Photos
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Mr. Meehan took office last year after the old executive director resigned amidst a scandal relating to the Co-Gen facility. Credits: Thomas Fortunato
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A shot of councilman Kevin Glover passionately questioning the RVSA representatives. Credits: Thomas Fortunato
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Credits: Thomas Fortunato
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An inside look at the inside of one of RVSA's sludge dryers, taken by Tom Fortunato on his visit to the RVSA on May 20th 2010. According to RVSA director James Meehan, the sludge dryer was built capable of handling twice the load that RVSA currently uses it for. Mr. Meehan is looking into having other companies pay the RVSA to use this dryer to dry their own sludge. Credits: Thomas Fortunato
Scotch Plains Council Addresses Sewer Cost Problems
Friday, February 10, 2012 • 7:04am
SCOTCH PLAINS—On Tuesday, the mayor and council met for a conference meeting, where the major topic of discussion was sewerage-related cost and issues.
First, representatives from the township’s own sewerage utility—created in 2009 as a means to separate residents’ sewer bills from their general property taxes—informed the board and attendees that the utility had overbilled residents this past year and now is sitting on a $180,000 surplus.
“No new taxes!” yelled councilman Kevin Glover, who later advocated that the utility return the money to residents as soon as possible rather than use it over the next two or three years to keep sewerage bills slightly lower than they would otherwise have been during that time.
“This is your third year of operation so you’re starting to get a feel of how the rates are coming in,” explained one of the sewerage utility representatives, “When you first start the utility, you really kind of speculate the costs.”
“You’re going to have an increase [in costs] next year from RVSA,” Deputy Mayor Mary DePaola reminded, “so your surplus is dwindling down.”
Mr. Glover then posed a hypothetical situation that may affect real Scotch Plains residents: “I paid too much into [the sewer utility] already. I’m leaving town, for argument’s sake. I don’t see that money coming back.”
“It’s a hell of a way to run a restaurant,” Mr. Glover added, “you charge more for the steak today so you don’t have to charge as much tomorrow.”
Later, the Rahway Valley Sewerage Authority (RVSA) executive director James J. Meehan spoke, informing the board that the township’s sewer rates are going to go up 3.3% this year. Mr. Meehan was accompanied by RVSA secretary-treasurer Robert J. Materna.
The RVSA suffered a $35 million loss two years ago after building their Co-Generation Facility, which was designed to turn the methane gas produced by the authority’s sludge digesters into electricity, which would cut their energy costs. Due to a series of mechanical failures, the facility has turned into a very costly white elephant for all involved.
“It makes no sense to salvage [the Co-Gen], it’s only worth about 1 million,” explained Mr. Meehan, “but we did do extensive investigation on the sludge drying facility, and we do know there is the ability—we feel—to recoup about $115 million from a public private partnership in the dryer.”
The RVSA kept stating that they were going to push forward with litigation to recover as much of their loss as possible. The council, including councilman Glover and Mayor Nancy Malool, stressed that the RVSA stop waiting for the litigation to settle and “cut their losses” and carrying on with business.
“Let’s say I have a house that I rent out,” explained the Mayor, “and my tenant leaves a month into his lease and he’s got 11 months left, and I bring him to court to get my 11 months back. I can’t sit there for 6 months and let that house stay vacant; I have to mitigate my damages by trying to find a new tenant to make up for the difference.”