Allied passed over for trash contract

0 Comments | Oakland Tribune, Aug 20, 2008 | by Shaun Bishop

It looks as though Peninsula garbage collector Allied Waste is going to get canned.

A selection committee for the South Bayside Waste Management Authority recommended Wednesday that San Francisco-based Norcal Waste Systems take over curbside garbage service after Allied's contract expires in 2010.

"This is a clear and convincing outcome to five months of a thorough analysis of the proposals submitted," said board chairman Larry Patterson in a written statement. "Norcal stands above the other firms in overall value to the customer and our communities."

Allied had hoped to win the 10-year trash pick-up contract worth $70 million a year after it was snubbed for a chance to continue running the authority's Shoreway Recycling and Disposal Center in San Carlos.

The authority, which manages service for 10 cities between East Palo Alto and Burlingame, decided in July to pursue two other companies for the separate Shoreway contract, worth $36 million annually for 10 years.

The full authority board will decide next week between Hudson Baylor Corp. and Waste Solutions Group to manage the Shoreway center and is expected to finalize Norcal as the choice for pick-up service.

Those selections must then be ratified by two-thirds of the member agencies, which also include unincorporated North Fair Oaks and the West Bay Sanitary District.

Authority officials said Norcal's experience, technical ability and commitment to recycling set it apart.

Norcal has a higher proposed operational cost at $44.4 million per year compared to $43.5 million for Allied, but authority officials said Norcal had a more thorough rationale for its expenses than Allied.

"We're disappointed," said Allied Waste general manager Evan Boyd. He said he doesn't know whether Allied would have a chance to comment on the committee's recommendation before the full board.

Frustrated over complaints about Allied's poor customer service and on-street performance, the authority in late 2007 put the trash contracts out to bid for the first time.

It got four bids for the trash pick-up contract, which officials say is one of the largest contract areas in the nation. Seven companies vied for the Shoreway center management contract.

The authority is also preparing for a $54 million overhaul of its Shoreway center, set to be finished by the time the new contract begins Jan. 1, 2011.

E-mail Shaun Bishop at sbishop@dailynewsgroup.com.