Warren OK's landfill, recycling pacts

disposal will save taxpayers millions of dollars, city administrators predict. But the savings could be even greater. For seven years, the city paid $20 for each ton of recyclable materials processed

by Great Lakes International Recycling. Under a 1-year contract extension, the cityinstead will receive $15 per ton.

 

"This is very exciting for us," said Gus Ghanam of Warren's Public Service

Department.The stark difference is due to a change in market demand for reusable goods. "All commodities are hotter than they were eight years ago," said Great Lakes' Jim DiMarco.

 

With assistance from the company, city officials plan to aggressively promote

curbside recycling. That could include pamphlets mailed along with monthly water bills, announcements on the city's cable television channels and classroom contests.

 

Ironically, recycling of a variety of reusable materials at City Hall began only four months ago. Prior to that, only white paper was recycled.

 

Following lengthy discussion in a more than 5-hour regular meeting, the City Council early Wednesday approved a contract with Greater Detroit Resource Recovery Authority, which operates the Detroit incinerator, as the primary destination of Warren's household trash. Starting in October, the city will pay $13 per ton through the end of the year, and $13.39 from January through June 2009. With 4,030 tons of waste per month, that 6-month period in the first half of next year will cost an estimated $533,000.

 

For many years, city sanitation crews have hauled trash to the city-owned trash

transfer station, where the garbage was compacted and hauled by a private company to a landfill. Starting in October, the city plans to cut out the middle man - Rizzo Services - and have municipal employees drive directly to the incinerator.

 

In July, the council voted to spend $2.3 million and order a dozen new, larger garbage trucks cab and chassis built by Mack Truck, plus 19 truck bodies. Seven truck bodies will be installed on some of Warren's current sanitation fleet.

The cost of the rigs will be more than offset by no longer paying a private company for that hauling, officials insist.

 

Mayor James Fouts and top administrators predict the moves will save the city

$9.2 million over five years.

 

Council members this week also approved contracts with the operators of three other landfills for secondary service.

 

"We have a backup to the backup to the backup," said Vince Mikiel, city buyer.

The proposed agreement with one, the Riverview Highlands landfill, was criticized by some council members because it didn't include the amount of a "performance bond" that Riverview is expected to post.

 

"In my practice," said Councilwoman Kathy Vogt, who works as an attorney, "I would never advise a client to sign a blank contract. And that's what this is.

 

"At least fill in the name of the contractor, the address and price."

 

Ghanam and City Attorney David Richards said the bond wasn't vital because the cityis paying the cost of trash disposal and Riverview Highlands is not the primary destination of Warren's garbage.

 

During a court fight between the city and Rizzo Services over $840,000 in royaltiesfrom outside trash brought to the transfer station, officials in 2006 learned a $1 million letter of credit from a local bank had expired.

 

Rizzo Services' 7-year, $11.7 million contract expires this fall.