Garbage discount OK'd
ROSTRAVER TOWNSHIP -- The new garbage hauler for Rostraver Township has agreed to give the township a discount for an early payment toward an increase in rates that will take effect next year.
The commissioners late last year extended a new contract application deadline for the township's long-time hauler, Agape Trucking Inc., with hopes of retaining the company's low rates.
Agape owner James Schoaf, however, was unable to present a performance bond by the Dec. 19 deadline, so the commissioners at a special meeting Dec. 29 awarded the contract to the only other bidder, Big's Trucking Inc., of Rostraver Township.
Agape, which had worked for the township for 20 years, was going to charge $561,000 for this year; $575,000 for 2010; and $580,000 for 2011.
To avoid a sudden rate increase for customers, Big's Trucking agreed to charge the same rate as Agape for this year.
That agreement included an extra $144,000 payment in 2010, which increased the total cost for that year to $878,375.
The commissioners had agreed to pay the extra $144,000 in monthly installments during 2010.
Township commissioner George A. Martin, chairman of health and welfare, recently met with Big's Trucking representative Joe Eori.
The two worked out a deal where the township would only pay a $124,000 increase for 2010 if it paid the amount in full by Dec. 15 this year.
At a special meeting Monday, the commissioners approved a resolution to make the payment and save $20,000.
Board Chairman Nick Lorenzo said Thursday that $60,000 of the payment will come from the township's capital reserve fund and the rest will come from the refuse fund.
Lorenzo said the money will be paid back into the funds early in 2010, as the bulk of revenue from refuse bills comes in early in 2010.
"We wouldn't be financially strapped by doing what we are doing because the bulk of it comes in the first three months," Lorenzo said.
In 2011, Big's Trucking will charge $764,973.
Martin and Lorenzo said customer rates will remain the same, despite the discount.
At its Nov. 4 meeting, the board of commissioners increased rates for 2010 from $125 to $165 for the year.
For senior citizens, the rate will increase from $120 to $125.
An additional $5 will be added to all bills not paid before March 31, 2010.