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City retains over $1 million in settlement with former waste management provider

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A lawsuit filed by Inland Waste Solutions against the Germantown has been resolved through court-mandated mediation.

To resolve the dispute without further litigation, and resulting legal costs, the city will release $275,000 of the $1.3 million withheld during the waste management company’s contract. The settlement agreement was approved by Aldermen during the Jan. 9 meeting of the Board of Mayor and Aldermen.

The proposed settlement was reached during a second court-ordered mediation session on Dec. 13.

During the period of time that Inland provided waste collection services to Germantown residents, the city withheld more than $1.3 million from Inland invoices submitted to the city.

Of this, $536,647 was used to cover expenses related to contractors hired to supplement Inland’s service, additional landfill fees and internal customer service representatives hired to handle the large number of complaints from residents.

In January 2016, Inland sued the city to recover the funds withheld. In response, Germantown counter-sued Inland for $256,655 in additional expenses the city incurred.

To resolve the dispute, the parties tentatively agreed that Germantown would release to Inland $275,000 of the $1.3 million withheld. The city will retain the remaining $1,037,417. Action by the BMA solidified the settlement.

The settlement allows the city to recover the full amount of actual expenses incurred, while retaining an additional $500,770 in the sanitation fund.

These additional dollars are being used to reduce the service cost to each Germantown household of the service now being provided through Waste Pro of Tennessee.

After stepping in a month early as the city’s sanitation contractor, Waste Pro has provided excellent service levels for Germantown customers, according to city sources.

The money will also help to keep the sanitation fund healthy while allowing sanitation rates to remain the same through the entire five years of the current contract with Waste Pro.