City of NOLA reaches a proposed settlement with Metro Service Group over contracts
NEW ORLEANS (WVUE) - The City of New Orleans reached a proposed settlement with Metro Service Group to resolve the trash pickup contract issues.
A federal bankruptcy judge mediated the deal, which will result in Metro’s bankruptcy case dismissal. All contracts between Metro and the City have been suspended and will be terminated when the bankruptcy court approves.
As part of the settlement agreement, the City agrees to pay $3.9 million to the Metro estate, and Metro Service Group will make an asset purchase payment of $2.2 million.
Mayor Cantrell said in a statement:
“Since the fall of 2021, the City has been transparent in its process to solicit and award new collection contracts to replace Metro as one of our service providers for several of our households. With these legal proceedings now behind us, we are excited to redirect our focus solely on our long-term investment in cleaning up this City holistically and now fully transition to new collection contractors who have already began delivering the long overdue increased level of service and overall quality of life residents deserve. Since the new companies started rolling through neighborhoods on November 7, residents have experienced enhanced services, routine and timely pickups, the return of curbside recycling and the introduction of new vehicles and technology all designed to improve the quality and consistency of service. The City will continue to deliver meaningful results that address our garbage crisis and place the needs of our people first.”
Metro filed for bankruptcy in October amid a dispute with the city over payments and quality of service.
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