Wednesday, April 21, 2010

Auditor: Proposed deal for Jacksonville's Trail Ridge landfill costs $37 million more than Peyton's

The settlement agreement between Jacksonville and Waste Management would cost taxpayers $37 million more than the proposal the City Council rejected last year, according to a just-released analysis by the Council Auditor's Office.

The settlement would allow Waste Management to continue operating Trail Ridge landfill for roughly 26 years, not including options to renew. The cost is estimated at $459 million, according to the auditor's report.

Last year, the council rejected Mayor John Peyton's proposed contract extension and directed city attorneys to pursue competitive bidding, a decision that led to a Waste Management lawsuit that is set for trial in December.

The court forced both sides into mediation, which resulted in the proposed settlement that was negotiated by city attorneys and the company.

The council must decide by the end of the month whether to accept it.

Council members have said they would be inclined to vote against settling the case unless the proposal would save significantly more money than what the mayor negotiated in 2008.

According to the auditor's analysis, the existing contract would cost taxpayers $488 million over 26 years, which is $29 million more than the proposed settlement. If the city loses the case, it could be forced to keep the existing contract in place until the landfill site reaches capacity, which could be another 35 years or more.

The mayor's proposed contract extension would have cost $422 million.

The report said the cheapest known option would be for the city to run its own landfill, with a price tag of $405 million over 26 years. Neither the mayor's office nor council members have expressed interest in reversing privatization of landfill operations, but Sherman says it should be part of the discussion.

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