A solid waste company is suing Richmond over officials’ refusal to sign a five-year contract worth millions for the management of the city’s two trash centers, despite City Council okaying the agreement earlier this fall.

This October, Council voted unanimously to grant Meridian Waste Virginia, LLC the franchise to manage the Hopkins Road Transfer Station and East Richmond Road Convenience Center. Waste Management of Virginia, which currently manages both sites, also put forward a bid. 

But although Meridian quickly signed the franchise agreement and put forward a required $250,000 performance bond, the city has refused to sign the document and this November asked City Council to reconsider its decision. A vote is expected Dec. 9. 

Now Meridian is suing, arguing that the October vote legally granted it the contract and Chief Administrative Officer Lincoln Saunders “has no discretion at this juncture to withhold his signature.” In an earlier letter to the city, the company says that the agreement it signed “is a legally binding contract.” 

Margaret Ekam, a spokesperson for the city, said Richmond is “unable to comment on ongoing legal matters.” 

Mary O’Brien, Meridian’s chief marketing officer, similarly said that “due to pending litigation, Meridian Waste is not able to speak publicly regarding the lawsuit against the City at this time.”

“We are hopeful and look forward to a fair and just hearing before the proper jurisdictional authority in the very near future and to servicing the citizens of Richmond with quality and safe environmental services,” she wrote in an email. 

The two bids for the franchise were opened at City Council’s Oct. 15 meeting. Waste Management’s proposal had an estimated cost of roughly $3.7 million, while Meridian’s was about $4.4 million. Both included a “host community fee” that would be paid to the city for use of the land, with Waste Management offering $5.05 per ton and Meridian $1 per ton with a minimum monthly payment of at least $12,000. 

Department of Public Works Deputy Director of Operations Torrence Robinson recommended that Council award the bid “to the best and highest offer as outlined in state code.”

“I think the highest offer was Meridian Waste,” he said. 

Unlike some franchise agreements that only provide a local government revenue for the right to conduct business, the bids for the waste management facilities represent payments the city will have to make to the company. 

Meridian’s lawsuit says that two days after the vote, the company received a letter from DPW Director Bobby Vincent stating the department had “incorrectly concluded that the bid that was most favorable to the City was the Meridian bid” and “the City has not entered into a franchise agreement.” 

While Meridian argues “the Department of Public Works has no authority to award or cancel Meridian’s franchise,” the city has blocked the company from taking any further steps to begin managing the two sites. The original agreement would have had Meridian take control Dec. 1.

Ekam said the city in the meantime has extended the current agreement, which is with Waste Management of Virginia.