Monopolies still exist

I had a very painful conversation with the City of Riverdale today.  We are proposing to perform a demolition job with our own equipment; excavator, roll-off dumpsters and trailers to haul the trash.  I downloaded the demolition permit from the City’s web site only to find they have an exclusive disposal arrangement (monopoly) with Republic Services, a large national waste management company.  I interpreted (which means I read the ordinance) that the intent of the ordinance was to ensure that property owners, especially multi-family property owners, don’t turn their property into slums by mandating trash service through the city.  The city doesn’t agree with my interpretation.  ALL hauling must go through Republic, even though they don’t offer tractor trailer service.  Republic can’t provide what I deem necessary for my customer, large scale hauling, and then forces me and my client to incur $19,000 in additional costs for a project I can deliver for lower disposal and less time on the job.

The City of Riverdale has negotiated hauling rates for its citizens, and any other contractor that comes into town, through Republic.  Republic can charge $199.98 per haul plus $42.80/ton, a $100 per container delivery fee AND $3/day rental/container.  For short term light loads of trash, the pricing is not awful.  You could certainly do better it isn’t awful.  A  two ton load will cost you $285.58 plus the $100 delivery fee.  A typical flat rate for a roll dumpster in the Atlanta metro region is $375.  This will usually include up to 8 or 10 tons of weight.  But if you have heavy demolition loads in the city of Riverdale you are going to pay dearly.  $42.80 per ton x 10 tons is $428 for disposal alone.  Then add on $199.98 for the haul and $100 for the delivery.  That one dumpster/container costs $727.98.  But wait there’s more.  Now if you need to keep the container for five days tack on another $15, $3/day x 5 days for rent.   $375 flat rate is looking pretty good now.

How does the city enforce this?  The demolition permit will not be issued without an in place agreement with Republic.  The City does not care that an entity that pays thousands of dollars in property taxes is now going to pay 65% more on a demolition job to clean up a blighted apartment just because we have to use their chosen monopolistic vendor.   Government at its best, right?  And then government officials wonder why they are so detested.  This is the best pricing they could negotiate for an entire city?