Two cities save cash in deal to toss trash

4 1/2-year pact puts focus on recycling

When it comes to saving money on trash collection, Amesbury and Newburyport have found it makes sense to work together.

The two neighboring cities have jointly entered into a $5.4 million contract with G. Mello Disposal Corp. of Georgetown, to provide curbside collection of solid waste and recyclables for Amesbury and Newburyport over the next 4 1/2 years, beginning on Jan. 1.

Mello is subcontracting with Integrated Paper Recyclers of Woburn to carry out the recyclables collection.

Amesbury and Newburyport, meanwhile, are finalizing a separate joint contract with Wheelabrator North Andover to dispose of their trash at the firm's trash-to-energy incinerator in North Andover.

Amesbury and Newburyport officials say that by collaborating on the contracts, they have been able to realize lower costs than if they had gone it alone. Municipal trash service is provided to 5,500 homes, businesses, and municipal buildings in Amesbury, and about 8,000 in Newburyport.

The two cities both have contracts with other firms to haul and dispose of their trash that expire Dec. 31.

Amesbury projects about $900,000 in net savings over the length of the contract, according to Kendra Amaral, chief of staff to Mayor Thatcher W. Kezer III. Newburyport expects to save about $100,000, said the city's public health director, Jack Morris. Amesbury's savings are higher because its costs - artificially low since it is at the end of a 15-year contract - were expected to spike next year. Newburyport's current contract is three years old.

"I am very pleased with the efforts and results of this process," Kezer said in a prepared statement. "Our residents will receive a more robust service at a lower cost, and in the process we're showing that collaborating regionally can reap tremendous benefits for our citizens."

The collaboration arose from an effort by the Merrimack Valley Mayors Coalition - of which Kezer and Newburyport Mayor John Moak are members - to pursue joint purchasing. The state Department of Environmental Protection provided technical assistance.

"I think it's an excellent deal and I think both communities fared very well by doing this together," Morris said.

Officials note that the contract with Mello, which was selected from among 11 firms submitting proposals, includes incentives to increase recycling in the two cities, which could generate savings beyond those projected from the contract.

The recycling contractor, IPR, will be offering "single stream" recycling, which means residents will be able to store all their recyclables in a single container.

Residents will receive a 64-gallon cart, much larger than standard 18-gallon bins, which they will be able to wheel to the corner.

IPR will use the cart as part of an automated system of hoisting recyclables into its trucks.

Officials in the two cities hope the greater convenience will boost their recycling rates - currently 17 percent in Amesbury and 39 percent in Newburyport. That, in turn, would reduce their trash disposal costs, which are based on volume.

The contract also includes recycling incentives. Mello has agreed to pay the cities a $10 rebate for every ton they recycle, and an additional rebate per ton that kicks in when the market price paid for mixed papers exceeds $90 per ton.

Citing other benefits to the contract, officials said Mello has agreed to offer free monthly drop-off days for white goods, and to provide paper shredding services for municipal offices.

Mello will also provide five curbside yard waste collection days a year. Amesbury does not collect yard waste curbside now, while Newburyport offers the service four days a year. (Amesbury is closing its compost pile, but its residents will be allowed to use Newburyport's compost pile.)

And Mello has agreed to try to reduce the number of days of the week needed for trash collection in the two cities, which would mean fewer days a week that trash is visible curbside, and less truck traffic.

G. Mello Disposal Corp., a three-decade-old family business, is the contracted trash hauler for Merrimac and West Newbury, in addition to serving private residential and commercial customers in the region.

IPR is the recycling vendor for a number of communities, including Amesbury, Merrimac, and Newburyport.

"We are very happy with the outcome," said Jason Mello of Newburyport, director of operations at Mello. "These are two communities that are close by and that we do a lot of business in, and it's turning out to be a great working relationship."

The firm will begin trash collection Jan. 2. Distribution of the 64-gallon carts is scheduled to begin in late March, with all of them in place by June 1. Customers can begin using the carts as soon as they receive them.