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Allied lobbies for trash deal: Waste company trying to keep from getting dumped
(Palo Alto Daily News (Palo Alto, CA) (KRT) Via Acquire Media NewsEdge) Aug. 28--Allied Waste is intensifying its lobbying effort to persuade city councils throughout the Peninsula to let it continue collecting trash despite the recommendation of a joint powers authority committee to select a different company.
On Wednesday, Allied sent its second letter this week to city officials, warning that South Bayside Waste Management Authority could make a selection that would cost ratepayers tens of millions more than necessary -- a contention that an authority official described as "grossly misleading."
The authority's board today is scheduled to consider dumping Allied in favor of San Francisco-based Norcal Waste Systems for a new 10-year garbage collection contract worth $700 million. A selection committee last week recommended Norcal for the contract, which starts in 2011.
Cities will have their say because the contract must be approved by each of the authority's 12 member agencies, including 10 cities from East Palo Alto to Burlingame.
Meanwhile, Allied is trying to convince city officials it offers the cheapest package for residents.
In its letter, Allied contends the authority "deliberately passed over our lowest bid" for the collection contract, which was $1.3 million lower than Norcal's at $44.9 million per year, and ignored another plan to save the authority $12 million.
Allied also said the authority's plan to revamp the Shoreway Recycling and Disposal Center in San Carlos is far more expensive than necessary.
The authority currently estimates that project will cost $53.9 million, including $36.1 million for building expansion and $17.8 for the purchase of the necessary recycling equipment, an increase from an estimate in April of $41.5 million.
Allied says it can achieve the same results by spending only $11 million -- $7.6 million to install the equipment, $2 million to expand the building and $1.4 million to do other site work -- for a savings of about $42 million.
"It is clear from this information that there is no reason whatsoever for the ratepayers of San Mateo County to spend $53 million," the letter says.
But Kevin McCarthy, the authority's executive director, said Allied's $11 million plan is infeasible and noted the company has not shared details of the plan with the authority. He said the company is "grossly misleading the public" with its claims.
"What's disheartening about this letter is it's simply a rehash of the phantom savings they're claiming and a phantom (Shoreway) proposal that's never seen the light of day," McCarthy said.
He also said the company left out the millions of dollars in increased costs of some of the perks it mentions in its letters, including a recycling incentives program and using trucks powered by clean natural gas. "An uneducated reader would be led to believe that this all would magically happen," McCarthy said.
McCarthy sent his own letter to the city councils on Monday to counter Allied's claims.
Allied was also passed over for a chance to continue managing the Shoreway facility, another 10-year contract worth $36 million annually. The authority decided last month to pick between two other bidders.
The Shoreway project is a separate decision from either of the contract choices, but Allied says it's part of the larger picture of saving residents money.
"With millions on the line for ratepayers, it's important that these decisions are made in the best interest of the residents and businesses of San Mateo County," said Jeff Andrews, senior vice president for Allied's western operations, in a statement.
Menlo Park Mayor Andy Cohen said he has concerns about the Shoreway project's estimated cost.
"I don't know if the improved facility will make such a big difference that it's worth it," Cohen said . "I've got to be convinced of that."
The authority's board meets today at 1 p.m. in the Oak Meeting Room of the San Mateo Library, 55 W. 3rd Ave., San Mateo.
E-mail Shaun Bishop at sbishop@dailynewsgroup.com.
If you go
What: South Bayside Waste Management Authority meeting
When: Today, 1 p.m.
Where: Oak Meeting Room at the San Mateo Library, 55 W. 3rd Ave., San Mateo
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Copyright (c) 2008, Palo Alto Daily News, Calif.
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