ORLEANS – A drastic increase in the rate for solid waste disposal in Orleans took effect Wednesday.
New Bedford Waste Services, the town’s waste disposal contractor, recently notified the town that it would need to exercise an “uncontrollable circumstances” clause in the current contract to increase tipping fees from $65 per ton to $93.75.
President of NBWS, Michael Camara, said the increase will be included as a surcharge, as the current contract with the company runs for another five years.
New Bedford Waste Services says the cost increase is due to poor recycling markets and decreasing options for end disposal locations in the state.
ABC Disposal Services Inc., which is the parent company of New Bedford Waste Services, planned to handle recycling and municipal solid waste at a Zero Waste Facility it constructed in Rochester.
The process would have included creating fuel briquettes with materials that could not be recycled.
Those briquettes would have been sold to biomass plants in New Hampshire, but the state discontinued issuing renewable energy credits causing the plants to shut down.
Town Administrator John Kelly and DPW Director Tom Daley recently recommended an approval of the tipping fee increase to the board of selectmen.
“There isn’t a better deal out there for us,” Kelly said.
Kelly said the town had no ability to terminate the contract in 45 days because it has no way to dispose of the trash collected at the transfer station.
“New Bedford Waste not only provides the disposal location, but they provide the trucking,” Kelly said.
The town’s contract with the company for construction and demolition debris is also at a favorable rate.
“His (Camara) rate to us has been subsidized by his own finances for the past several years,” Kelly said.
The current rate for solid waste disposal at SEMASS in Rochester is $90 per ton, and the rate the town was paying was $65.
“We’ve saved a quarter of a million dollars over the last five years by virtue of the fact that he has given us a very good deal,” Kelly said.
The board voted unanimously to approve the increase for one year.
The rate of $93.75 is set for 2020 and NBWS will be able to increase that rate by 2.5 percent each year through the remainder of the current contract.
Kelly said there are no other options available to the town that would be less expensive.
“If we end up with a situation where we wholesale make changes, our $66,000 a year increase to stay with New Bedford Waste Services could be $140 to go to SEMASS, a new trucking company, and new C&D disposal,” Kelly said.
“It will be more than double what we are going to be forced to pay as an impact with New Bedford Waste. I don’t see an alternative for us right now.”
Kelly said town staff will continue to monitor the situation and consider a possible plan B.
“We could not sign contracts right now to go to another vendor because we don’t have an appropriation,” Kelly said. “We don’t have enough money to pay $75,000 more between now and June 30th.”
Kelly said the finance committee only has $80,000 in reserve funds. There would also be the possibility of special town meeting to authorize funding for the remainder of the current fiscal year.
“That doesn’t make any sense to us,” Kelly said.
The increased tipping fees will require an increase in sticker fees for residents next year, according to Kelly.
The increase in disposal costs could also have the board reconsider a pay-as-you-throw model.
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