Wednesday, February 18, 2009

City Awards Garbage Contract Without Bids

Last night the City Council voted to award a five year contract to Allied Waste for garbage, recycling and yard waste collection.  Bids from other companies were not sought before this contract for in excess of $5,000,000 was awarded.  I have written previously regarding why bidding makes good fiscal sense and is the financially responsible thing to do (http://cresthill-illinois.blogspot.com/2008/12/trashing-principles-of-good-government.html).  I have also written about the Committee to Re-Elect the Mayor accepting a large donation from Allied Waste and the ethical issues that poses (http://cresthill-illinois.blogspot.com/2008/12/mayoral-ethics-part-ii.html).  

Not only did Alderpersons Vershay, Oberlin, Brandolino, Dyke, and Inman vote as if they believed that bidding had no sound purpose and that there was nothing wrong with those seeking city contracts giving political contributions; they actually voiced such opinions.  It was shocking to hear such statements expressed by those who have been entrusted by the public to act in the best interest of the city and its citizens.  

Alderwoman Oberlin stated that to go out to bid would be like gambling that we have no way of knowing that we would get a better price by doing so.  She also stated that it would be irresponsible to gamble like that.  In fact, we would not be gambling as we know the outcomes so long as we can assume that Allied Waste is run by rational people seeking to make a profit.  We would get a price at least as good if not better by going out to bid because the addition of competition would drive prices down.  My previous post goes into this in greater detail.  The truth though is that there is nothing irresponsible about going out to bid, there is in fact something very irresponsible about not seeking the lowest cost for the citizens of Crest Hill.

Alderman Inman commented that there was no connection between the Mayor, the contributions by Allied Waste to his campaign, and this contract.  Well, the connection between the Mayor and the contributions is clear and direct.  It is also apparent that the Mayor spoke in work sessions supporting awarding the contract without bidding.  He also worked to negotiate this contract.  Alderman Inman may think that because the fuel surcharge was negotiated out, the Mayor did a good job and the city got a great deal.  Well, the truth is that in any negotiation the terms are on the table and to have negotiated out of new language that few other cities have ever agreed to is not a huge victory.  And even if t had been an amazing negotiation, considering only one company to the exclusion of all others is irresponsible.

Two of the men running for Mayor spoke up in opposition to awarding this large contract without going out for bid and should be commended for their efforts.  Alderman Soliman spoke to the point that I believe is central which is that any price given in these negotiations should be able to have submitted as a bid, if not an even lower price.  Mr. Semplinski brought up the very insightful point that if Allied Waste can afford to hold the price for the next year the same as it was this year, they must have been able to make a pretty good profit this year and probably had more room to offer a lower price.  I wish the incumbent Mayor had the wisdom to put forth such good thoughts and to encourage those who follow his lead to have done the right thing.