News

Archives

February 20, 2011

Waste Pact Change Could Save Million

Written by

Darrell Clem

Canton could potentially save nearly $4 million over the next decade by amending its contract with its longtime trash hauler, Canton Waste Recycling.

 

Attorneys are drafting an agreement that could usher in significant savings to Canton while extending the contract — currently $3.1 million a year — beyond 2015, when the current pact is set to expire.

 

The bulk of savings centers on eliminating a 3-percent inflationary increase Canton has pledged to pay CWR for each of the next five years. The move would amount to a five-year freeze in what the township pays to its sole trash hauler.

 

For each year CWR agrees to waive the 3-percent increase, its contract would be extended an additional year beyond 2015, potentially through 2020.

 

“We’re saving a lot of money right now, and that’s what we’re trying to do,” township Supervisor Phil LaJoy said Tuesday evening.

 

In return for waiving inflationary price hikes now, the trash hauler would accept a lesser, 2-percent increase for each one-year extension beyond 2015.

 

Canton Municipal Services Director Tim Faas briefed the Canton Township Board of Trustees on possible contract changes during a Tuesday evening study session.

 

The board could possibly vote on the new agreement by late February. Moreover, the savings would take effect for the current year, trimming $90,948 off trash-disposal costs now and potentially saving Canton nearly $4 million by 2020

 

The latest cost-cutting proposal comes as Canton continues to seek ways to slash spending amid declining revenues, largely blamed on falling property values and taxes. Local officials already secured employee concessions amounting to a 5-percent cut, trimmed spending across departments and imposed a 1.75-mill tax increase for police and fire services.

 

•This spring, Canton expects to have an Illinois-based company, Vintage Tech Recyclers, collect electronic waste such as computer equipment during a one-day event — at no direct cost to Canton, which collects more than 30,000 pounds a year in e-waste. Faas said the company is seeking to make in-roads in Michigan.