City OKs garbage deal with Southern Central

After shunning the idea of opening up the transfer station, the city has agreed to enter into a five-year contract with Southern Central Iron & Metal.

The contract between Southern Central and the city will last until the end of June, 2011. In that time, the business would be paid $35.75 per ton for garbage handling, with an estimated 10,000 tons disposed of yearly.

The decision came after some reservations about the fuel adjustment costs within the contract were raised.

?There is a surcharge for the increasing diesel fuel costs,? said Alderman Bobby Kirby, ?but what happens if the cost were to go down??

As explained by Don Hennessee, the owner of Southern Central Iron, the surcharge will be added on the price per ton if the cost of diesel fuel reaches $3.

?If the cost of fuel gets below $2, then the rate per ton will be reduced,? said Hennessee. ?When I made this proposal, fuel was $2.50 a gallon but it?s expected to rise.?

A surcharge of 1 percent will be placed on the price per ton once diesel fuel costs reach $3 per gallon. For every penny over the $3 mark, a .05 percent increase will be added to the 1 percent surcharge cost.

After questioning by Mayor Royce Davenport, Hennessee said he would use bio-diesel fuel if possible.

?I would have to do some research into it, but I don?t think there would be a problem with it,? Hennessee said. ?From my understanding it burns a lot cleaner, but there will have to be adjustments to the equipment.?

The city voted unanimously to approve the contract during its last board meeting.