City terminate their contract with Red River | 963XKE | Classic Fort Wayne Rock

FORT WAYNE, Ind. (ADAMS) – Fort Wayne is finally officially cutting ties with its trash hauler, but it will cost the city nearly $2 million to send them packing.

The Fort Wayne City Council has approved a $1.9 million “transition agreement” with Red River Waste Solutions.

Fort Wayne has been looking to burn down Red River for months due to poor service and missed garbage pickups.

The agreement paves the way for Fort Wayne to hire a new waste company later this summer.

The City has released the following “Solid Waste Transition Plan”:

Purpose of the scheme
• To ensure continuity of solid waste service to the citizens of Fort Wayne
• Begin Red River’s transition plan to a future supplier
• Set a clear end date for the Red River Solid Waste Service in Fort Wayne
– June 30, 2022

Plan summary
• This agreement will provide continued solid waste service to residents
• The insurance company – ARGO – will pay $1.6 million to the City
• The City will pay an additional $300,000 for 6 months of continuous service
• All current monthly payments to Red River will continue to be made in arrears

Plan summary
• Subject to the following, fines will always be imposed by the City and paid by Red River
• Fines will be withheld from payments to Red River at the rate of $114.33/tonne for waste and $210.00/tonne for recycling collected by the City or its agents.
• The first fines of $50,000 for March, April, May and June will be waived
• A long-time local solid waste professional with substantial turnaround experience has been hired, at Red River’s expense, to oversee the Fort Wayne service

Effects of not passing
• Red River immediately shuts down solid waste operations in Fort Wayne
• Creditors move to liquidate assets – specifically, Red River trucks are removed from Fort Wayne and sold to pay Red River debts
• The City of Fort Wayne DOES NOT have the capacity to collect garbage from the 83,300 single-family households
• The contract with the new supplier cannot be implemented immediately

Final remarks
• The City pays $50,000 per month for a contract extension with Red River until June 30, 2022
• Residents have saved approximately $9.2 million in solid waste expenses since 2018, which equates to $110 per household
• This extension period will end Red River’s service and allowed Fort Wayne to bid on the contract and move forward with a new vendor, which will be fully operational by July 1, 2022.

Learn more here

Source link