BY DAN VALENTI

PLANET VALENTI NEWS AND COMMENTARY

(FORTRESS OF SOLITUDE, THE WEEKEND EDITION MAY 10-12, 2019) — News that Covanta, which operates the city’s trash facility on Hubbard Avenue, plans to sell out has raised eyebrows, especially given that the firm received $562,000 of GE settlement money for capital repairs.

Three years ago Covanta called Pittsfield’s bluff, threatening to pull out if the city didn’t come through with the money. The city fell for it, never giving sufficient rationale for why taxpayer money should be given to a private company. THE PLANET raised questions about the advisability of giving public economic development funds to a private firm, which by rights should have been expected to spend its own funds. Mayor Linda Tyer, however, thought differently. She authorized the deal, and the city council approved. Covanta had the money and in return gave the city a commitment to stay put.

Less than three years later, we now know how that’s going to work out.

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Covanta shocked the city when it notified the mayor of its intention to sell to an outfit called Community Eco Power. Tyer said she was satisfied, though none of the parties would reveal the terms of the planned sale, including the money involved. Neither would the city. Tyer justifies that by emphasizing that this is private sale between two private firms. Funny, though, that the private nature of the enterprise didn’t keep the Administration from handing over the $562K.

It gets more curious when you try to find out about Community Eco Power.

Who is Community Eco Power? A web search brings you to a home page with this message: “We’re developing our website, but we’re available if you want to reach out.” There’s no address, no list of officers, nothing whatsoever about the company or its operations.

THE PLANET contacted mayor Tyer about the planned deal.

“While I have not yet had the opportunity to meet with the potential new owners of the Pittsfield Covanta facility, I understand from Covanta’s representatives that Community Eco Power is a privately held company whose management team has significant experience in waste-to-energy facility development, management, and operations. As part of this transaction,” Tyer said, “they are also purchasing Covanta’s Springfield facility.

“If this private sale takes place, I look forward to welcoming Community Eco Power to Pittsfield’s business landscape. In the meantime, I am working to ensure that city disposal is not interrupted and that our economic development fund investment is protected.” (THE PLANET’s emphasis).

We asked if she knew enough about Eco to “vouch” for them.

“It would be hard to ‘vouch’ for them since I don’t yet have any experience working with them. However, the background of the management team gives me confidence that we will build a strong relationship. Here’s what I can vouch for — the employees currently working at Covanta who will remain in place if this private sale occurs. These hard working, experienced employees are the ones who operate the day-to-day activities at the facility. It’s my understanding that it will be a seamless transition from one ownership group to the other and that employees and operations will remain uninterrupted.”

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There’s good reason to share Tyer’s confidence about plant operations, given the continuance of current employees. That, though, isn’t the source of THE PLANET‘s concern.

Consider the facts:

(1) A $562,000 public handout to a private company.

(2) The company bails out of its commitment to stay.

(3) It surprises the city with an intention to sell.

(4) The buyer is a company with a footprint more hidden than Howard Hughes electric razor.

Now let’s look at the nature of the garbage disposal business.

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The Hubbard Avenue facility was built in the early 1980s. The plant has gone through a number of ownerships: Enercon Systems to Vicon to Energy Answers to Covanta and now to Community Eco. It’s a Tinker-to-Evers-to-Chance double play that causes reasonable concern and raises numerous questions. Each sale has gone through without the appropriate due diligence on the part of city officials.

This, after all, is the business that made Tony Soprano rich in Northern Jersey. It’s a business that has had great appeal to organized crime since the middle of the 20th century, when cities across America began pulling out of trash, especially commercial disposal. This created a huge need for private contractors. The mob was quick to jump.

Trash appeals to organized crime for many reasons:

• The business is legal. Unlike traditional mob activities such as drugs, human trafficking, counterfeiting, protection rackets, and the like, trash can show up on the books with no problem.
•  Trash is lucrative, especially when government contracts are involved.
•  As a legal business, garbage provides a convenient vehicle through which to launder money.
•  Like the funeral business and barrooms, there is and will be constant, growing demand.
• When garbage goes on strike, cities become slums in a week. That’s a lot of leverage.
• Trash companies are easy to start up or buy.
• Lack of competition. When Covanta threatened to move out, the city went searching for a replacement. It couldn’t find one.

Not long ago, New York and Jersey law enforcement officials investigated trash hauling in the NCY and NJ areas. The probe ended with dozens of arrests of people associated with the Gambino, Luchese, and Genovese crime families. A report by the New Jersey Commission on Investigations concluded: “Mobsters are still present in the trash business because state and local governments fail to put up resources, money, and manpower to close loopholes, enforce laws, and force them out.”

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THE PLANET makes no assertions that organized crime is involved with Pittsfield’s trash. There are no known facts to support any such claim. Until proven otherwise, we must assume the deal, the principals, and the business are on the up and up. That said, the Covanta-Community Eco deal seems to be happening with unusual quickness, suddenness, and without enough information. For example, was the GE money spent on its intended purpose? The public is owed details.

Mary Jane and Joe Kapanski’s $562,000 gives entitlement.  If Covanta or Community Eco writes a check to the city for $562,000, we shall withdraw this demand. Until then, we call on the mayor and city council to get involved. Get on the blower. Investigate. Conduct a public hearing. If everything is legit, no one should object.

Have a great weekend, everybody.

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“Not everything that is faced can be changed, but nothing can be changed until it is faced” — James Baldwin.

“OPEN THE WINDOW, AUNT MILLIE.”

LOVE TO ALL.

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