RED BANK: TRASH PACT, LEAK REPORT OK’D
DeLisa Demolition won the contract to transport the district’s trash and recycling for an additional five years. (Photo by John T. Ward. Click to enlarge.)
BY JOHN T. WARD
Months later than expected, Red Bank officials agreed this week to sign a new five-year contract for private garbage transportation that will increase the frequency of recycling pickups.
They also agreed to hire an outside lawyer to review controversial emails about the offer specifications.
Internal communications from and about Councilor Ed Zipprich are the subject of an attorney’s report. (Photo by John T. Ward. Click to enlarge.)
At its last meeting in 2020 on Wednesday evening, the council approved a contract with DeLisa Demolition that would see the company pay Tinton Falls $ 4.56 million over a three-year period.
Marpal Disposal, the only other bidder, offered to complete the work over a three-year period for a total of $ 5.16 million.
Five years ago when the county privatized solid waste transportation, DeLisa won the job with a $ 1.49 million bid for the first three years. According to the treaty, the city exercised the option to extend the pact for two years until 2020.
red bank green Business Administrator Ziad Shehady asked, Does that mean the Red Bank’s garbage disposal cost has tripled in five years?
Here is his answer:
Your comparison has one premise that I believe needs to be addressed – the 2020 resolution and the amount to which you referred [$4.56 million] is the 5-year sum of the commandments. However, the contract will only be awarded for the first 3 years at a price of $ 2,538,000 with the option to extend for years 4 and 5. In this case, the total of $ 4.563 million in the resolution includes the costs for Years 4 and 5, but they were not allocated. That decision will come later. The reason this is important is because the 4th and 5th year bid amounts add so much to the total. To compare apples to apples, the first year is $ 821,000 or the three year average is $ 846,000 / year. Therefore, it is not triple or even double a year compared to the 2015 figures.
The first contract was put out to tender in 2015. I think circumstances have changed a lot in 5 years, which is responsible for the rise in prices – the normal increase in expenses over time is the biggest driver of change. It’s not uncommon for such a change to change between two garbage bid cycles – this is reflected in the tight bids that the other provider received. In addition, the market for recycled raw materials was different in 2015 than it is today – suppliers could offer less because they expect to make money from recycling. They no longer make money from recycling so their costs are not offset by the market and they now have to offset this in the contract price for the collection.
It was also the first contract the district had with Delisa, and the district did not consider everything that was necessary at the time. For example, according to the 2015 specifications, public litter bins in the city should only be picked up twice a week. After the contract was awarded, the Delisa district asked for two more weekly collections. In the 2015 bid specs, the seller was only picked up from schools twice a week. After the contract was awarded, the Delisa district asked for two more weekly collections. These changes resulted in a separate order for an additional cost of $ 12,000 per year that is not reflected in the 2015 contract numbers.
Some of the factors that would have a lesser impact are the other operational changes:
- The frequency of recycling collection for the public will double (based on demand and the county’s efforts to encourage more recycling, which will lower our garbage bins costs).
- The number of public litter bins in the city (downtown, parks, streets, etc.) has increased due to demand and feedback. In the 2015 bid specifications, the district only had 99, this time we’re at around 160 baskets. The 2015 bid specifications only stipulated that these baskets would be picked up twice a week. You will now be picked up seven days a week.
- Metal products have been picked up by Borough employees, but under this new contract the seller will pick them up.
- The schools receive the necessary collection 4 times a week.
Separately, Shehady said there were “no major changes or reductions in service” under the new contract. “The frequency of bulk collection has increased to once a month and recycling collection to once a week,” from twice a month.
He said the administration plans to meet with DeLisa to work out details and will then “post an announcement setting out the changes that will affect the public.”
In a similar action, the council approved the appointment of an outside attorney, Barry Cooke, to look into the August release red bank green from internal emails regarding the garbage bids.
As previously reported, the emails focused on Shehady’s allegations that councilor Ed Zipprich appeared to be out to “sabotage” the tender for a new garbage disposal contract.
Councilors Erik Yngstrom and Hazim Yassin have called for an investigation to determine whether Zipprich had inappropriate contact with DeLisa during the bidding process.
Zipprich, however, claims his communications with DeLisa have gone overboard and that the anonymous publication of the emails should be investigated instead.
As part of the appointing resolution, Cooke will “prepare a report that will state whether the county is conducting an independent investigation into the facts and circumstances regarding possible interference with the county’s offer for the plumbing contract in the summer of 2020 and / or subsequent publication is to commission confidential information in this regard in August 2020. “
The written report must include Cooke’s “findings, conclusions and proposed corrective actions, if any”. He must be paid a fee of no more than $ 7,500.
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