GARY | Residents of Gary's Miller section have filed a lawsuit questioning the legality of the city's move to privatize its garbage collection and add a new fee to the service.

Lawyers for the Miller Citizens Corporation and 28 Miller residents are seeking an injunction to stop Mayor Rudy Clay from handing over garbage collection in the city to Allied Waste Services of Northwest Indiana.

John P. Reed, an attorney for the Miller group, said the city failed to put what amounts to a $5.5 million contract up for competitive bidding, as required by state law.

The suit also opposes the imposition of garbage collection fees ranging from $7 to $52 per month per residence.

City residents previously paid no separate garbage fee.

The cost of garbage collection, which Mayor Rudy Clay estimated to be about $41 per household, was financed through the city's property tax levy. Clay said he hopes Allied can cut the cost of garbage collection to taxpayers in half, but said the fee is needed to offset property tax cuts mandated by the state Legislature.

No date has been set for a hearing on the suit, which is filed in Porter Superior Court Judge Thomas Webber's courtroom.