Shaw sues, says town did not follow its own bid rules

Posted July 27, 2009 at 8:45 pm and filed under City, Headlines. Updated August 5, 2009 at 11:23 am.

Company calls Council decision ‘arbitrary,’ ‘inexplicable’; mayor ‘not surprised’ by suit

By Paul Tambasco
News Editor

The trash company that Garner’s Town Council bypassed earlier this month in a controversial decision is suing the town.

Officials with Shaw Sanitation Services confirmed that they filed a civil lawsuit today related to the town’s selection of All-Star Waste Services to handle its three-year, $4.6 million trash contract starting this fall. In the suit, Shaw demands that Garner rescind the contract with All-Star, according to an Shaw’s attorney.

Download a copy of the lawsuit

Among other allegations, the company says the council did not follow the bidding process that it presented to potential contractors.

“There were reasons that the town gave for awarding the contract to All-Star that were not in the [bid] specifications,” said Shaw’s attorney Brian Edlin of Jordan Price Wall Gray Jones & Carlton, PLLC.

At its July 21 meeting, Council members said they went with All-Star because they believed the company would provide the best service. As examples, they stressed All-Star’s offer to provide a Garner supervisor and to house equipment in town.  Shaw officials say they did not know the council was looking for either of those services when it placed its bid, but that they could be easily added.

Neither service is listed in the original bid proposal that went out to contractors in February.

“Overall, we think it was a pretty arbitrary decision made by the town,” Edlin said.

A copy of the complaint was not immediately available. Edlin says the suit does not allege discrimination by the town, but that the town’s decision will be closely scrutinized during discovery.

“We’ve got a lot of questions we want answered…I’m not ruling that out, but right now it is not the central focus of the complaint,” Edlin said.

Council members have been questioned by political opponents and citizens for eschewing Shaw’s low bid, which was recommended by town staff following an extensive analysis and that would have saved taxpayers $360,000.

Despite the recommendation, Council members say they had lingering doubts about Shaw after a television newscast in May showed its employees mixing recyclables and trash on one of its routes. The Council was also skeptical of the company’s comparatively low bid on yard waste service, a priority because of complaints with the current contractor.

Local officials insist they expected a suit after the council reaffirmed its decision on July 21.

“I’m not surprised by it,” said Mayor Ronnie Williams.

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2 Responses for “Shaw sues, says town did not follow its own bid rules”

  1. George Adomavicius says:
    July 28, 2009 at 7:13 am

    Does ths mean the Garner taxpayer must bear additional litigation costs to this $360,000 difference? (“not surprised”)
    Perhaps council or town manager should provide an estimate of those incremental costs to their award decision?

  2. Arnie Osborn says:
    October 24, 2009 at 9:58 pm

    As we approach the Nov 3rd, Election Date… I hope that the citizens of Garner think hard about the costly mistakes the current Town Council Members have made and the undue cost they have brought on the families of Garner.

    Decisions like the Shaw Sanitation/All-Star Contract deal… The funding of an interest free loan for over $140,000 for 10 years to a businessman from Charlotte… and others are the reason that we need common sense at the Town Council Table.

    Consider my run for the Town Council Seat… Arnie Osborn for Town Council
    GARNERTC.ARNIEOSBORN.COM

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