“This is a big win for the residents of New Orleans,” Landrieu stated. “The negotiations were guided by three core principles. First, I honored my fiduciary responsibility to get a good value for taxpayer dollars at a price the City can afford. Second, I honored my belief that government has an obligation to support local businesses. And third, I honored my commitment to good customer service by providing curbside recycling, which we heard loud and clear, is a priority for our citizens.”
The renegotiation of this contract brings the City of New Orleans into the regional average for sanitation collection services. The range spans from $13.31 to $20 for monthly, per unit collection services.
The key points of the new agreement are as follows:
- $17.99 per household monthly, down from $22 per household;
- Curbside recycling now included;
- Richard’s and the City will collectively agree on a methodology for determining and monitoring the house count;
- By advanced mutual consent of the parties, Richard’s will receive only a one-year extension through December 31, 2014, to its current contract reducing the 3-year extension granted by the previous administration;
If this contract was not renegotiated or rebid, the city would have paid $22.00 per household per month without recycling in 2011 for Area 1.
Richard’s Disposal currently serves “Area 1” of the city (current house count 66,525), which includes Algiers, Uptown, Garden District, and Mid City.
In the midst of the City’s budget crisis, Richard’s is the latest in a long list of contracts renegotiated by the city. In August, the Landrieu administration successfully renegotiated the SDT Waste & Debris Services, LLC sanitation contract, saving the city $110,000 a month or $1.32 million annually. Last month, Mayor Landrieu reached an agreement with Metro Disposal to reduce their monthly household cost from $18.15 to $15.99 with the addition of recycling.
In addition, the Landrieu Administration has also renegotiated and cut millions from other contracts:
· Saved $11 million on its contract with MWH by building capacity internally
· Saved $2 million on contracted staff augmentation IT services
· Saved $450,000 by Law Department reducing outside counsel
· Saved $180,000 by utilizing volunteer hearing officers
· Saved $300,000 by cancelling Finance department audit contracts
· Saved $300,000 by reducing PFM’s consulting and Budgeting for Outcomes contract
· Saved $1 million by reducing the contract for basic street maintenance
· Saved $250,000 on contracts for tree trimming and grass cutting for Parks & Parkways
· Saved $100,000 by eliminating the City Hall Xerox copy center
The renegotiation of this contract cancels the bid solicitation for trash collection services for Area 1 due December 6, 2010.
(Landrieu Press Release)