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Consultants tell Danvers to seek private operator; in‑house transfer station would deepen annual deficit
Summary
Weston & Sampson told the Select Board that operating Danvers’ transfer station in‑house would produce multimillion‑dollar annual deficits and recommended issuing an RFP or negotiating with private waste companies; the current Covanta (ReWorld) contract runs through June 2028 and includes a $100,000 host fee.
Weston & Sampson presented the Select Board with an evaluation of the Town of Danvers’ Transfer Station operations and concluded that the town should seek a private operator rather than bring operations in‑house.
The consultants outlined three options: partner with a private operator; bring the transfer station fully in‑house; or operate in‑house but expand the permit to accept construction and demolition (C&D) materials. Weston & Sampson reported that in‑house operation (Option 2) would require substantial staffing, new equipment purchases and increased hauling and disposal costs, and estimated an annual deficit of about $3.7 million. Expanding the permit to accept C&D (Option 3) would likely increase the loss to approximately $3.9 million, the consultants said, largely because regional disposal fees and market volatility make additional tonnage unprofitable when disposal costs rise with each ton.
The consultants also noted Danvers currently benefits from a relatively favorable disposal rate under its contract with Covanta (ReWorld), which runs through June 2028, and from a host fee of about $100,000 that increases with inflation. Weston & Sampson said Republic’s role ends after curbside collection and drop‑off, while Covanta (ReWorld) is responsible for hauling trash out of town. Given those contractual and market conditions, the firm recommended that Danvers issue a request for proposals (RFP) or negotiate with private solid waste companies rather than pursue in‑house operation or a C&D permit expansion.
Acting DPW Director Rob Dever attended the presentation; the Select Board thanked the presenters and agreed to take the report under advisement, inviting members of the public to send questions to the Town Manager’s office or the Select Board. The presentation highlighted that, under the study’s assumptions, simply accepting more tonnage would not generate net revenue because disposal costs would rise commensurately, canceling out potential tipping‑fee income.
The study’s findings carry immediate budget implications: the consultants’ deficit estimates are in the millions annually under current market and contractual assumptions, reinforcing that any decision to change operations or expand permitted materials would require careful fiscal and operational planning.
The Select Board did not take formal action beyond accepting the report; the consultants’ recommendation to pursue private options will inform future discussions and any procurement steps.
