City officials awarded two solid waste disposal contracts this month totaling almost $12 million, according to city records.

The first contract, worth $10.74 million, was awarded to Morristown-based Covanta Sustainable Solutions which operates a transfer station on River Street. The firm will charge the city $67.25 per ton for the first year of the two-year contract and charge $67.75 per ton the second year.

For the first year the city will pay $5.35 million and for the second year the municipality will pay $5.39 million, according to city records. The two-year contracts runs from August 1st, 2015 through July 31st, 2017, according to city records. The city has the option to renew for a third year for $71.19 per ton.

Four firms bid on the contract including Covanta Sustainable Solutions which was determined to be the “lowest responsible” bidder.

The second contract, worth $1 million, for disposal solid waste from city public works yards, was awarded to local firm Coastal Distribution of Paterson. Costal submitted the lowest bid, according to city records. Four companies competed for the contract.

The second two-year contract runs from August 1st, 2015 to July 31st, 2017. Costal is charging the city $72.98 per ton for the first year and $74.43 per ton for the second year, according to city records.

Mayor Jose “Joey” Torres said his administration secured significant savings on the city’s garbage contract during his state of the city speech, but he did not respond to a call to elaborate on those savings on Monday morning.

Council members approved both contracts during their regular session on July 14th, 2015.