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Torrington council adopts Northwest Resource Recovery ordinance amid concerns about potential facility sale and monopolies
Summary
The council adopted a new chapter of the city code establishing the Northwest Resource Recovery Authority and debated a parallel regional transfer-station proposal after learning a private firm had offered to buy a regional facility for far above assessor value, raising monopoly concerns.
The Torrington City Council adopted Chapter 63 of the city code to establish the Northwest Resource Recovery Authority after a discussion about a separate, ongoing transfer-station matter and regional waste-disposal arrangements.
Council members discussed ongoing regional negotiations involving MiRA (a regional authority referenced in the meeting) and a later proposal from USA Hauling & Recycling to acquire a regional transfer facility for $3,250,000—roughly six times the assessor’s recorded value of about $500,000, according to statements in the meeting. Council staff and members said that proposal raised concerns that a private purchase could concentrate market power and produce long-term tipping-fee increases.
Ray (staff participant) and others told the council the city and 10 other towns had been negotiating a term sheet that would have transferred certain stabilization reserve funds and a facility under a regional plan. After an executed term sheet and apparent signoffs from state and regional officials, the USA Hauling proposal arrived, offering to buy the facility and to absorb contracts other than municipal-service agreements.
"If they did this there would be a complete monopoly on this service," one council member said during the discussion, noting the long-term implications for municipal tipping fees. Meeting participants said the MDA board (created or empowered by recent legislation) has broad authority, including the ability to dispose of assets without a public bid process.
Council members said they had sought follow-up with the city’s legislative delegation and asked that the attorney general review whether antitrust concerns exist; the transcript records that the request had been made but a response from the attorney general had not yet been received at the time of the meeting.
Councilman Iveen moved to adopt the ordinance as presented by corporation counsel; Councilwoman Spino seconded. The motion passed on a roll call vote with all members present voting yes.
Council members noted that if the city proceeds with an acquisition of the facility in the future, or if ordinance language needs adjustment to reflect an acquired facility, the ordinance can be amended through the ordinance committee and the public hearing process.
