North Wildwood Refuses to Acquiesce to threats to Garbage in the Streets”; Terminates Solid Waste Contract with Gold Medal Environmental ( Enters Contract with Pineland Recycling North
The City of North Wildwood has exercised its right to terminate its existing contract for solid waste removal with Gold Medal Environmental New Jersey, Inc., (GME), a subsidiary of the multibillion-dollar private equity firm Kinderhook Industries, headquartered in New York City. On March 8, 2022, the Chief Executive Officer of GME appeared at the North Wildwood Public Works Building and insisted that North Wildwood pay GME two (2) to three (3) times the agreed upon contract payments or GME would “leave the trash in the streets.” For the past two months, North Wildwood officials have attempted to reach a reasonable agreement with GME, only to be met with further threats that GME would breach its contract and “leave garbage in the streets,” if North Wildwood did not acquiesce to GME’s coercion.
“While we have been sympathetic to the plight of all businesses dealing with the impacts of the Covid pandemic and other economic issues, we will not make agreements under extortive threats,” said North Wildwood Mayor Patrick Rosenello. “GME’s CEO made it evident that he was attempting to make the contract better for GME because he did not like what his predecessor agreed to. Of course, that is not how public contracts work. GME was not willing to hear out the City’s counter-proposal to reach a number that both parties could agree on. GME also refused to put in writing that it would fulfill its obligations under the contract without any conditions,” said Mayor Rosenello.
“GME continued to tell North Wildwood that it would breach its contract and leave trash in the streets of North Wildwood. As the representatives of the residents of North Wildwood, the City Council and I have an absolute obligation to the health, safety and welfare of our City to avoid the prospect of garbage piling up in the streets. In order to fulfill that obligation, we have terminated the contract with GME and entered into a contract with Pineland Recycling. We are committed to getting through the problems caused by GME’s actions with little to no disruption in our solid waste collection. We will also be pursuing GME to recoup any losses the City might suffer as a result of having to make this change,” said Rosenello.
Pineland Recycling is based in Cape May County and has been in business for twenty-five years. Pineland Recycling currently handles trash collection for several other municipalities. The change in North Wildwood will take effect immediately.
City Council held an emergency meeting on April 29, 2022, and authorized former New Jersey Superior Court Judge Michael J. Donohue, the City Solicitor, to send a legal opinion to GME informing them that their contract was terminated (Copy attached). Council then unanimously approved the contract with Pinelands Recycling to go into effect immediately.
“Our residents should see no disruption in services,” said City Administrator Ron Simone. “But, as always, if there are any issues, please call City Hall at (609)522-2030, and we will take immediate action.”
