In one fell swoop, Gwinnett County can settle four lawsuits, assign five companies to haul garbage and set rates residents will pay for trash service over the next 18 months.
The county announced Friday morning it had reached a settlement with five haulers who had sued over the county's failed 2008 solid waste plan. Those same five haulers were each granted exclusive rights to service one of five zones established for residential trash service as part of the settlement. The contracts are for eight years with a two-year renewal option.
The Gwinnett County Commission will vote on the settlement at its monthly zoning meeting Tuesday.
The announcement ends more than a year of litigation and with it the threat of more than $80 million in alleged damages against the county.
"I'm pleased with it," said County Commission Chairman Charles Bannister. "It's turned out exactly as we have been discussing and trying to resolve."
Under terms of the settlement, households in unincorporated Gwinnett will pay $17.86 per month for trash service. Of that, the county is charging $1.25 in administrative fees for postage, customer service and education. With about 150,000 unincorporated households, that comes to $2.25 million.
Aaron Bovos, county chief financial officer, said the county has not worked out all the details of how the plan will be managed, but he anticipates it may require hiring some staff.
The contract, which goes into effect July 1, includes collection of trash, a variety of recyclables, large household items and appliances. Charges would appear on homeowners' property tax bills. The schedule calls for residents to pay $321.48 this year for service through the balance of 2010 and all of 2011. Residents seeking removal of yard waste would pay $10 a month directly to the hauler servicing their zone.
Bovos said the fees were not bid but were arrived at by comparing rates of comparable counties and from data provided in the county's $131,000 solid waste program assessment prepared by consulting firm R.W. Beck
The settlement comes 15 months after Sanitation Solutions and Southern Sanitation filed suit over Gwinnett County's 2008 solid waste plan, claiming the plan's non-profit administrator, Gwinnett Clean & Beautiful, improperly awarded contracts. Republic Waste later joined the lawsuit.
Two more haulers, Waste Pro and Advanced Disposal, filed suit seeking $40 million in damages each after a judge stopped the county from implementing the plan. Both had been told they were awarded contracts and had been in the process of setting up operations to service up to 75,000 households each.
The settlement provides Sanitation Solutions with 10,000 customers and Southern Sanitation with 13,000. Republic, Waste Pro and Advanced would each get a third of the remaining households.
In addition, Sanitation Solutions and Southern Sanitation will receive a settlement of $50,000 each from Gwinnett Clean & Beautiful.
Gwinnett County now faces only one lawsuit related to the 2008 solid waste plan.
Waste Industries filed suit in U.S. District Court in December claiming county officials were on the verge of creating an "illegal and unconstitutional solid waste hauling program" as a way of settling pending litigation with the five haulers. The attorney for Waste Industries did not return phone calls.
The new solid waste plan already has drawn criticism from some residents who have argued the county is stifling free enterprise and depriving residents of choosing their own garbage service. But Friday's settlement riled frequent opponent Don Shaw of Lawrenceville.
"Get ready for more lawsuits," he said. Because there was no bidding process, he added, other legitimate haulers were deprived of a chance to do business in Gwinnett County.
But Bannister said naysayers will continue to bash the plan, even though surveys have shown most residents want cheaper prices and fewer trucks in their neighborhoods. He also said if the commission approves the settlement Tuesday, it will provide a comprehensive plan of waste collection and recycling to everybody in the county, including those who have not been participating.
About the Author
The Latest
Featured
