H&B awarded $94,000 in dispute with Harrodsburg

July 28, 2004|ANN R. HARNEY

HARRODSBURG - Attorney Brad Guthrie picked up a check for more than $94,000 Tuesday for his client H&B Sanitation. The check was for the award agreed to in a lawsuit between the garbage company and the city of Harrodsburg.

The lawsuit, filed by H&B Sanitation in February 2003, claimed that from 1993 through a three-year contract signed in 2001, the city failed to pass along the entire amount due the Harrodsburg company. H&B stands for Harrodsburg and Burgin.

The lawsuit said contracts between the city and H&B promised the company would be paid the amount that the city charged residential customers. The lawsuit said the city breached the contracts by deducting a fee for billing and collecting.

The city withheld 5 percent of the $11 monthly fee for pickup and disposal inside the city and 9.8 percent for the same service to residents outside the city, the lawsuit alleged.


The city counter-sued H&B, claiming the company was guilty of breach of contract for not picking up garbage at the back of homes, part of the contracts between the city at H&B, but rather only picked up garbage that was placed at the curb.

It appeared that some people's garbage was picked up behind their houses while others was not.

"Fifty-five percent and up of garbage is picked up at the curb," City Administrative Officer Ed Music said after a Harrodsburg City Commission meeting in June.

The city also claimed that H&B agreed to two clean-up days a year but refused to provide citywide pickup for items not generally accepted during the weekly pickup.

The city's answer and countersuit asked that H&B's lawsuit be dismissed. Circuit Judge Darren Peckler did not agree and in March dismissed the countersuit.

Eddie Burton, whose family owns H&B, did not submit a bid for the new contract the city offered in June. That ended a 27-year relationship between the city and the garbage collection company. Burton said the city's business amounted to about 80 percent of H&B's business.

Harrodsburg City Commission accepted a bid from Republic Services of Kentucky, which does business as M&M Sanitation, in June. The contract is worth between $8-$15 million. "Its a big contract," Music said.

M&M agreed to the 5 percent deduction for residential customers in exchange for the city billing and collecting garbage fees. It also agreed to a 2 percent deduction "for the privilege of a long-term contract."

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