Contract limited rate increase; fee hike likely

Allied Waste is canceling its contract to be the “preferred provider” of residential trash pickup in Peachtree City.

The move likely signals a hike in Allied’s pickup rates because the preferred provider contract specifically limits how much Allied can increase its rates. The company serves approximately 75 percent of city residents, city officials said.

The contract will terminate April 30, which will return the trash pickup industry to free market status. The city will no longer be involved with issues over rates or customer service, officials said.

Currently three companies provide trash service in the city: Allied, AllSouth Robertson and Peach State Disposal.

In January, a stink was created when city staff proposed creating a garbage franchise which would have forced all city residents to use the same provider. At the time, officials said such an agreement would stave off significant rate increases and give the city the power to levy fines if complaints aren’t handled appropriately.

But a citizen uprising over the deal ultimately led the City Council to turn down the proposal, which called for trash to be picked up only one day a week instead of two days in an effort to keep trash trucks off the roads.