Covanta will continue taking Haverhill’s trash for up to another decade on terms favorable to the host city even as the energy-from-waste company makes plans to close its ash landfill. The Haverhill City Council unanimously agreed to extend its solid waste host agreement with Covanta Haverhill that dates back to the 1980s. The most recent contract expired about a year ago and the two sides continued negotiating under a one-year extension. Attorney Michael A. Leon of Nutter McClennen & Fish, representing the city, told councilors an agreement was reached a few weeks ago.

“The new agreement is now good for 10 years. This is a rather unusual contract because it locks in a schedule of solid waste disposal costs with the host payments that are due to the city from Covanta. The solid waste disposal cost is scheduled and capped. Under the first year of the contract, we would pay $65 a ton and it would ratchet up. However, for every increase that we experience in the rate, we increase the host payment and the overall economic benefit to the city continues to increase over the 10-year period,” he said.

Leon said the city will earn net revenue of $1.25 million plus an additional $250,000 in taxes in the first year alone. The new contract is good for five years with an option for the city to renew for another five years if it desires. Covanta cannot refuse renewal. Besides Haverhill, another 20 or so communities and several commercial haulers bring refuse to Covanta.

To read the full story, visit https://whav.net/2021/06/17/covanta-haverhill-reach-agreement-on-extending-disposal-pact-note-imminent-closing-of-ash-landfill/.
Author: John Lee Grant, 97.9 WHAV Wavelengths
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97.9 WHAV Wavelengths

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