Town Refuses to Pay CRRA for Faulty Loan

The Rocky Hill, Ct., Town Council has proposed a resolution to refuse to pay the Connecticut Resource Recovery Authority any increase in tipping fees resulting from CRRA's $220 million loan to Enron - money that was lost after Enron declared bankruptcy.  (See earlier story)

The resolution was referred to Town Attorney Mike Heneghan for review, and might be ready for approval as soon his review is completed.

According to Mayor Barbara Orsini Surwilo, there appears to be a consensus among council members to approve the resolution.

According to Deputy Mayor Philip Sylvestro, the resolution was drawn up so the town will not be surprised if CRRA decides to increase tipping fees as a result of the lost $220 million loan money. Tipping fees are the charges that a town under contract with the CRRA has to pay for dumping their garbage at the CRRA's recycling facility. Rocky Hill is one of 70 municipalities in the state that are under contract with the CRRA.

Sylvestro said CRRA's surplus has gone to pay off the $220 million loan, and the corporation is still not anywhere near paying it off.

"They have nowhere else to go, but to their tipping fees," he said.

The resolution states that CRRA had no authority to execute the loan with Enron in December, 2000. Under the company's contract with the Town of Rocky Hill, CRRA is required to seek approval from the town for actions that would affect the tipping fee.

According to the resolution, town approval for the loan was not sought from the CRRA, and since Rocky Hill didn't approve the $220 million loan, the town therefore shouldn't have to pay increased tipping fees as a result of it.

"Be it therefore resolved that Rocky Hill will not pay any part of the tipping fee that arises from or is the result of the loss of the $220 million," the resolution reads.

"I've been opposed to paying for the loan from the very beginning," Sylvestro said. "All the towns should not be burdened with tipping fees to cover the loan."