Southern Central Iron and Metal will no longer own the solid waste aspect of its business. Santek Waste Services, Inc. of Cleveland has acquired the solid waste part of the business, located at 4530 Manchester Highway.
David Hollinshead of Santek and D.J. Hennessee, owner of Southern Central, made the announcement during a county Financial Management Committee meeting Thursday.
Hennessee said he has agreed to stay with the company for six months and assured committee members the business will not be losing any employees in the acquisition. In fact, the company will be hiring at least one new employee in the near future.
“David will be hiring my employees and I will be with the company for at least a minimum of six months,” said Hennessee.
Santek owns 18 disposal facilities in a nine-state region and employs 350.
During the meeting, commissioners voted on a new solid waste disposal contract which the county previously had with Southern Central. Hollinshead said nothing would change. He would honor the prior contract between Southern Central and the county.
A motion was made to accept Santak for the solid waste disposal with an addendum being drafted honoring the mileage from the facility to the dump site being within five miles of what the present contract states.
Hollinshead said a new facility may be built approximately two miles down the road in the future.
County Executive John Pelham said, “Our contract does have a clause and calls for that contract to be reassigned assuming that both parties, Mr. Hennessee and the county, agree. David has assured me the existing contract we have will be honored. None of our services will change. We will not recognize any difference.”
Hollinshead said, “Your solid waste has been going to my Rhea County managed landfill in Dayton, Tenn., throughout the purchase of Don’s assets. That will continue to happen. We would continue to work with the county, be a partner with the county and be a partner/ part of the community with this asset/ acquisition.
Hennessee said, “I will say the reason we were able to decrease instead of increase your tipping fee at the landfill was because of the agreement I was able to work with David and Santek that was able to lower that rate. With him giving me a discount, we passed it on so the county was able to save. At $2 less for the tipping fee, that saved about $40,000 a year.”