resident feedback regarding the number and frequency of trash collection vehicles operating in Town, the Council adopted an ordinance regulating trash collection days, the age of vehicles, and the conditions of the trash bins. The Council further directed staff to issue a request for proposal for a single trash hauler solution to test the market. Proposals were submitted, Republic Services was selected as the preferred vendor, and a license agreement was negotiated. Now the Town Council would like to hear from you.
On January 25, 2018 the Town Council received public comment on the proposed license agreement. They voted to reject the agreement and directed the Town Manager to negotiate a new contract with Republic Services. The Council will hold a study session on February 8 to discuss proposed changes,
What is in the Agreement?
The license agreement preserves a range of service options from which residents can choose.
- Basic Service = once per week trash and recycling collection, annual household hazardous waste disposal, semi-annual document shredding, and Christmas tree pick-up (costs per month)
- Year 1 cost = $17.84, Year 2 = $18.46, Year 3 = $19.11
- Standard Service = twice per week trash collection and once per week recycling collection, annual household hazardous waste disposal, semi-annual document shredding, and Christmas tree pick-up (costs per month)
- Year 1 cost = $27.84, Year 2 - $28.46, Year 3 = $29.11
Whether you subscribe for Basic Service or Standard Service, you may also request "walk-up service" in which the hauler will enter your property to retrieve and empty your bin(s) for an additional fee of $25 (basic) / $50 (standard) per month. Other additional services include:
- Additional 96 gallon cart = $5 per month
- Suspension of service for 3 months or longer = $5 per month
- Additional pick up = $10 (limited to 2 per year)
- Republic Customer Service is open from 4 a.m. - 9 p.m.
- Mobile App is available for service notices, payment, and to register a complaint
- Missed collection reported before 11 a.m. will be collected the same day. If reported after 11 a.m., trash will be collected the next day
- Collection vehicles will be 2017 and run on Compressed Natural Gas
- Collection vehicles will have video systems and GPS tracking to record pick-ups
- Existing contracts entered into prior to July 2017 will be honored for 7 years. If pre-existing contracts expire within 7 years, the 3.5% inflation rate will be applied to the last negotiated contract price for each subsequent year.
- Fee increases are limited to 3.5% each year for 6 years
Let us know what you think. Your comments and questions are welcomed.
- Proposed License Agreement including Republic Services Proposal (rejected January 25)
Frequently Asked Questions
Q. What happens if Republic doesn’t perform?
- The Contract has various measures that can be taken. The Town Manager is to be provided a monthly and annual report of customer complaints. The contract also requires various training and service requirements.
- The Town may impose liquidated damages (financial penalties) for performance failures such as failed customer complaint response, missed collections, failed cart return, failed clean-up, etc.
- Republic is required to provide a Performance Guarantee - that is, a performance bond equal to one year’s worth of revenue.
- Town has the right of inspection of records, facilities, equipment
- Dispute Resolution-Town Manager is the arbiter or disputes between the customer and Republic. Republic may appeal to superior court.
- The Town retains termination rights for non-performance, breach, or convenience
Q. Inflation adjustor of 3.5% seems high?
- The CPI for garbage collection is the Water, Sewer, Trash Index
- Monitored by the federal Bureau of Labor Statistics, this index has averaged 4% the last 5 years.
- No fuel charge, no labor variations, no taxes
Q. What if the economy collapses? Still 3.5%?
- Contract has a fail-safe that if Water, Sewer Trash Index is zero or negative, no price increase.
Q. I have tried the Republic service line already. There were long waits. Why?
- The call center is not set up to answer questions for contracts that have not been signed and in-effect.
- Target time to answer call is 30 seconds.
- Republic will provide a person at Town Hall during enrollment.
- Republic will have a dedicated phone line for PV customers (rings local)
- Republic has an office at Deer Valley and Cave Creek for walk in issues
- Online app only works for existing customers
Q. Can I keep or return to my previous provider if unhappy with Republic Service?
Q. Can Republic suspend my service, ever?
- Yes. For delinquent payments greater than 60 days they may remove the carts.
Q. What if I have in-ground containers?
- Most Favored Nation clause protects that for 7 years
- Requires special truck for this type of pick-up but that will be provided
Q. What do other cities and Towns do? (East Valley)
- City Run Trash Service - Phoenix, Scottsdale, Mesa, Gilbert
- Single Hauler - Chandler (Waste Management), Fountain Hills (Republic), Queen Creek (RAD),
- Multiple Haulers - Apache Junction (2), Carefree (2), Cave Creek (5)
Q. The basic price seems high when compared to other towns and some HOA deals. Why?
- Proposed prices ranged from $16.65-$28.97/mo
- Republic started at $21.45. In the range
- Varied topography affects average (flat and hills)
- Large lots affects average (1 acre v. 10,000 sq.ft. lots)
- Number of accounts affect average (~5,500 in PV)
Q. What happens if the hauler has a strike?
- Republic workers on this contract not union
- Town can terminate the contract
- Republic still obligated to pick up the trash. Substitute haulers.
Q. What is the impact of trucks on the roads?
- 70% less trash trucks. 1 truck = 1,200 cars
- Cost impact of 70% reduction hard to quantify- need specific study
- $77,000 - $250,000 based upon other studies with disclaimers
Q. What if Republic realizes how hard my house is to serve? Can they up my rate?
- No. These rates are applicable to all households. There are no exclusions for difficult houses, driveways, or streets.
Q. Why do we have to try once-a-week trash pick up for a quarter (July 2018-September 2018)?
- That has been removed from the agreement.
December 7, 2017 staff report and attachments (License Agreement, Request for Proposal, Memos)
Meeting video (Click on "Update on Trash Collection Alternatives" to jump to that part of the video.)
A Community Conversation was held on Thursday, April 14, 2016 at 6:30 p.m. in the Town Hall Council Chambers to hear from residents about their concerns and preferences. View meeting video (Click on "Community Conversation - Discussion of Alternatives for Solid Waste and Recyclable Collection Services" to jump to that part of the video.)