Local officials re-up with Hiltz for five years
Published on September 7th, 2005
The town’s Board of Selectmen unanimously endorsed a five-year contract extension recently with Hiltz, Stoneham’s contracted rubbish disposal company.
According to Selectman Cosmo Ciccarello, who spoke on the agreement after it was approved by the board, he has little problem with the fact that the $740,000-plus contract wasn’t put out to bid.
Specifically, the Selectman reiterated DPW Director Bob Grover’s argument that even if the contract was put out to bid, no company would have submitted a better deal.
"The prices we got last time we did this were ridiculous. And I’ve never really gotten many complaints about Hiltz, although I have gotten a few. But we would have done much worse [if we went out to bid]," the Selectman said.
According to Grover, nearly 800 condominium developments in town had signed private agreements — many of them with Hiltz — so the property owners could opt out of the Selectmen-instituted trash fee.
In doing so, Grover claimed the town’s estimates for the rubbish fee revenues had been thrown out of whack — as 800 units paying the annual $150 cost calculates into a $120,000 difference.
And while the DPW Director claimed that the revenue loss would actually level-out as the town saved money from tonnage and tipping costs, the large-scale opt-out resulted in Stoneham paying Hiltz more than it should be.
"One of the things the [old] contract didn’t cover was the opt-out of the condominiums. And the contractor is willing to throw out year five of his $772,000 contract," the DPW Director explained.
"The new contract would be for $742,000. For that, Mr. Hiltz would like to enter into a new five-year contract. The proposal that’s been put through would be at a two-year increase to the town [per year]," Grover added, explaining the deal would be for three years with an option for years four and five.
Concerned with several aspects of Grover’s request, Selectmen Chair Bob Sweeney questioned a number of details concerning the contract, including why the condos would even enter into a private agreement to begin with.
"Why would they go with a higher rate? Did Hiltz give the condos less than we gave to them? We also proposed a trash fee that would raise $1.1 million. Hiltz is [requesting] $772,000. So are we making money off of this?" Sweeney asked.
According to Grover, although the condos were essentially paying a higher fee, the bottom line cost per unit came out lower than the town’s $150 cost because the garbage is picked up at a dumpster in a central location.
In addition, the DPW Director claimed that the town’s total cost for disposal was over $300,000 above the $1.1 million in revenues intended to be collected from the rubbish fees when tipping costs were factored in.
"The condos are picked up in a different way, and that primarily means with one man, one truck, and one dumpster," explained Grover in a phone interview. "You also have to remember that historically and statistically, condos don’t generate as much trash as single and multi-family dwellings."
According to Selectman Cosmo Ciccarello, the fact that the condos opted-out of the trash fee by signing a two to three year contract with Hiltz presents yet another reason for the citizen-imposed garbage costs to be eliminated next year.
"They opted out for three years. That means if we decide to eliminate the trash fee, they can’t come back in," said Ciccarello. "We’re going to have to direct the Town Administrator pretty soon on whether to give us a budget with or without the trash fees."
Disagreeing with the Selectman, Grover believes that the town simply can’t afford to do away with the fees, even if the condos opt out.
Specifically, Grover explained that while the new contract is $30,000 less than previously, that savings will likely be eaten up by a gasoline escalation provision that forces the town to pay for gas increases.
According to Grover, yet another clause within the contract provides for a re-negotiation of the deal should the condos decide to return to the town’s garbage service once their private deal with Hiltz expires.
"I don’t know why the condos would come back online unless the town drops the trash fee. But there is a clause for re-negotiating. The trash fees generate a million dollars, so I would thin that’s wishful thinking [doing away with the garbage costs]," said Grover.
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