COVANTA COVENANT or WHY WOULD A BROKE CITY GIVE A BILLION-DOLLAR COMPANY HALF A MILLION $$?
BY DAN VALENTI
PLANET VALENTI NEWS AND COMMENTARY
(FORTRESS OF SOLITUDE, TUESDAY OCT. 11, 2016) — In Albany, the school department wanted to refurbish a high school. In Albany, citizens had a say. In Albany, citizens voted the project down.
In Great Barrington, Cheshire, Schoharie, Freehold (N.J.), Marcellus (N.Y.), and in city after city, town after town, school officials have proposed all sorts of construction projects and citizens are shooting them down. True, many times, officials will rig the system to force another vote and will campaign hard to get their way, but in most other communities, citizens have a say.
In Pittsfield, they don’t do it that way.
Who, for instance, asked for the city charter to be revised? It wasn’t citizens or taxpayers. It wasn’t even the politicians who brought the measure forward. It was the work of hidden interests that ultimately call the shots — for example, on the unnecessary spending of what will likely be $200 million in public dollars. The old charter would have forced the building of a new Taconic High School to a citizens’ vote. If a turnout of 50% + 1 of the electorate voted in favor, so be it as The Will of The People. Once the charter overwhelmingly passed in the rigged vote, the assertive phase of the THS school project began. Officials could begin to brainwash the public on the “necessity” of the new building.
THE PLANET recently visited the THS construction site. A prison-like fence rings the building area. Red warning signs trumpet danger and STAY OUT! THAT MEANS YOU!! The only thing missing is the swastika and the words “Achtung! Verboten!”
Our visit, monitored closely a few gentle sparrows and security guards with hungry pit bulls, revealed no oddities. The misshapen, glowing orbs littering the waste piles? A mere novelty. The four-headed frogs in the wetland? Nothing to see there, folks. Armed security, following us closely? Bored housewives from the The Welcome Wagon.
“We’re playing hippity-hop-to-the-barber-shop,” we told them. Big Bro‘ is gazing.
Follow the Money, Babe
Citizens have less say in city affairs than ever. Elections fail to deliver mandates and haven’t in more than a generation. On costly projects where “representation” is afforded, the council predictably backs what’s best for the wealthy, landed gentry, and big shots. For example, mayor Linda Tyer recently proposed and the council’s committee on community and economic development approved the use of $562,000 of GE settlement money to give to a private company — Covanta, the trash handler — that won’t even commit to staying in Pittsfield. Who will benefit? Not citizens. One possible answer: Follow the Money!
Councilors Amuso (chair), Krol, Caccamo, and White voted to give Covanta the money. Councilor Mazzeo cast the lone vote against. The full council gets the issue with recommendation at its next meeting (tonight, Oct. 11).
Covanta, a so-called “clean energy” conglomerate based in Morristown, N.J., boasts on its website about providing world-leading “sustainable waste” solutions. For Pittsfield, that translates to “sustaining” the “waste” of public dollars intended for tax relief and economic development. In FY16, Covanta had an EBITA (earnings before interests, taxes, depreciation, and amortization) of $390 to $430 million while sitting on a free cash flow of $140-$180 million. Ending the calendar year 2015, Covanta had total operating revenues of $1.645 billion [source: company’s 2014 annual report]. Its stock is owned by a consortium of 20 investment companies led by SZ Investments (9.89%), Capital International Investors (6.89%), Dimensional Fund Advisers U.S. (6.25%), and The Vanguard Group (6.04%). [all figures from investors.covanta.com].
On the company’s “Political Contribution Policy & Disclosure 2014” filing, it states, “Covanta Holding Corporation and its subsidiaries (collectively “Covanta”) participate in the political process to advance our goals …” This includes “by direct corporate contributions to … candidates and committees …and by indirect means …”
Hmmmm.
Might an answer be found there to the burning question of why Pittsfield’s “representatives” would be so hot to give this wealthy company half a million public dollars after Covanta threatened to close in March? THE PLANET wouldn’t know.
