The city of Fayetteville is going to have to pay an extra $557,000 a year for trash processing, after their current processor, Cherokee Nation, decided to back out of their contract.
The Cherokee Nation told the city they will stop processing the city's trash at the end of September. According the Cherokee Nation they have been losing money on its solid waste services. "It's costing us more to remove the trash than we're paying," said Mike Miller, spokesperson for the Cherokee Nation.
The Cherokee Nation originally signed a five year contract with the city in 2006 for $1.2 million dollars a year. Under that contract the Cherokee Nation is responsible for running the Fayetteville Transfer Station.
After the city garbage trucks pick up trash from people's homes it's taken to the station, where it is then transferred to tractor trailers, which then haul the trash to the landfill in Tontitown.
"This allows the trucks to never leave the city of Fayetteville, they come dump off the trash and get back out to pick up more trash at residences and businesses," said Brian Pugh, Waste Reduction Coordinator. By taking over operations, the city has to hire an additional employee, lease their own equipment and pay the hauling company.
"From the city's perspective this is a breech in contract," said Paul Becker, Fayetteville Finance Director. "We certainly will seek damages and try to work something out with the Cherokee Nation and pursue whatever course we have to." Miller says he hopes the Cherokee Nation and the city can come to an agreement. "We are hopeful and optimistic that we will have a good relationship with the city." Said Miller
He also said the Cherokee Nation has saved the city hundreds of thousands of dollars. "The Cherokee Nation will subsidize that for a while but we can't do that forever," said Miller.
The city says the extra costs will come out of the solid waste fund, and not affect residents. "At this point in time we do not anticipate having to increase any type of fees," said Becker.
Becker said residents should expect to receive the same quality service.
The Cherokee Nation told the city they will stop processing the city's trash at the end of September. According the Cherokee Nation they have been losing money on its solid waste services. "It's costing us more to remove the trash than we're paying," said Mike Miller, spokesperson for the Cherokee Nation.
The Cherokee Nation originally signed a five year contract with the city in 2006 for $1.2 million dollars a year. Under that contract the Cherokee Nation is responsible for running the Fayetteville Transfer Station.
After the city garbage trucks pick up trash from people's homes it's taken to the station, where it is then transferred to tractor trailers, which then haul the trash to the landfill in Tontitown.
"This allows the trucks to never leave the city of Fayetteville, they come dump off the trash and get back out to pick up more trash at residences and businesses," said Brian Pugh, Waste Reduction Coordinator. By taking over operations, the city has to hire an additional employee, lease their own equipment and pay the hauling company.
"From the city's perspective this is a breech in contract," said Paul Becker, Fayetteville Finance Director. "We certainly will seek damages and try to work something out with the Cherokee Nation and pursue whatever course we have to." Miller says he hopes the Cherokee Nation and the city can come to an agreement. "We are hopeful and optimistic that we will have a good relationship with the city." Said Miller
He also said the Cherokee Nation has saved the city hundreds of thousands of dollars. "The Cherokee Nation will subsidize that for a while but we can't do that forever," said Miller.
The city says the extra costs will come out of the solid waste fund, and not affect residents. "At this point in time we do not anticipate having to increase any type of fees," said Becker.
Becker said residents should expect to receive the same quality service.
