Friday, December 9, 2011

WLocks selectmen recommend switching trash contractor


By Harlan Levy
Journal Inquirer
Published: Thursday, December 8, 2011 12:04 PM EST
WINDSOR LOCKS — The selectmen voted 2-1 on Tuesday to recommend that the town change trash companies and sign a five-year contract with the private international waste-to-energy company Covanta Energy.

Covanta won the nod over the Connecticut Resources Recovery Authority, which wanted a new long-term deal.

First Selectman Steven Wawruck, who sits on the CRRA board along with other towns’ chief executives, advocated for CRRA’s 15-year contract, featuring a $59.50 per ton first-year garbage tipping fee that the town would pay at the Hartford incinerator. CRRA’s current fee is $69 per ton. The tipping fee in ensuing years is to be determined, but, Wawruck argued, “It has the most cost savings that we can derive long term … and you’d probably see the tipping fee go down after Year Five.”

Covanta’s first-year price is $58.75. It will also donate $10,000 to the town for “outreach funding,” which will go directly into the General Fund. Convanta has no minimum tonnage requirement and will pay the town a guaranteed $10 rebate per ton of recyclables. After the first year the town will net $21,000 in savings over the CRRA plan. In addition, Covanta has a ceiling on prices going up in each of the ensuing years of a maximum 4 percent.

“After Year One everything is supposition. There’s no guarantee by either of them,” Republican Selectman Dennis Gragnolati said. “But there’s more stability in the Covanta deal because it has the ceiling.”

Also, Gragnolati said, “We’re looking at another tight budget year, and that $21,000 would be nice.”

Republican Denise Balboni objected to CRRA’s 15-year term. She also questioned whether it is a conflict of interest to have town officials serve on CRRA’s board.

“I find it troubling that the municipalities are represented, Yet they’re the very people who are going to sign contracts for cash,” Balboni said. “It seems like such a prohibitive conflict of interest … to have the hens deciding what the henhouse will be.”

Wawruck responded that his roles are not in conflict. He acts “in the best interests of the state, and that will come down to the town,” Wawruck said.

Wawruck also warned his colleagues that Covanta could add a significant fee if Massachusetts, where it dumps the garbage, enacts a surtax.

“Every state is looking at every angle now” to raise money, Wawruck said.

If CRRA were to shut down before five years, when the Covanta contract expires, Covanta could see that as an opportunity to raise its rates, he said.

Nevertheless, the board voted 2-1 in favor of the Covanta contract as long as it specifies that the town will not pay for any out-of-state surcharge on Covanta.

Covanta has other places to take the trash, Balboni assured the board.

Town Attorney Scott Storms will review the contract before a town meeting is scheduled to get voters’ approval.

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