The city of Cape Coral and Waste Pro have come to an agreement, ending a lawsuit over funds withheld by the city in a garbage and trash collections dispute.

The city and its solid waste collections vendor came to an agreement that allows the city to retain $1.1 million in cash and other valuation while remitting $1.7 million owed to Waste Pro.

Cape Coral City Councilmember Jennifer Nelson pulled the item from the consent agenda to respond to misinformation she says has been out there regarding the agreement.

City Attorney Dolores Menendez said while City Manager Rob Hernandez signed the memorandum of understanding for the purpose of mediation, the document did not bind the city to an agreement. City Council held the final say.

“I heard one resident say that this was a done deal and signed and that is not the case,” Menendez said. “We’re in mediation because when the city withheld the funds, Waste Pro filed suit against the city, with that came costs. The council needs to determine if this is the most cost effective and judicious means of resolving this.”

Hernandez said there was $2.6 million held in dispute when the two parties entered into mediation.

The money was comprised of administration charges imposed on Waste Pro for performance issues and for reimbursement for using city labor to assist Waste Pro in removing yard waste, as well as franchise fees.

“The city is being reimbursed in full for its services for $308,000 and being made whole regarding franchise fees for short of $184,000,” Hernandez said. “The actual retained value to the city will be $1.1 million.”

In the agreement, Waste Pro agrees:

n That the city shall retain $308,069.81 the city is currently holding, representing costs incurred by the city for staff and equipment expenses while assisting in removing horticultural waste,

n That the city shall retain $183,727.50 from amounts the city is currently holding from payments due to Waste Pro set off from the 8.5 percent franchise fees on full invoice amounts,

n That the city shall retain $416,394 from amounts the city is currently holding, as a customer service rebate, that will be applied to the solid waste assessment.

To continue to provide bulk hauling services to the pilot bulk waste drop off site for the city until Sept. 30, 2024. Waste Pro will not charge for these services for the 2023 fiscal year, which has a value to the city of $240,334.

For the following budget year, the city will pay Waste Pro $240,334 for bulk hauling services at the pilot bulk waste drop off site in monthly installments of $20,027.83.

The city agrees to release the $1,732,628.54, which is currently being withheld by the city, to Waste Pro within 30 calendar days.

Within three business days of the release of the money, the parties will file a Joint Stipulation for Dismissal with Prejudice, ending the lawsuit.

Waste Pro has provided solid waste removal services for the city since 2010. The contract was renewed in 2020.

Since the renewal, however, there were issues with Waste Pro failing to pick up trash, and horticultural and bulk waste, some of which sat on the curb for weeks.

Waste Pro said it was from a lack of drivers as the company was unable to employ enough of them to do their routes.

In the wake of resident complaints, the city started fining Waste Pro $250 per day per incident, which soon ran into the hundreds of thousands of dollars.

Waste Pro then sued the city for breach of contract.