Tuesday, March 12, 2013

PMUA Clearing Storm Debris For New Business


Just as the city’s solid waste utility finally struck revenue-producing deals to accept brush and tree parts from other towns,  Hurricane Sandy tore through and created tons of municipal debris that swallowed up all the available space at the Rock Avenue transfer station. On Tuesday,  Plainfield Municipal Utilities Authority commissioners approved an emergency contract to remove 70,000 cubic yards of “vegetative waste” with hopes that FEMA will offset the anticipated costs – up to $250,000 for removal to Britton Industries in Lawrenceville and another $500,000 for disposal.

Coincidentally, the PMUA board also approved a new contract to accept vegetative waste from Scotch Plains, adding it to a roster that includes South Plainfield, North Plainfield, Green Brook and Garwood. The contracts also include drop-off of bulky waste such as household castoffs.

The emergency contract will clear about 50 percent of the debris at the Rock Avenue site so the authority can honor the outside municipal contracts, Executive Director Dan Williamson said.

But the next hurdle will be to secure a new contract with Britton or another company for final disposal. Britton’s contract was to have run to February 2013 at a flat rate of $2,408.33 per month for an unlimited amount of vegetative waste, which the company turns into mulch. But after tons  of Hurricane Sandy debris began arriving, Britton could not accept it on the same terms, Williamson said. Litigation produced a new rate of $15 per ton, but the authority will have to negotiate a new contract for disposal soon.

In public comment, resident Bill Kruse questioned how the authority will be able to make a profit on the new municipal contracts this year without knowing the disposal rate. Williamson said one problem, heavy logs mixed in with brush and such, will be alleviated by using companies such as City Logs of Newark, which takes away large tree segments at no cost.

“We have analyzed every way possible to look at this,” Williamson said. “We understand we have to make sure we don’t bleed.”

He also assured Kruse that the issue will not be passed on to the rate payer and noted rate reductions set for 2013.

Freehold Carting will take away debris for disposal and Williamson mentioned Rufus Demolition and Oveter's Construction as other possible firms for the task.

Outside revenues have been a goal of the authority since its inception about 18 years ago as the provider of solid waste and sewer services to the city. The contracts with other municipalities represent the first success toward that goal after a period of increased dissatisfaction with the authority, including a ratepayer revolt urging property owners to “opt out” of using the PMUA for trash removal. City officials also became frustrated with the authority and formed a panel to study whether the authority should be dissolved.

Williamson, formerly the city’s corporation counsel, became executive director as of July 1, 2012, succeeding Eric Watson, who along with Assistant Executive Director David Ervin received a settlement totaling $1 million, further inflaming the ratepayers. Although a "shared services" cost assessed on all property owners is still a sore point, Williamson's tenure so far is marked by an aggressive search for new business in addition to rate reductions.

1 comment:

  1. The 2 minutes allocated to each individual for public comment does not provide sufficient time to explore any matter thoroughly. The larger picture that Mr. Williamson deflected is that the Britton - PMUA contract is flawed. The language says that Britton will remove the vegetative waste ( this includes brush AND trunks AND stumps ) for $2408/month. The language omits any reference to the quantity to be removed . Had the 2 words, removed "without limitation" been added Britton would at this moment be sitting with the obligation to pay a minimum of $750,000+ for the removal of the mountain of storm debris, not the people of Plainfield. But this critical omission is not the end of the story. Subsequent to the establishment of a price for removing an undisclosed amount of material there appear UNIT PRICES for the removal of vegetative debris. WHY? If the $2400 per month were the end all, the total payment, how do unit prices play into the picture??? What was the purpose of establishing unit prices? The kindest thing that can be said by the contract is that it is ambiguous. Moreover, the fact that the PMUA settled the dispute which was headed to court suggests that they recognized that they had weak case.
    Continuing: the Britton contract expired in February 2013. The contract that the PMUA has accepted with 4 neighboring communities to dispose of their vegetative waste run another 9 or 10 months past than the expiration of the Britton contract. In other words, the PMUA contracted for handling material without knowing what the cost would be for the PMUA to handle the material. Mr. Willamson said that he had "assurances" that the Britton rate would remain the same. Mr. Williamson admitted that he did not have a legal agreement confirming that the prices would remain the same. Obviously, given the dispute and the costs we are now facing those "impressions" as to the certitude of the continuing costs were unwarranted. The PMUA is preparing to send out BId Documents to obtain the services which have terminated with Britton. Britton is currently removing waste at the revised price of !$15.00 per yard. Whether the bidders will agree to remove the material, regardless of quantity, for $2300/month is doubtful. It will be interesting to see. Mr. Williamson is hopeful that the $750,000 cost approved by the Commissioners last night will be recouped from FEMA. We were advised that the PMUA has adequate "Reserves" to cover this unanticipated outlay. The anticipated recovery is at this time speculation. Lastly, it should be noted that the $750,000 is not n the total cost of removing all the material which must eventually be removed. Bill Kruse

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