Over the past few months we have been experiencing challenges with our trash and recycling service provided by Republic Services. The importance on a reliable trash service is not apparent until it becomes a challenge to your personally. Otherwise, everyone goes about their business not thinking much about it. Many thanks go to our HOA VP of Contracts, volunteer Stan Thurber, for taking homeowners’ calls and taking action to assist homeowners with Republic to get their trash picked up.
A few months ago, the HOA received a letter from Republic asking to double your rates and to go single billing to the HOA. After consulting others, we felt this is a breach in our current contract and Stan took the action to respond. We are certainly frustrated like you are given we have not received an official response or explanation as poor service continues.
A representative from Republic Services showed up at our June Board meeting requesting to address the Board. He proceeded to explain the problems Republic is having from a business perspective. In summary, their current business model is not profitable in the Houston Area. The key items were: (1) more than a 10% delinquency in homeowners paying their bill and (2) Memorial Northwest produces well above the average of other comparable subdivisions. Homeowner’s and Board Members had a great question and answer discussion with the Republic Service representative.
From my perspective as a long-time corporate America employee, this falls into the category of a company suffering from poor leadership by not staying on top of our performance metrics and not focusing on customers; profitability is achieved only when you master both.
We all have paid our trash service bill through the next quarter. Republic stated they were going to honor their commitment to serve our community. They have also promised to provide the last date of service as they wish to terminate our agreement. Stan has been working on finding a quality company to serve our community. Once this has been approved, we will communicate the transition plan and the name of the new service provider.