One can only dream and not have it become a nightmare.
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“Never spend your money before you have it.” — Thomas Jefferson.
“OPEN THE WINDOW, AUNT MILLIE.”
LOVE TO ALL.
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The Berkshire Eagle was all for the charter which was a red flag to me to vote against it which I did. Doing the opposite of what the Berkshire Eagle recommends is always a wise decision. There was language in the charter allowing them to get away with giving no vote to the people over the Taconic High School project which is why it was so urgent for them to change the charter. They sent out their attack dogs in the form of school employee voters who easily passed the new charter. I think the “hidden interests” that you mention come from several areas. Everyone working for the School Department and the rest of the wealthy in the area are the hidden interests. These two groups are catered to by the local media just like the media in the rest of the country caters to the progressives.
Excellent post. The special interests, who seem to have control from the top down to the bottom, and a sophisticated infrastructure, own us lock stock and barrel. They hold all the cards. There really is nothing we can do since voting people out is really not an option. Why? Because they hand pick and financially back most of the new candidates which is not something the general public can compete with. Johnny Paycheck is not going to have the name recognition or the money to overcome the machine they have in place. And even if you could vote one or two Johnny Paychecks in, as occasionally happens, you will never have the numbers to overcome any given vote
You have to know when to hold them and also when to fold them. As you can see by the number of homes for sale many people have figured it out and are hoping their own children will not get locked into this no future merry go round that is Pittsfield.
Let’s think about this though. While I agree with most of what Pat says above, the simple fact is these are not “hidden” special interests. The school employee block represents the largest “block”, voting, employment and otherwise, in the area; for that matter, in many of the areas around these parts. They are your next door neighbors, the people whose kids play baseball with your kids, etc. The point is, they make up a substantial percentage of the overall population. They are not hidden. They certainly have a vested interest in keeping it that way and they are indeed well-organized. The unions see to that and they CERTAINLY have the same vested interest in maintaining status quo. People can resent them all they want but they are basically doing things democratically and the way the constitution intended. If you want to beat them you’ll have to organize, set goals and work to achieve them.
Founding Fathers primary concern was Government growing to the point it represents a speciall interest. Yes, those interests are held by neighbors, but those people represent the interest of the government, not the community. Interesting post on your part and brings up an important question of governance. Lends credence to complaints against the new Charter.
I agree, they are “hidden” out in the open. The truth is that until Dan V. finally, after lots of hard work, got the numbers of school employees who actually live in this city from McCandless, many people didn’t realize how much influence these employees actually have in elections. McCandless didn’t want to give up those numbers since he already knew how they control this city at the polls. I agree, we need to organize somehow to get more people to the polls. The apathy in this city has to stop.
Let’s start with the presidential campaign, the Berkshire Eagle will tell you to vote for Hillary. I think we all know what we need to do.
You nailed it again Pat. You have the uncanny ability to disect every problem. I once thought that the passage of the new charter was just a case of voter disinterest or perhaps citizen apathy. Thank you for pointing out that it was the teachers who are to blame. They are terrible people.
I’m sorry, but the teachers who continue to demand more and more money while giving less and less to the children ARE TERRIBLE PEOPLE.
You should turn these teachers in…every teacher I know worksome hard.
I understand that they work hard, but when people have to collect money so the children have school supplies, there is a problem.
I thought the new charter was the brain child of Melissa Mazzeo.
Correction the Covanta item is on tonight’s council agenda.
The Taconic High school project was shoved down our throats.
The people would definately have voted it down.
They know this.
This national election is the same.
They are shoving crooked Hillary Clinton down our throats.
The people are going to elect Donald Trump in a record setting landslide.
From this point forward the controlled news media is all in.
They are going to lie to us at the expense of their credibility.
They just don’t care.
For the powers that be, its Crooked Hillary.
Shoved down our throats lock, stock and barrel.
To the point where they will even assassinate Trump if they have to go that far.
