UCUA Garbage Deal (1) – Do You Know?

Another fiscal fiasco in Union County, this one involving garbage disposal, is costing taxpayers tens of millions of dollars.

In the next few blogs we will examine the history of the Union County Utilities Authority (UCUA) which leases the Union County Resource Recovery Facility (UCRRF) in Rahway to Covanta Union, Inc. (Covanta) and the latest blowup which came to light this month.

But first, do you know….

What Union County municipalities are paying Covanta for garbage disposal

In 2011 it was reported that the 14 municipalities signed up by the UCUA would save millions of dollars as their rate-per-ton would drop from $68 to $56. That rate increased through the years to $66.97 in 2015.

What everyone else is paying Covanta for garbage disposal

For 2015 the UCRRF processed 547,466 tons of garbage with 318,170 coming from UCUA deliveries.  Of the remaining 229,296 tons that Covanta got on its own the most common rate (for 167,466 tons of that) was $49.93.

How Union County taxpayers are even subsidizing those lower rates that everyone else is paying

Since the UCUA did not come up with the 430,000 tonnage guaranteed per the 2011 lease agreement (delivering only those 318,170 tons) the difference of 111,830 tons is the shortfall that the UCUA is obligated to pay Covanta at rates ridiculously favorable to Covanta.

Backup on all these numbers comes from the latest Covanta demand letter looking for their 2015 shortfall payment ($2,109,467):

ucua 2015

 

 

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One response to this post.

  1. Posted by Brian P Keane on March 9, 2016 at 10:54 am

    Roselle Park already set 2 bulk waste pickups for June and September. I wonder how much % will Covanta ask for.?

    Reply

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