Garbage company trashed

Letters commending the South Bayside Waste Management Authority’s methods of selecting providers for garbage service and the recycling contract were culled through a a "self-serving, disingenuous effort” by the JPA’s executive director, according to Supervisor Jerry Hill.

In a scathing letter to SBWMA Executive Director Kevin McCarthy, Hill blasts the Aug. 25 letter to councilmembers and board members as calling into question "the transparency” of the garbage contract selection process. McCarthy’s letter and the glowing letters by proposers, Hill continues, also "called into question your ability to present unbiased information to the decision makers.”

The SBWMA board recommends giving Norcal Waste of San Mateo the next garbage collection contract over current provider Allied Waste whose agreement ends in December 2010.

The decision must still be ratified by two-thirds of the SBWMA’s member cities and agencies at their respective upcoming meetings. While SBWMA’s recommendation may be the best for all involved, Hill said McCarthy’s methods make him "more suspicious of what I’m getting from them.”

The SBWMA cannot assume its members will simply rubber-stamp its recommendation and it is "insulting” to imply otherwise, Hill said.

SBWMA is a joint powers authority formed in 1982 to represent Atherton, Belmont, Burlingame, East Palo Alto, Foster City, Hillsborough, Menlo Park, San Carlos, San Mateo, unincorporated San Mateo County and the West Bay Sanitary District.

Allied is the longtime provider for the SBWMA but has been shaken in recent years by service problems and price concerns. Allied officials say the issues have been resolved and should not be used as a basis for not extending its contract.

Allied Waste of San Mateo County currently provides collection services for 91,000 residences and nearly 10,000 businesses under contracts through Dec. 31, 2010.

In 2006, SBWMA released audits finding Allied missed thousands of trash pickups the year before and kept customers on hold anywhere from 20 to 24 minutes when they tried reporting problems. Customers claimed the company also refused to take some types of cardboard and overcharged for heavy loads.

After the SBWMA announced the Norcal choice, Allied went on the offensive, publicly calling for a reconsideration and asking customers to push their elected officials not to agree.

Allied was previously passed over to continue operating the Shoreway Recycling and Disposal Center in San Carlos.

Allied general manager Evan Boyd argues its revamped proposal saves taxpayers money and cuts overhead by providing both curbside and recycling service.

The selected Norcal proposal is $44.4 million annually while Allied turned in a proposal for $43.5 million per year.

In a letter set to the 12 member agencies of SBWMA, Allied officials argue its proposal has more than $54 million in savings by extending the contract to 2020.

The difference to individual customers is $524 per household, Boyd said.

Allied also said it would save $42 million by retrofitting the existing Shoreway transfer facility rather than completely demolishing the facility under the current $54 million plan suggested by SBWMA.

After news broke of Allied’s public campaign, McCarthy e-mailed companies who unsuccessfully submitted proposals for service and asked them to return signed letters praising the JPA’s methods.

"[I] have a special and awkward request to make: can [you] write a letter stating that while you are certainly disappointed with the results and you not being selected you feel the rfp processes were conducted professionally, thoroughly and with the highest level of transparency and integrity,” McCarthy wrote in the Aug. 23 e-mail.

In his letter, Hudson Baylor Corporation President Scott Tenney notes "the RFP process has been conducted professionally, thorough and with the highest level of transparency and integrity.”

South Bay Recycling Senior Vice President John Richardson said the company "developed an appreciation for the integrity of the process.”

McCarthy could not be reached for comment.

In the announcement of the Norcal selection, McCarthy said the choice is a win for residents and businesses because there will be expanded services and a quieter, greener collection fleet.

Hill said regardless of SMBWMA’s position, the final answer lies with elected officials.

"If and when there are problems with garbage collection constituents don’t call SMBWMA. They call us,” he said.

Michelle Durand can be reached by e-mail: michelle@smdailyjournal.com or by phone: (650) 344-5200 ext. 102.