By Jennifer Eisenbart
Editor
After a second closed session meeting on the subject, the City of Burlington Common Council voted unanimously to bring legal action against Veolia/Advanced Disposal for overcharges.
City staff has estimated that the city overpaid for garbage and recycling collection by an amount of about $240,000 over the five-year period of the contract. Staff started investigating the possible overpayments last year, in the final year of the contract.
Veolia – and then Advanced Disposal, which bought Veolia – was contracted to pick up refuse for 3,307 household units in the city. The contract called for an adjustment each year, based on household units served.
No adjustments were ever made, according to the city.
“The City of Burlington was not informed” of any lowering of that number, City Attorney John Bjelajac said. “The contract basically relied on both parties to provide the numbers.”
Bjelajac said the city had no reason to believe the numbers Veolia/Advanced was using were inaccurate.
The city discovered during the bid process for a new contract that the number of households being served was actually lower than the number Veolia/Advanced was using.
“We started a dialogue,” Bjelajac said of the overpayment, but it did not lead to any refunds on behalf of the company.
Bjelajac said the overpayment has been discussed for about six months, and Veolia/Advanced Disposal never released the actual number of households serviced.
The city currently has between 2,800-2,900 households being serviced by John’s Disposal. Bjelajac is estimating there could be a 300 to 400 household difference between households that were charged for and actual collection.
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