The amendment changes the original contract, voiding a fuel surcharge placed by Waste Management as well as lowering a 12 percent franchise fee that was implemented by the city on all commercial customers to 5 percent.
This will drop the original cost of $5.50 per cubic yard to $4.78 per cubic yard.
The city was unhappy with the waste service when it was time to review the original 20-year contract, which comes up for assessment every five years. The city council tried to get out of the deal by voting to bid out the service in August 2005, claiming the council was unhappy with Waste Management. Legal pressure pushed the council to abide by the contract even though the members were not satisfied.
Talks with Waste Management began almost immediately when the city realized that a 3 percent CPI was added by Waste Management along with their fuel surcharge and the city's franchise fee. This drove up the price by 18 percent for commercial customers. The city received numerous complaints about the increase, which was seen by some customers, councilmen and the mayor as gouging.
In April the Russellville City Council voted once again to withdraw from the contract with Waste Management, citing that negotiations weren't working along with contractual violations the city claimed were being made by Waste Management.
This hard ball action brought the two entities back to the mat and the outcome was a win for the commercial customer, according to Councilman Lanny McPherson. “This is the best thing we can do for our customers right now,” said McPherson at Tuesday night's council meeting. “I wish we could get it even lower but we only have five more years to go with this contract.”
McPherson thanked attorney Fred Greene, who was at Tuesday's meeting on behalf of Waste Management, for his work towards bringing about a compromise. Greene serves as local attorney for the waste service. Greene in turn thanked the Russellville City Council, saying, “You have been a hands-on council.”
Greene introduced Jennie Bobbett at the meeting, saying she would now be the local face and name that customers could call if needed. Greene said he knew one of the city's concerns was having to deal with all the customers' complaints.
Bobbett gave numbers for customers to call if they have problems. They are 726-3716, 726-1314, 726-9270 or 270-847-0166. They can also e-mail Bobbett at jbobbett@aol.com
The effective date for the change, according to Greene, will be June 1.
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