Modify the Contract?!?

FOR IMMEDIATE RELEASE:

Contact: Michelle Gleba, Communications Manager
(573) 634-6377

Sept. 16, 2010


City Council to consider amendment to trash contract

Jefferson City, Mo. – At the Sept. 20 Jefferson City Council meeting, the council will hear the
introduction of an ordinance that will prevent a potential breach in the city’s trash contract. Such a
breach would have caused an increase in the residential trash base rate.

The proposed ordinance will authorize the city to amend its current contract with Allied Waste
Services to satisfy a discrepancy in the number of single-family and duplex households served.
When the city entered its six-year contract with Allied Waste Services in November 2009, it
estimated the number of single-family and duplex households served would be nearly 14,000. This
number was based on 2000 U.S. Census data. The actual number of single-family and duplex
households served turned out to be approximately 12,600.

The amendment will reduce the road use fee and future planning fee the company pays the city
under the current contract by $320,000 for the first and second year of the contract. For each
subsequent contract year, the amount will be determined based on average Consumer Price Index
increases or decreases. If the total number of households served by Allied Waste falls under
11,000, the city and Allied Waste will renegotiate the agreement.

Nathan Nickolaus, city attorney, said the amendment allows the city to continue operating a
citywide trash and recycling collection service at the lowest possible rate for all residents. He said
if the city were to face a contractual violation with Allied Waste and had no trash service,
residential rates could increase from an average of $15 per month to $25 per month, the average
amount paid by residents who live in unincorporated areas of the county.