The way the township’s garbage collection service is provided will remain the same under a contract the township approved with new provider Waste Management, but the township is ending up with a savings of nearly $125,000.
The new $466,193 contract with Houston-based Waste Management represents a savings of $125,000 for the township, as the township was paying $592,445 in 2010 under its former contract with Central Jersey Waste and recycling.
The contract — approved by the Township Council on January 10 — is valid for one year, but the township has the option of renewing the service every year up to five years.
“Specifically, we wanted to only hold ourselves to a one-year agreement, with four year options,” explained Business Administrator Robert Hary. “What we’re anticipating somewhere in the future — somewhere before 5 years — is an ability to reduce that waste stream by recycling initiatives. The idea is if two to three years down the road, we’ve gotten other options where that has become more mainstream, we would have the ability to then go ahead and go to change our contract.”
Under the bid specifications, the township asked vendors to submit bids that included options for once-a-week pickup throughout the year and for once-a-week pickup in the winter and twice-a-week pickup in the summer months.
“We found in review of the bids that it was of minimal cost to continue with the current service,” said Hary. “In fact, it would be less than $5 per family per year to have the twice-a-week pick-up.”
The contract also requires Waste Management to use clean-fuel technology.
Prior to voting, Councilman Charles Morgan asked whether there was an escape clause that could allow the township to cancel the contract if it found later that it had a huge budget gap and could not meet the 2 percent property tax cap mandated by the state. He said that when he used to live in Clark, residents had to pay for private vendors to collect their garbage.
“Let’s just say we get to May, and we’ve got a gap,” said Morgan. “Do we have an escape clause where we could move to private vendors? Are we keeping a list of places where we might move or where we might seriously consider moving things” if there is still a gap, he asked.
Township Attorney Michael Herbert said it would not be legally possible at this point because the township would have had to work it into the bid specifications. Having an escape clause would have driven up the costs of the contract. Also, it might have led to a decision on their part not to bid at all, Herbert said.
Mayor Shing-Fu Hsueh said canceling township-controlled garbage collection would be bad for residents anyway, as residents would have to pay more for private vendors and would not reap the income tax benefits that are provided to them through township collection.
“If you do it by each household, you pay at least $300 a year to do that,” he said. “It can go up to $600, depending on the contract.”
He said last year, the costs for township collection under the former contract were only $172 per household. “This year with the collection, which is cheaper than last year, you almost have $12 savings per household over last year.”
In addition, residents are eligible for tax deductions by paying for garbage collection through their property taxes.
*This article was posted on January 14, 2011.
