UCUA Needs Money

Special meetings usually mean someone in the county has a bill due and they can’t pay it.  There was a special meeting last week and Brian Trusdell of the Westfield Leader reported on it:

The Union County freeholders will consider adopting a renegotiated deal with Covanta Union LLC for the operation of the trash incinerator in Rahway, alleviating the county of its obligation to provide 100,000 tons of garbage from outside the district in exchange for a 22-year lease extension.

The proposal was introduced at a special February 4 meeting, which followed an agenda session and more than hour-long executive session. Freeholder Chris Hudak formaally introduced the measure and announced a public hearing on the matter would be held Thursday, February 18.

….The new contract would amend the pact, which was altered last in 2011, by extending the county’s obligation with Covanta until 2053.

Covanta leases and operates the property from Union County for about $8 million per year in debt service on the facility and another $4 million in cash, said Dan Sullivan, executive director of the Union County Utilities Authority (UCUA) that negotiated the contract.

The company charges municipalities or, in the case of some towns that require residents to privately contract for trash removal, commercial haulers a per ton rate to burn the garbage. It also produces electricity and sells the excess on the open market.

A 2011 change made Union County responsible for providing about 100,000 tons of trash to the facility from outside the county in addition to the approximately 330,000 produced by the municipalities within. The UCUA had negotiated to take New York City trash, but the New Jersey Department of Environmental Protection (DEP) prohibited that,  and deals to take garbage from other counties have also fallen through, Mr. Sullivan said.

Union County was still responsible for the 100,000 tons and had to pay Covanta for any shortfall. The renegotiated deal would eliminate that provision, Mr. Sullivan said.

This was covered back in 2011 and this turn of events was to be expected:

From tonight’s freeholder meeting:


3 responses to this post.

  1. Posted by bpaterson on February 11, 2016 at 11:52 am

    Back around 2011 when this incinerator refi scheme was first cooked up by them, the FH and decotiis Fitzpatrick UCUA law firm initially had a Covanta deal to extend out to 2040. Back then when they had it reviewed by the state, I thought the state told them the contract could not have a duration that long and only allowed them around 20 years so they had to revisit the contract terms. is this circumventing the states demands and/or just plain illegal. Is anyone in the county govt and decotiis lawfirm intelligent enough to make sure this contract duration doesn’t get knocked down like the last time.


  2. Posted by ReadsLikeAMafiaBook on February 12, 2016 at 10:37 pm

    Wasn’t this all figured out back then as a losing proposition, as with the solar panel scam?

    DeCotiis strikes it rich again.


  3. Posted by bpaterson on February 15, 2016 at 6:12 pm

    john bury is the most prescient person I know, he tells them this issue and why they will fail, couple year later, they fail for the reason he already warned them about.

    they really think they are leaders just because they spend our money. The political machine made them, not their intelligence, not financial acumen or leadership qualities they are all devoid of.

    dumbasses all of them


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