Font size:
ROYAL OAK—City commissioners are upset about the fact that the private company that takes care of their waste disposal, Waste Management Co., charges above-industry averages, and yet is just about to have its contract extended for another five years.
The Southeastern Oakland County Resource Recovery Authority, a 12-city consortium founded in the 1950s to obtain discount hauling rates, is considering a proposal to extend Waste Management's contract without competitive bidding.
If the proposal is approved, a number of cities, including Royal Oak, Berkley, Beverly Hills, Birmingham, Clawson, Ferndale, Hazel Park, Hunting Woods, Lathrup Village, Oak Park, Pleasant Ridge, and Troy will continue to pay waste hauling fees totalling $38 per ton. In a meeting of consortium member cities January 12, a proposal was approved to hire an outside consultant to compare rates with other cities in Metro Detroit to see if the consortium rates are out of line.
Royal Oak is threatening legal action if the contract goes through. Mayor Dennis Cowan says other Metro Detroit cities pay far less-and wants the Authority to scrap the proposal and even consider breaking it for the sake of bringing down costs. He also is calling for the Authority's by-laws to be changed so cities can withdraw from the consortium: Madison Heights, which left the consortium two years ago, pays only $22 per ton to Waste Management, after competitive bidding. Royal Oak thinks it could save $4.5 million by 2007 if it paid a similar rate.
At the acrimonious meeting of the Authority January 12, all of Royal Oak's resolutions were either rejected or tabled.
