Township Joins With Cherry Hill, Merchantville to Save On Trash Collection

In what is being hailed as the largest deal of its kind in South Jersey, the township has agreed to join with Cherry Hill Township and the Borough of Merchantville on a five-year, $28.6 million trash collection contract with Mount Laurel-based Republic Services.

The deal will save the three towns a total of about $3 million over the contract's five-year term, according to officials.

"We were able to save a considerable amount of money by working across borders with neighboring municipal governments," Gloucester Township Mayor David Mayer said Friday.

The township will save $647,474 with the five-year deal.

Merchantville will save $103,308 with the deal. Cherry Hill will save more than $2 million on residential trash pick-up and trash collection at its schools and firehouses over the five years.

The deal was actually brokered by five government entities—the three municipal governments and Cherry Hill's school district and fire department—and Republic Services. It provides for the collection of solid waste and recyclable materials.

The partnership, announced in October, was finalized on Wednesday in Cherry Hill.

"We hoped to send a message: You'd better bring down our costs if you want our business," Cherry Hill Mayor Bernie Platt said.

Mayer pointed to the deal as an example of how shared-services agreements can save taxpayer dollars.

"In essence, what we're doing here is we're paying less for our trash collection for the next five years than we did for the last five years, despite increases to fuel and other costs," he said.

The five-year deal begins Jan. 1 and runs through Dec. 31, 2015.

A 2 percent cap on property tax increases in the state goes into effect Jan. 1, leaving towns scrambling to find ways to cut costs.