Thursday, November 30, 2017

Update: Friday Court Date Looms For Township Garbage Contract


You may have seen this article in Tuesday's Asbury Park Press: Middletown: Republic Services sues township over $21.7M trash deal. It's about the lawsuit that Republic Services has going against Middletown concerning the new garbage contract that was give to Central Jersey Waste and Recycling.

The basis of the case revolves around the  alleged violations of the Local Public Contracts Law (LPCL) and the Open Public Meetings Act (OPMA). I read through the complaint  - which is conveniently posted at the bottom of the APP's article - and here is a short summary of some interesting facts:

The matter involves the lucrative town-wide garbage collection contract that takes effect on January 1st. The township was sued by Republic, who lost the contract award to Central Jersey Waste and Recycling. The bids were close. Republic is claiming that Central Jersey's bid was materially deficient, lacked a proper insurance certificate and bin warranty documentation and that discussion of the contract and bids occurred improperly in closed session both before and after bids were received.

Republic claims that early township committee discussions, prior to issuing the bid specifications, did not constitute contract negotiations and did not qualify for closed session discussion. These early discussions, Republic claims, instead concerned a policy decision to dissolve the garbage district and move toward town-wide pickup. Republic also claims that the mere selection of a low bid in line with the LPCL does not constitute a negotiation.

Central Jersey's lack of warranty documentation for carts, or more specifically, proof that the township would be covered by a 10-year warranty, is pertinent because the carts have value and would become the property of the township after the 5-year collection contract expires.

Another interesting issue is that the township's RFB (Request for Bids) sought bids for several service options, like solid waste collection only, solid waste and recycling, etc. The complaint notes that Republic's bid for one option was at least a million dollars lower than Central Jersey's. For the service option chosen by the township, Republic's bid was just $20K per year (about a dollar per year per household) more than Central Jersey's.

 An interesting question is whether Republic's bid for the service option NOT chosen would have benefited residents,  that is, does that bid reflect a savings over the current cost for those services? In general, the whole matter raises questions about how the township arrived at its decision.

The two sides are due in court tomorrow, Friday, December 1st.

Hopefully, this case will be rectified soon before it costs the Middletown taxpayers more than if it would have just awarded the contract to Republic in the first place.  Talking to a couple of lawyer friends, this case has probably already cost taxpayers over $50K  and could easily skyrocket.

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11/30/17 - 7:30pm

The case hearing is now tentatively scheduled for Wed, Dec. 13 at 1:30 PM. It seems that  Dec.1st is the date for returning documents to the court.  


8 comments:

Anonymous said...

I've personally spent a career defending townships, corporations and individuals from phony lawsuits such as this one. All I have to say is that the Township Committee should not take (the very poor) legal advice from Mike Morris.

Carolyn said...

Thanks for the information, Mike. Typicl Opra violation, it seems!

Anonymous said...

The township has a shared services agreement with the school district for garbage collection. If this change from the current garbage collection system is a cost saving measure, why is the school district’s portion of the garbage collection increasing $400,000 per year? The idea of shared services is that by creating a larger bargaining unit both parties can share in the cost savings. The bargaining unit is even larger than it was before because it now includes the entire town. The town is charging the school more for something that is costing them less. The school system’s contribution should be decreasing, not increasing.

The Township Committee negotiated the contract unilaterally, and then they alone determined how much of the cost would be borne by the school district, take it or leave it. They are charging the schools an amount which is less than what the school district would pay if they negotiated on their own, but it does not reflect the savings the township is receiving by having the schools included in the contract. The township is saving money on every household and school in town by increasing the volume of trash that they are contracting to have removed. But they are telling the school district that they must pay much more for their trash collection. How is this even possible?

The Committee is shifting the township’s tax burden to the school district’s budget so that they can point to the school system at tax time as the culprits who are responsible for the taxes in town, just like they do every year. This is another shameless cash grab directed at our children, just like what they are doing to our Library. $400,000 could replace an awful lot of outdated textbooks but our Committee is more interested in appearances and remaining in power than educating our kids.

The Committee continues to play us for fools and every Election Day, year after year, we happily prove them right.

MiddletownMike said...

Anon 9:32,

You can't take advise, whether good or bad, when none was given.

Anonymous said...

You know what’s garbage? This blog and the guy who runs it!

bigbluegiant said...

Love how the ballest hide behind a computer screen. Any bets its fatass Fiore or Shitberger, besides thios garbage deal is a joke . Wonder if the effing TC and the tax evader ever drive these Middletown street after a snowfall. Worst plowing in the area-Township wide. Garbage will be all over. Glad I'm out of this bs town soon.

carolyn said...

anonymous 3:54 you are trash talking without daring to provide your name. How about backing up your "garbage" comments with some specifics?You are a lousy debater , for sure.er

Anonymous said...

I have no doubt that when all the legal bills are totaled for the suit against Middletown and their retention of their crony lawyers, there will be a net loss to taxpayers. Unless the prior company did a lousy job, a little effort to work with them would have been the best route. As always, a fishy smell lingers long after the deal.