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Trash vendor selection draws ire, curiosity and maybe a lawsuit

By Paul Tambasco
News Editor

The Town Council’s selection of a new garbage vendor earlier this week is being criticized by frugal citizens and protested by a losing bidder, who is considering litigation against the town.

A worker with Republic Service Inc. dumps recyclables into a company truck. Starting this October, a new vendor will be handling trash collection for the town. BARRY E. MOORE, GCNT

Attorneys for Shaw Sanitation Services, based in Wake Forest, filed a formal protest Thursday, demanding the town immediately negate its contract with winning bidder, All-Star Waste Services of Benson.

Shaw Sanitation contends that Garner’s elected officials unfairly awarded the three-year, $4.6 million contract based on factors other than cost or merit. The company immediately requested an appeal of the decision. On Wednesday Town Attorney Bill Anderson told Shaw Sanitation that Garner does not have a formal appeal process.

“If there was such a process, an appeal would have to be to the Council itself, which has already acted on the matter,” Anderson wrote in an e-mail.

The protest comes after the Council voted 4-1 (Jackie Johns dissenting) Monday night to ignore the town staff’s recommendation to shift Garner’s solid waste contract to Shaw Sanitation. The recommendation came after a three-month public bidding process, which began in March and consisted of analysis, site visits and field observations by staff. Each firm was evaluated on six criteria: price, experience, resources, qualifications, safety and quality of service. Each company received a final score.

Shaw Sanitation’s was 25 points higher than All-Star’s. Shaw Sanitation was also $360,000 cheaper than All-Star during the life of the contract, which begins in October and expires September 2012.

By the numbers, Shaw Sanitation officials say the selection of All-Star is mystifying.

“We were shocked and stunned,” said Craig Jackson, Shaw Sanitation’s vice president and chief financial officer, who attended Monday night’s meeting with his sister, company President Nancy Shaw. Given the size of the contract, Jackson was also surprised to see the Town Council vote against the recommendation with little public discussion.

“The discussion was real low, and we kind of had to strain to hear it,” Jackson said. “It all happened in maybe three minutes after the presentation was made by town staff.”

Before taking over much of Wake County’s subscription trash services, Shaw Sanitation handled trash for the city of Raleigh from 1995 to 2007. Raleigh strongly recommended the company to Garner.

Savings needed

The $360,000 in missed savings will be felt throughout the town as unemployment numbers swell around the state and sales tax revenues plummet. The Council has already reduced its budget by $3.4 million, which included the elimination of retiree health benefits for new employees.

Last week the Council authorized spending $391,500 for recycling carts (See “Council aims to amp up recycling,” Page 3A ).

“If we would have been successful, the savings from the contract alone would have paid for the carts,” Jackson said.

Since 2003 the town has contracted with Republic Services Inc., a larger, national company out of Phoenix, Ariz., for trash, recycling and yard-waste pickup within the town limits. Republic’s bid was within $500 of All-Star’s. Below Shaw Sanitation’s, Republic’s score was also higher than All Star’s.

Representatives from Republic declined to comment on the Town Council’s decision.

Jackson said no one from the town has talked with either him or his sister since the meeting.

“There’s nothing they could say,” he said.

The town’s take

The solid waste contract is one of the largest service contracts that the town handles. Nearly 8,500 residents receive trash and recycling services. Despite the brief public discussion, the Council says it did not take the decision lightly.

Since the bid closed in March, Council member Gra Singleton said members have reviewed bid materials dozens of times and have talked with staff and with each other.

Singleton said cost was considered, but All Star’s intangible qualities made the difference. Council members Kathy Behringer and Ken Marshburn agreed.

“[All-Star President] Tommy Sims grew up in Garner, went to school in Garner. He lives in Garner; his parents live in Garner. It’s a pride thing,” Singleton said. “You can’t measure it on some type of scale.”

Bids for municipal service contracts are not subject to state laws that require elected officials to select the lowest responsible bidder. The laws allow for the more subjective nature of service contracts compared to construction projects, experts say.

“It is completely up to the local government how they select those services,” said Eileen Youens, assistant professor of public law and government at UNC School of Government.

Citizens, former elected officials dumbfounded

Regardless of legality, the decision has baffled former board members.

“This is unreal,” said former Alderwoman Janice Stephenson. “In a year when revenues are down and we don’t know where we are going and what we are doing, I would think we would want to save $120,000 a year, unless the low bidder was a complete disaster.”

At the meeting, town staff told the board that all three private vendors could provide the town with stellar service.

The town has hired outside contractors for trash services since 1989; Stephenson says past Council decisions on trash-waste services have often been contentious.

Monday night’s process also puzzled some local residents.

“As long as we get good service, it’s fine,” resident Gerald Goodwin said. “But that’s strange that with that kind of money, I don’t know why they didn’t discuss it longer than five minutes.”

‘See them at the grocery store’

Singleton insists that getting the best service for the town is the council’s top priority; he believes the town will get it with All-Star.

“With someone who lives here, grew up here and knows a lot of the people here, there’s a difference. You know them,” Singleton said. “You run into customers at the grocery story, and they’ll raise Cain if you missed their trash.”

The question remains whether the increased accessibility is worth the cost difference.

“Is it worth $120,000 to talk with [waste vendors] at the grocery store? I don’t know,” Stephenson said. “But that’s an expensive conversation.”

Related articles:

• Campaign contributions from the Sims family to Council members
• A town divided
• Amid protests, Council moves forward with All-Star trash contract

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