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The company is hoping to thwart Mayor John Peyton's proposal to extend Waste Management's contract, in place since 1991. Peyton has said the renegotiated contract with Waste Management has produced the best deal for taxpayers, which Republic refuted in a letter to Jacksonville City Council President Ronnie Fussell on Monday.
"We believe we can do a better job," the letter, signed by Area President Guy Thompson said. "We believe we can save you money but, most importantly, we believe that a contract of this size and scope must be evaluated through a public and transparent process to ensure the best deal for citizens."
Mayor John Peyton had not read the letter Monday evening but a staff member briefed him on its contents. He said the letter outlined the same arguments Republic has been making for months and he doesn't see a reason to abandon the negotiations with Waste Management, Peyton said.
"I have a deal on the table that is quantifiable," he said. "Until they [Republic] show me something that is quantifiable, it's an empty promise."
Republic says it won't give specific numbers unless it is submitting an official bid. Otherwise the company stands to lose its competitive advantage by sharing what it considers trade secrets.
Republic's letter admits that the deal reached between Waste Management and the city, worth an estimated $750 million over the next 35 years, results in short-term savings compared to the current agreement. But the company believes there could even be more money saved if there were a competitive bidding process.
Republic also refutes the mayor's argument that there are concessions in the reworked agreement that no other company but Waste Management would be willing to sign onto. Republic would be willing to maximize landfill capacity and assume environmental liability for the existing landfill built by Waste Management if the city asks it to, the letter said.
"I am certain Republic Services will submit a very aggressive competitive bid at a substantially lower bid price than the current agreement, with savings of millions of dollars," Thompson wrote.
Fussell said Republic has only put in writing what it has been saying to council members ever since the mayor's plan to renegotiate with Waste Management surfaced last fall.
Fussell has said repeatedly that he feels the contract should be put out to bid. He said one of the only ways he will change his mind were if the mayor proved that the city was contractually obligated to allow Waste Management to continue operating Trail Ridge.
The Council Auditor is preparing a report based on its analysis of the 125-page contract the mayor negotiated with Waste Management. The council will meet to discuss the proposal, likely early next month.
Waste Management spokesman Chuck Dees said the company has not decided if it will file suit if the City Council refuses to approve the new contract and forces the mayor to put Trail Ridge out to bid. He also wouldn't say if the company would submit a proposal if the city did that.
"We never speculate on those kinds of things," he said. "We just have to go through this process and see where we end up, and the company would make a decision."
Dees said he understands why Republic is pushing for the contract to be opened to bidders. "Republic has nothing to lose and everything to gain while the city of Jacksonville taxpayers have a lot to lose," he said. "It's a risk that Republic is asking them to take."
Councilman Bill Bishop said Republic is trying to create an economic opportunity by questioning the mayor's decision to consider Waste Management as sole-source provider of landfill operations. Bishop was not in favor of the mayor's proposal and said Republic's letter could provide further evidence.
"If what they're saying is accurate, then I don't see how we can do anything but bid this thing out," he said.
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