May 18, 2006

City’s Trash Contract To Be Rebid

The roughly 800 customers in Memphis that receive residential trash collection services via the city will have to wait until June to learn if their rates will go up, and if so, how much.

A week after Onyx proposed a price increase in the company’s new three-year contract proposal, the company was back in a second meeting with the Memphis city council on Friday, May 12th to try to reach an agreement.

Council members indicated the company had offered some concessions on the scheduled price hikes in the second and third years of the deal. However the board of aldermen voted to seek additional bids for the service to insure that the customers had the most affordable service available.

Cole Morgan, a collection service headquartered in Keokuk, IA, is expected to bid on the city’s contract as is BFI Waste Systems of Quincy, IL in addition to Onyx.

Cole Morgan currently serves Kahoka where residents pay $7.50 a month.

The council indicated it was seeking a similar deal to Lancaster where Onyx recently signed a new three-year pact with $8 monthly residential rates and no fuel surcharge.

Representatives indicated the Memphis contract offer was higher due to the additional mileage to and from the company’s Macon base.

The bids will be considered at the regular June council meeting. The current Onyx service contract will expire June 30th.

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