Convanta Deal Could Trigger Future Penalties, Cost Millions

A proposal to change how Indianapolis recycles could eventually cost the city millions.

According to General Counsel to the City Fred Biesecker, terms of the contract could trigger penalties. He says a worst case scenario is that the city would be on the hook for $56 million.

That’s based on Indy adopting a new contract with Covanta, having a better recycling program come along, and deciding to start using the new program.

"Hypothetically, if a new process were to come along next year, five years from now, if the city would want to switch to that new process, essentially it would cost them $4 million a year until the end of the contract," he said.

The proposed new contract extends to 2028.

Covanta plans to build a roughly $45 million facility to sort out recyclables before trash goes to the incinerator.

Mayor Greg Ballard says the project will increase recycling participation in the city to 100 percent.

The Public Works Board is slated to vote on the recycling proposal, Wednesday.