JCIA extends waste contract for $250,000 over 10 weeks after joint bid with Union City abandoned

1

Documents obtained by Hudson County View confirm that a planned shared services agreement between the Jersey City Incinerator Authority (JCIA) and Union City for solid waste pickup has been abandoned, and that the JCIA has awarded an emergency contract to Regional Industries – the current waste collector for Jersey City – at a rate of nearly $25,000 more per week than the 2014 contract.

Jersey City Incinerator Authority JCIA - Regional Industries

According to sources, the Jersey City Incinerator Authority Board of Commissioners approved an emergency contract for Regional Industries, LLC – the current waste collector for Jersey City – to perform “Solid Waste and Recyclable Materials Night Collection Service for the City of Jersey City” over 10 weeks and 5 days at an increased rate of $24,905.87 per week.

The emergency extension comes after the JCIA and Union City decided to “abandon pursuit of a contract providing for the joint collection of solid waste and recyclable materials,” according to a January 8, 2015 letter from JCIA CEO Oren K. Dabney, Sr. to Peter T. Roselle – President of Regional Industries.

On October 22nd, 2014, Hudson County View was the first to report that Union City Mayor Brian Stack – who also represents parts of Jersey City in the NJ State Senate (D-33) – and the Board of Commissioners unanimously approved a resolution authorizing bids for a shared service agreement with the JCIA for the collection and disposal of solid waste and recyclables.

According to a memo from the JCIA to Regional Industries dated December 30, 2014, the JCIA requested a contract extension of two weeks (January 1, 2015 through January 14, 2015) at the same price of the original contract ($7,190,000.00 per year – $138,269.23 per week). The memo also stated that on January 7, 2015 there would be a bid review meeting between the JCIA and Union City.

According to sources, following the January 8 letter the JCIA commissioners passed resolution #15-01-02 which awarded the emergency contract to Regional Industries for 10 weeks and 5 days (starting January 15, 2015 and expiring March 31, 2015) at a rate of $163,175.10 per week.

The JCIA website has still not added any resolutions from 2015 to their website at the publication of this report, and the final vote for resolution #15-01-02 is unknown at this time. Calls to Dabney’s office seeking comment have not been returned.

The difference in cost between the original and emergency contract for the 75 day period is roughly $250,000, nearly a third of the alleged savings the Fulop Administration claimed in a December 31, 2013 press release regarding the switch in providers from Waste Management to Regional Industries.

Stack did not return a call seeking comment on why Union City abandoned the shared services bid.

Jersey City Spokeswoman Jennifer Morrill declined to comment on this story regarding the cost to taxpayers of the abandoned shared services nor the alleged cost savings in the 2013 press release.

1 COMMENT

  1. […] As first reported by Hudson County View, the Jersey City Incinerator Authority Board of Commissioners approved an emergency contract for Regional Industries, LLC – the current waste collector for Jersey City – to perform “Solid Waste and Recyclable Materials Night Collection Service for the City of Jersey City” over 10 weeks and 5 days at an increased rate of $24,905.87 per week. […]

Comments are closed.