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Week 14 - Day 4

Well, well, well ...

We've gotten ahold of some correspondence between the contractor and the City Manager.  In a May 22 letter, the contractor's President states,

"Obviously, we would prefer to work through these issues [disagreements arising from contract interpretation] if you desire [we] would be amicable to a no-fault termination of this agreement at a date to be mutually agreed upon, provided that arrangement can be made for the City to take back possessionof their old equipment."

Hmmm ... 

On May 30 the City Manager responds back, 

"I appreciate the offer to have a no fault termination to the contract, however at this time the City is committed to making Inland successful and the residents satisfied with the service."

To which the contractor indicates that with this being the case, they will need to charge extra for certain services that were included in the old service but not in the new contract.

In other words,
the contract will need to be renegotiated at a higher price.

Click here to see this correspondence.



Two questions.

First, was anyone at Council notified of this offer?  If not, why not?  They authorized the City Manager to enter into the contract, and this is a significant development.  It would seem appropriate, therefore, for them to be notified of the contractor's offer, rather than to have the City Manager unilaterally decide for them.

Second, what is the City going to do?  They guaranteed us that our service and sticker fees would not increase for 5 years, based on the fixed cost contract.  But now, the cost is going to increase, either because the city will indeed pay the contractor more, or because certain services will be done by city employees. 

Just how much is it going to go up?

Based on data in the letters, at least $150,000 per year just to pick up recyclables and yard waste for those residents who get medical exemptions or who live on private drives.  This was included in the old service but not in the new contract.

Add this to the annual $57,000 net loss to the city because they've gone out for bid to pick up paper for private businesses (that's another big issue ... why should my tax dollars be used to pay for a private company's trash removal?) and yearly $12,000 that we're paying for medical exemptions not covered, plus an unknown amount to pick up used motor oil and batteries.  Again, all of these were included in the old service but not in the new contract.

The increased costs could add up to at least $1,000,000 over 5 years.

This new service seems to be losing its cost advantage rather quickly.

Another problem?
 
In the June 10 letter, the contractor states that they will collect from private drives if "a disclaimer is provided that the Company will not be held responsible for any pavement damage issues."

Hmmm ... they recognize that the trucks they are using has the potential to damage residential driveways.

How much is THAT going to cost these residents?
 
Week 14 - Day 2

Hmmm ...