Councilman, mayor spar over trash deal

DANBURY -- A proposed agreement between the city and the owner of the White Street garbage transfer station, has some City Council members concerned the contract is weighted heavily in the company's favor.

"I'm not sure if its a bad contract, but its certainly the worst contract I've ever been asked to sign," said council member Paul Rotello.

The proposed agreement calls for the Winters Bros. refuse company to pay the city $100,000 upon signing the contract as well as $1 for every ton of garbage taken to the transfer facility before it's shipped out for incineration. The deal has to be approved by the City Council.

Mayor Mark Boughton said the agreement would be a good deal for the city, especially considering that the company doesn't have to legally enter into any agreements with Danbury.

"The company has been a really good partners with the city and this is a way to get a little something for the city for housing such a large facility," he said.

Winters Bros. purchased the transfer station, formerly operated by trash czar and convicted felon James Galante, from the federal government in 2011 as part of the assets seized during the racketeering investigation.

At the time the city had considered purchasing the station from the federal government or using eminent domain to obtain ownership of the facility, a right the city would be giving up in the agreement.

"We are abdicating a very important tool available to the city by accepting the scraps from this agreement," Rotello said.

Rotello said the proposed 10-year agreement could be continued for up to 80 years at the sole direction of the company without any input from the city.

He added that the proposal also doesn't include a cost-of-living adjustment for the $1 per ton fee the company has agreed to pay the city.

"With a COLA increase that $1 will only be worth about five cents 80 years from now," Rotello said.

Boughton said that while the city is giving up its power of eminent domain, the trash business is one the city isn't really interested in anymore.

Even through eminent domain, Boughton said, it would still cost taxpayers as much as $100 million to gain control of the transfer station, and millions more are required to upgrade the facility.

"We just don't have that kind of money," he said.

Deputy Corporation Counsel Laszlo Pinter noted that the city was in a difficult negotiating position considering the company is not required to enter into any agreement.

"They could have told us to whistle Dixie, but in exchange it appears the city got the best terms it could under those circumstances," he said.

Council Minority Leader Tom Saadi, who said he shares many of Rotello's concerns, said he looks forward to hearing from the public and from key stakeholders about the agreement when a public hearing is held either later this month or in August prior to the council's review.

Saadi said while he's happy about provisions in the agreement that create a complaint process for local residents, he would like to see some more flexibility in the renewal process to give the city some control over the terms.

"That said, maybe we could give the company longer terms so we can negotiate some provisions (during a renewal) but it has to be worth it for both parties."

Boughton noted that while the agreement has yet to be signed, the company has already been paying a host benefit fee to the city, which currently amounts to about $11,000 a month.

The company, he said, also agreed to pick up the costs associated with Clean City Danbury day, which can run up to $50,000 a year.

"We get the best of both worlds," he said. "A company that can make the investments needed in the facility while creating some revenue for the city."

Source: http://www.newstimes.com/local/article/Councilman-mayor-spar-over-trash-deal-4655691.php

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