Do not believe the fake polls or anything else the media tells you.
They cannot be trusted.
That the Clintons and the Democratic media would accuse Trump of mistreatment of women over something he said 11 years ago when her own husband was impeached for far worse shows the absolute hypocrisy of the Clinton machine and the media. People on this site who say it’s over because Clinton was impeached are wrong. Bill will be by Hillary’s side running this country into the ground with their progressive policies. Bill will be back in the White House and to me that is very disturbing.
People need to send a message at the polls that the hypocrisy and the control over us by the progressives and the media in this country is over.
I believe their plans for Bill Clinton go far beyond him being first man.
They are planning on installing Bill as head of the United Nations.
Hillary will turn over the US to the United Nations and they will establish a globalist one world government.
Its already starting with Obama turning over the internet to the United Nations.
“I see a new world order coming into view” “Its a big idea”
– George HW Bush
A CIA acquaintance of mine whispered in my ear that, two years ago on a dark rainy night, Obama sent special agents to the four closest planets and where they put Iranian flags deep into the bedrock. He did not elaborate but the whole thing makes me nervous.
Trump will send Hillary on a mission to Uranus
Yes, because this is what we do in this country with progressives who are guilty of terrible offenses against women. We reward them with lots of money and power after they have been impeached for said disgusting crimes. Anyone who isn’t a progressive Democrat who does the same thing or less is crucified by the media.
How did you find out
Dan, great work on this one. I was starting to worry about you because of so many days without a post. Can someone get us a full accounting of all GE interest and expenditures to date, along with jobs it actually created, and for each handout, the stipulations attached, and the mayor who iniitiated the giveaway, and who voted for and against? I would think the city would have such information at the ready.
Pat, don’t necessarily start with the school department or a few wealthy citizens as the “Hidden Interests”. It’s much bigger that. Start with the “Berkshire Brigade”.
We have racism in Monument Mountain High School with the FBI offering its services and letting south berkshire parents know that they are very aware of the crime committed against this student.Planet we have to address the top 2 stories with Trump admitting to sexual molesting of women and a death threat to a local high school student.
School C. Around the same time as the Monument Mt. incident high school student was beat close to death, by a mob of black students. He simply posted Blue Lives Matter and other pro- police stances. Funny how the AP picks up the Monument story, which to me is not much of one.
What needs to be done to change the Charter and give the power back to the people instead of the City Council ? I am all for a petition if that is what it takes for the people of Pittsfield to have their voices heard.
I would love for Pittsfield to switch to a town style government. What do we have to lose? Receivership can’t come fast enough.
Ya it works so good in Stockbridge.
PETE
As a matter of fact, it works great in Stockbridge.
Looks like Covanta is holding the city hostage.
Ahh, I think this city likes to be held hostage. Look up kickback.
I still don’t understand why Crane and Neenah are not at least contributing. Neenah would have to replace an energy supplier at a cost of a million if Covanta were to leave.
Ya get one tote and ya better get it out early and it better be facing as prescribed or you can drag it back in at the end of the day and hold it till the next week. And even though the taxpayers have given another private enterprise tax money you will pay extra if you have to get rid of a mattress or 2 by 4.
and don’t think you are going to save space in the can by flushing that left over pork roast down the toilet because I have tried it and it did not work out the way I thought it would.
Covanta wants $1/2 million just to stay temporarily? The financial data DV outlines here should tell the citycouncil in its vote tonite to reject this. Great reporting, Planet.
As we all know the people’s objections will mean council will approve.
We are one of the home you see for sale. Nice area. Holmes Road location. But we can no longer keep up with taxes.
Thank you Mrs. Mayor and council.
Maybe you can ask the mayor for some money to stay?
So because covanta is highly profitable they shouldn’t mind having one dud in their lineup? Is that the leverage point we have? Gee, that worked well with GE Plastics.
I’m ready for some showboating tonight but I hope to see a better plan from councilors who don’t like the one on the table.
