"Hurricane Sandy changed the scenario."
It's something a lot of people across the state might have said about their plans after the Oct. 29 storm struck. On Tuesday, PMUA officials cited the tree-toppling event as the cause of a legal battle with a disposal company that balked when the normal flow of "vegetative waste" - brush, branches, and such - became tons of storm debris.
Just weeks before the storm, the authority changed its rate to drop off Type 23 vegetative waste to $6.50 per cubic yard, down from $28.54, in a bid to increase business from other municipalities, landscapers and contractors. From the PMUA facility on Rock Avenue, the waste went to Britton Industries in Lawrenceville for final disposal under a February 2012 contract that set a flat rate of $2,408.33 per month for the service.
The new rate was hailed in the authority's Winter newsletter as "a successful catalyst for new business" and the authority welcomed Garwood, North Plainfield and Green Brook as customers for drop-off of vegetative waste. But the same newsletter also said the facility had been "inundated" with 104,100 tons of trees, brush, branches and leaves from the storm.
As PMUA officials recounted Tuesday, Britton Industries stopped accepting such waste on Nov. 28, causing the PMUA to use another outlet, Generated Ltd., at a higher rate after a judge refused to grant immediate relief. Britton proposed a new rate of $20 per ton, which the PMUA countered with an offer of $15 per ton. No settlement has been reached and the PMUA board of commissioners authorized attorney Leslie London and Executive Director Dan Williamson to ask for a rate of $12 per ton, but empowered them to settle for the higher rate if necessary.
The proposal also includes extending Britton's contract for 45 days.
The commissioners present Tuesday - Alex Toliver, Carol Brokaw, Cecil Sanders and Malcolm Dunn by speakerphone - held an executive session before emerging to answer questions from the public.The proposed rate will generate about $2 less per cubic yard than the authority had been charging. Dunn expressed concern that the change could affect what the authority can "give back" to residents and also urged a tough stance in the negotiations. Williamson said there is always some give and take in negotiations, but Dunn said with a deep laugh, "I'm more interested in the 'take.' "
The contract with Britton Industries would have expired in February, not months later as mentioned at the Sept. 12 meeting. After the proposed 45-day adjustment, the contract for disposal of vegetative waste will be put out to bid.
Meanwhile, plans outlined in the PMUA newsletter include outreach to all nearby municipalities for drop-off of vegetative waste and another category known as bulk waste that includes household castoffs.
The PMUA will meet next at 6 p.m. on Feb. 12 at 127 Roosevelt Avenue for the annual reorganization, when officers including a chairman will be selected.
--Bernice
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Emphasis on the word "take".
ReplyDeleteAfter reading and rereading the "facts" as described above, the following picture emerges.
ReplyDeleteThere are two issues:
1. Britton Industries declined to honor teh continuation of its contract citing the extraordinary and unanticipated storm event as justification. The contract provided that Britton would remove ALL of the vegetative waste from Rock Avenue, for the Lump Sum of $2,408/month. We can question the wisdom of Britton's having accepted an open ended deal, but in reliance on what has been orally represented by the PMUA this was the deal. It appears that at yesterdays meeting the Commissioners authorized the furtherance of settlement negotiations by instructing the negotiators to offer $12.00/yard, but go higher if necessary. Now that Britton, by the simple expedient of reading this BLOG, knows the PMUA position. the Obviously, PMUA negotiators are compromised. BRILLIANT.
2. Whereas the above embroglio has a a defined liability, the tonnage removed multiplied by an amount not exceed $20/ton, the second issue looms frighteningly larger. The PMUA has entered into contracts for the receipt of vegetative waste with 3 other communities. These contracts set the price which those communities will pay the PMUA for this service. The contract with Britton expires in 45 days!!! In other words, the PMUA is locked into a fee which it will receive to dispose of the waste from other communities and as we sit here now the PMUA DOES NOT HAVE A CLUE as to how much it will cost the PMUA to dispose of the waste it receives. The prospect of loosing money looms large.
As I stood outside yesterday at the Special meeting while the Executives and Commissioners held an Executive session I was reminded of the mantra which was part of our training in the military.
When in danger,
When in doubt,
Run in circles.
Scream in shout!
The moral is obvious. Why was I reminded? Because the door which separated me from the Executive Session vibrated from the influence of the strident voice behind it. The screed continued for 30 minutes or more. Everyone was chastised, frustration voiced, and mandates promulgated. Rational reasoning fled leaving a brief note saying she would never return to this turbulent environment. So much for mature leadership. Bill Kruse
These guys have no clue when it comes to business dealings.
ReplyDeleteJust like all the cities signed 25 year contracts with the county burn facility for a set fee, with the mandate they provide a minimum amount of waste.
If the city provides less tonnage than agreed to (which will happen with the recycling mandate), then the cities end up PAYING MORE PER TON, because they guaranteed bringing a certain tonnage to the Rahway facility.
Where are all the attorneys that should advise their clients, tell them the dangers of these type of agreements?
The Rahway facility has a contract with Convanta, guaranteeing a certain tonnage. Burn facilities are notorious polluters, and Convanta has been cited by the DEP for a number of its operations, including Rahway, for putting dangerous chemicals in our environment from burning.
- Covanta has to make its money.
- The county has to pay for the burn facility (where plenty of people's pockets were lined).
- The PMUA has to pay for it's employees, generous payouts, fancy trucks, multiple locations, commissioner perks -- as well as the money it's borrowed
I'm sure the other towns are laughing now at STUPID Plainfield's PMUA. These more well-to-do towns are going to get subsidized by Plainfielders, because of PMUA's mismanagement. Great job guys!!
The bottom line, the taxpayers will foot the bill, no matter what, while these "business leaders" make stupid, stupid decisions.
Dunn is right. PMUA is interesting in taking -- money out of our pockets!!
Where are the Attorneys you ask? The PMUA is awash in attorneys. Ms. Brokaw a Commissioner is an attorney. Mr. Williamson the Director is an attorney. Ms. Tracy Joseph is a full time staff attorney. Ms. Leslie London is for all practical purposes a resident attorney. In addition, if you review the expenditure files, you can find the names of 4 other legal firms that they engage for a variety of purposes. The PMUA also makes liberal use of their accountants for guidance. Last year the contract with the accountants for the mandatory audit was $35,000. The PMUA paid the same firm $123,000; another $88,000 on a variety of matters. All this law and all this accounting and they are still in the soup. If a private company engaged all these outside services they would have long ago been bankrupt. The only type of organization that can operate in this wanton manner is a government agency who has the power to print money or to tax the public without restraint. ...OPT OUT
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