To the editor:

The new majority on the Town Council ran on a platform of “fiscally sound decision making,” but now they’re driving the town into a lawsuit that could cost taxpayers millions. The town signed a contract in May 2024 with a curbside pickup waste hauler, Mega Disposal, and the new majority on the Town Council looks like they’re about to breach that contract.

The facts are straightforward:

• In October 2022 the council voted to seek bids for an exclusive contract for curbside trash pickup with a single hauler that would lower costs for curbside pickup customers. 

• In May 2023, after much public input and discussion, the Town Council finalized and voted to seek bids for an exclusive single hauler to service the town.

• In May 2024, after the all bids were received, and further public input and discussion, the council voted to award an exclusive contract to Mega Disposal. 

• In November 2024, the council approved a new ordinance to fulfill its obligations under the exclusive Mega contract.

Now, the new majority on the Town Council has decided to hold a public hearing on Jan. 13 to discuss whether or not to breach the contract by repealing the ordinance.

Mega has upheld its end of the contract. The company has already ordered vehicles at a cost of $1.2 million. The contract will pay Mega $6 million over five years for waste hauling services.

If the Town Council repeals the ordinance, it’s nearly certain that Mega will sue the town for breaching its contract, seeking compensation for the company’s losses including vehicle costs, the value of the $6 million contract, and legal fees.

You can’t just breach a contract without consequences. The company bid for a contract. The town signed that contract. If the Town Council votes to break the contract by repealing the ordinance, then the company will sue, the town will lose, and the taxpayers will be on the hook to pay for it.

You don’t have to be a lawyer to know that contracts are legally binding. The new majority on the council, who ran on a platform of fiscally sound decision making, most certainly know that breaching a contract and costing taxpayers millions is not fiscally sound. If they vote to break the contract by repealing the single-hauler ordinance, they are either deliberately destructive or just plain stupid.

Sincerely,

Leonard Katzman

Portsmouth

Note: Mr. Katzman served on the previous council, resigning his seat in May 2024.