MIKE
Covanta bought the facility in 2007. You mean to say they didn’t plan for improvements to the aging facility? They had almost 10 years, but no 5-year plan? This suggests that, like SABIC, Covanta had no intention of staying (and investing) long term. Now they will get this handout, milk it for four years, then either threaten again or pull out.
I would be willing to bet $100 that the reason they are only committing to 4 years is that within 4 years Crane and Co. (no longer owned by the Cranes) and Neenah are going to be gone.
that may be the real story. Paper is uneconomic to make in New England, and the buyers of the steam are probably not committing to beyond 2020.
from a math standpoint, this actually works. if it buys us 4 years, so be it. I doubt we want to own that plant though.
Excellent piece Dan, this is more like a drip, drip, drip than a flash flood. Should be interesting.
Mayor Tyer said she would be more efficient in spending SENIOR Citizen cash and she has done that…..6 million extra seconds after taking her oath to spend money faster than any one ever has.Her mom and dad must have a great pension.
Joe Tax….I understand that peoples reaction is to defend police and point out that white people get murdered by blacks….that’s your issue and that also should be stated…..a student who takes a knee should not be murdered.
It is only talk. Disgusting and vile but only talk. This student was beaten bad enough to end up in critical care. The main stream media didn’t cover it. There seems to be a media agenda and I personally don’t like it.
Have we heard the word No Brainer used yet, for CO VON TUH heist. the Co Von Tuh people have said that their long term was to stay here,but won’t make that commitment. Don’t private Companies fix thier own equipment, with their own funds,isn’t that what Capitalism is all about.
Let’s hope Maz and SIm pound this out again into nausium,we are not in the busiiness to support private companies with taxpayer funds, no matter who is using this outfit or how many jobs it saves,that is NOT the City’s duty.
Covanta didn’t do their homework, or figured we were dumb enough to sign a contract with one big loophole after another, imagine equipment upgrades from a private company to be paid for with taxpayer money? This sounds familiar.
This is just one more hitch in the road when it comes to dum dum counclors who drink the kool aid, day after day.
Mike Wardo ^^ above typifies Pittsfield think…gee I can’t think of any alternatives to this problem and the big bad Coventa is gonna hurt us so we better bend over and grab our ankles and give them $560k because it’s not real $$ – for once in this community could someone we elect(ed) have some balls to stand up for us – just once – (before you say it Mike – I don’t want to run or volunteer – this is simply just my opinion)
Call Covanta’s bluff. Let them go. Let Crane and Neenah figure out their own source or energy. I say this but realize it’s already a done deal.
yup, let Crane and figure out their own solutions. If they do, I can guarantee you – they will not be in Dalton.
There are alternatives, Chris Cross, but none of them are cheap. The annual cost of solid waste disposal in Pittsfield is over $2M.
We all know this was a deal made months ago.
One good thing, 9 months ago we were going broke,money does grow here on Pittsfield Trees.
Co Von ta,new clay uh, change the pronunciation to make it sound real fancy.
Linda Tyer, City Council – stop giving my money away At 72 I don’t want to work much longer but it’s the only way i can keep my house
To bad Pittsfield ran the Garrity’s (LB Corp) out of town when they proposed a transfer station on Industrial Drive. There are not to many good decisions Pittsfield has made through the years. But for starters stop the pigs with the garbage, go to the totes and combined recycling. They keep voting it down, now we have no choice, getter done.
Maybe Covanta saw how easy it was to get money from the city similar to how Richard Stanley did it with the Beacon and simply applied some pressure and a threat to leave… I do not agree with this and think this money should be spent elsewhere. If this is going to happen, I would like to see a commitmment for Covanta to stay for a certain number of years and that if that doesn’t happen that they pay the entire amount back. Also, don’t you think Covanta will simply come back and ask for more money once they know they have Pittsfield over a barrel? Sorry, this is a bad deal just like the Beacon was a bad deal… By the way… How are the new renovations coming at the beacon? They said that they had to do them to compete and that they couldn’t afford to if they didn’t get the tax deal. Anyone been to the beacon recently?
