The process used to select Fort Wayne’s preferred garbage contractor was flawed, according to the City Council’s attorney.
In a letter dated Tuesday, Council Attorney Joe Bonahoom wrote that the city should have used competitive bidding to select a waste hauler, not the less restrictive request-for-proposal process.
Councilwoman Karen Goldner, D-2nd, asked Bonahoom to investigate the question, which has been raised by National Serv-All, the current garbage contractor.
“The process seems like it was not handled properly,” Goldner said.
In September, the city received proposals from five companies interested in the garbage contract. The city prepared a bill awarding the contract to Earth First, a local startup company.
The bill was pulled from the council agenda at the last minute after Serv-All and council members raised concerns about giving work to the fledgling firm.
Also raising concerns was the fact that Jerry Henry, a prominent developer and brother of Mayor Tom Henry, owns a small portion of the firm.
Jerry Henry is also a primary owner of a waste-transfer station on Pontiac Street that would handle the company’s garbage.
Goldner said she is less concerned about the process used – she doubted it would have changed the outcome – than giving a major contract to a company with no real infrastructure.
“The city’s primary goal is to get the best price from a responsible vendor,” she said.
The city has said it pulled the proposal to investigate Earth First’s finances.
Bonahoom’s letter, however, said the city has now begun discussions with Serv-All to extend its contract for two more years, a fact Goldner confirmed.
Representatives of the Henry administration did not return calls seeking comment.
But Councilman Tim Pape, D-5th, said it is hypocritical for Serv-All to complain about the selection process because it was the same method used several years ago when Serv-All won the contract.
“If Bonahoom is accurate, the city needs to rebid, and it’s the only thing the city can do now,” he said.
Pape disclosed that one of his law partners represents Earth First and is a 5 percent owner of the company.
He said it was a good thing the city has received competition for this service and noted that Earth First’s proposal was the least expensive of all the others.
“If we get competition for the garbage contract, we save millions,” Pape said.
The contract with Earth First would have also done more to encourage recycling by using a single bin for everything that can be recycled.
Serv-All currently charges the city far more to collect recycling than regular garbage.
Goldner said Serv-All is now offering to extend its contract at the current price, which is less than the proposal from Earth First. While she said it wasn’t the best way to get a low price for residents, she couldn’t ignore saving money for customers.
Fort Wayne residents pay for their garbage collection through a user fee on utility bills.
Goldner said she believes the city will make a decision quickly regarding the contract. The current contract expires Dec. 31.
