Waste Management Inc. has settled with the city of Tampa, Fla., for $1.2 million for overpayment by the city for commercial solid waste collection.

The city also said in a news release that it will release a formal invitation for all commercial haulers to bid on a new contract. Tampa has extended Houston-based Waste Management’s existing contract by three months to June 30, pending approval by city council.

“Waste Management is pleased to have reached a mutually agreeable resolution with the city of Tampa on its overpayment to us and refund amount due, along with the extension of our contract through June 30,” said Dawn McCormick, manager, community affairs, for Waste Management Inc. of Florida, in an e-mail response. “We look forward to participating in the bid process and the opportunity to continue servicing our commercial customers in the city.”
The city said it overpaid Waste Management by $1.4 million for waste collection between 2008 and 2012, according to a preliminary audit. The company said the overbilling began when the city gave Waste Management inaccurate information at the start of the billing process, confirmed Ali Glisson, public affairs director for the city, in an earlier interview.

The city eventually agreed to Waste Management’s settlement offer.

The problem occurred in cases where a new business replaced an old one, but Waste Management would continue to bill the city for both businesses, according to Mike Herr, Tampa public works and utility services administrator.

Waste Management picks up 40 percent of the city’s commercial solid waste.