Channel 13 is runny a story about a trial at Berkshire County Court House, someone is accused of something…,stay tuned.
Dale is reading a Proclamation’ this isn’t the Mayor’s Meeting, come on Pete.
To other Cities, I wouldn’t recommend Co Von TUH to enter your City after the stunt their pulling.
I’m going to make one comment and not reply to anyone.
On Covanta, if this is voted down, instead of paying $562,000 now, we will lose $1,000,000 NOW due to that ncreased costs and lost revenue. And, that amount will be repeated for three additional years if another alternative isn’t found in the mean time.
So, do you want to have a cost of $562,000 or a $1,000,000 per year for the next four years?
In my opinion, this is the biggest no brainer yes vote in years.
Barry
BARRY
Covanta bought the facility in 2007. They obviously didn’t plan on investing, or they would have had a 5-year+ overhaul program. They pulled a SABIC. Paying $582,000 now is throwing that money needlessly away. The city will not lost $1,000,000 now. That is an inflated, tricked-out number. At most, the cost associated with Covanta leaving would even out. Your “no brainer” question is a loss-leader. The best decision to make is call their bluff and set up an alternate plan if case they go. This is a PRIVATE company with the resources to invest in Pittsfield if it considered the city viable. Obviously, it doesn’t, and with good reason. If the council approves this, it will be another huge mistake, driving the city that much closer to the edge. Thanks for the input, though.
I don’t know Dan, we get something like $400K in host community fees from the other towns that dump at Covanta. If that plant closes, the fees go away. Then we will have to truck the trash somewhere, we’ll need to find a residential drop off location for bulky items, yard waste, etc. This does not seem out of line – Covanta can close the plant. or we can share the cost of some improvements to keep it open while we figure things out.
even if Barry’s numbers are off, we make the money back well before a year is up. it’s easy to talk scorched earth – but who really wants to live it?
I’m a big fan of pay as you throw. I hate seeing folks leave 6-8-10 cans a week in front of their houses, no recycling and no penalty, while I put out less than a can every other week. The two toter system seems fair to me. You want more, pay more. two toters on the taxpayer and the rest on the family.
Look, we can’t help it if Covanta made a bad business decision. Covantuh, keep tou’re billionaire hands off of our cookie jar.
Hancock shaker village stole 450 k from GE Fund ….ever heavy weight in town was for this…..this council needs to go until we stop spending……
They in fact can all afford tax increases…we retirees can not….Mazzeo must run for Mayor and consolidate schools….PHS must close and reopen at Taconic.
I heard Councilor Tully say the Ity Solicitor is not returning her e-mails.Several times.
Amuso would spend a dollar she found on a sidewalk .
Mel Maz for Mayor.
No money for you Covanta.
Let Coventa shut down and reopen the dump. I’m sure another private company will come in with “green” grants from the government to reopen the trash to energy plant. Don’t forget who pushed for the charter it was a relative of Del Gallo and the judges son. They were the ones to push it through and yes it was done sleazy without much discussion. Unfortunately we are stuck with the new High School but I agree they should just close PHS and a couple of the smaller elementary schools to pay for it.
Never happen SHirl, to much fallout, jobs for one, the unions are the ones, have always been. Jobs will save the Country, Vote Trump.
Lothrop, please stay home. We are sick of your BS conversating.
Lothrop announced it had been ten months since last seen at the City Council. One question, LO. Who gives a hoot?
Leave J LO alone, he’s had a bad week with his Sawx and peewee and Papi done for the year.
Barry, I kow you said you wouldn’t respond. Ust would be very thankful if you could answer this question, very simple, why does Covanta need the money, don’t they have their own Capital for improvements, and isn’t that what a Private Company does, replace or repair their own infrastructure. if their Product of providing a service isn’t making any money, then sell or disband.