Waste hauler battle continues
By GENA JOHNSON
Special to The Oakland Press
Published: Tuesday, April 14, 2009

Both Richfield Equities LLC and Allied Waste Services seek waste hauling contracts in West Bloomfield Township
In one corner was Richfield Equities LLC, which was voted by the board to be the preferred waste hauler for the township. In the other corner, Allied Waste Services, which had the coveted title for more than 20 years.
“It has been a rough transition,” said Michele Economou Ureste, West Bloomfield Township supervisor.
Adding to the bumps, Richfield — whose contract began April 6 — did not have the $1 million surety performance bond required of the preferred hauler by the township.
Richfield Equities was approved by the board to be the preferred waste hauler on March 5.
“We did not have enough time to get one,” C. Thomas Toppin, lawyer for Richfield said of the bond. “There were only a few days’ turn around from the time we were notified until the time we had to put in our bid.”
A surety performance bond guarantees funds available in the event the contracted company is unable to perform its duties. The township uses the funds to get another company to do the job.
Richfield put up $100,000 in cash rather than the $1 million surety bond, viewed as a good faith measure by some board members.
J.Kevin Kendall, general manager of Allied Waste Services, said it wasn’t fair that Richfield was chosen when it did not meet the requirements. Allied factored in the $1 million surety, he said.
“It is as if we are in race competing for the same thing, the requirements are established in the beginning but change for you, but don’t change for me. It’s not fair,” Kendall said.
Board members said they did not know how long it took to get a $1 million surety. The attorney for Richfield said it takes several weeks. A representative for Allied said it takes a couple of days.
“It takes a couple of days to get a surety unless there is a matter of credit or some other problem,” said a West Bloomfield resident who spoke during the public comment portion of the meeting and identified himself as a practicing attorney for 37 years.
He admonished the board for not having done its homework and for hashing the matter out before the public.
The board then voted and approved that Richfield be allowed to use the $100,000 cash as a bond while the waste hauler applies for the $1million surety, which must be provided by April 20.
EconomouUreste said West Bloomfield has 25,000 households. Condominiums and apartments properties provide their own waste hauler. Allied had about15,000 households before the transition.
Allied retained about 10,000 households by contacting its customers and matching Richfield’s prices, Kendall said.
Richfield acquired about 5,000 households through a mass mailing of 23,000 that was sent out on township stationery, township officials said.
The mailings were sent to single-family homes, as well as residents of condominiums and apartments.
“The board did not vote for Richfield to use township stationery,” Economou Ureste said. “This was a staff mistake.”
Richfield anticipated a greater West Bloomfield market share.
“We purchased $2 million of trucks and equipment,” said Fred Hambleton, vice president of Richfield.
Richfield was chosen because it offered lower costs to residents, a savings of $2 per month. It also offered prepayment options and a future affinity program, township officials said.
“The future affinity program,Rewards for Recycling, may be established as soon as May,” said township Treasurer Teri Weingarden.
Residents would earn points for recycling, which could be redeemed at local businesses for items or a percentage off goods or services. It is free to the residents,Weingarden said.
“The program would generate foot traffic in our businesses and residents would get cost savings.” Weingarden said. “It is a win-win situation.”
The Rewards for Recycling program would be in addition to the Capital Cooperative Investment Revolving Fund, which is to study recycling options. West Bloomfield, along with six other Oakland County communities, is being studied to see if by combining recyclable waste it can be converted into a revenue stream, such as a fuel source or plastics. This would limit the need for landfills, which are quickly diminishing.
“Allied owns landfills,” Economou Ureste said. “They said, ‘Regardless if you won’t contract with us to haul your garbage, you will be able to contract with us to dispose your garbage.’ ”


Comments