Two more landfill companies want to bid on Trail Ridge

Feb 26, 2009 (The Florida Times-Union - McClatchy-Tribune Information Services via COMTEX) -- RSG | Quote | Chart | News | PowerRating -- Two regional companies have waded into the messy fight to operate Jacksonville's Trail Ridge landfill. Advanced Disposal Services and Waste Industries say they aren't planning to wage an opposition campaign like Republic Services, which has heavily lobbied against the mayor's plan to give the current operator, Waste Management, a $750 million contract extension. But the companies hope the city decides against that option and solicits bids.

Jacksonville-based Advanced Disposal emerged as a competitor last week when public relations consultant Michael Munz revealed that the company is his client. Mary O'Brien, Advanced Disposal's chief marketing officer, said the firm is waiting to see what the mayor and City Council decide.

"If it is put out to bid, we would certainly review the bid and fully expect to respond to it in the most competitive manner possible," O'Brien said.

Advanced Disposal would be willing to assume the environmental liability and landfill closure costs to which Waste Management has agreed under the renegotiated contract, O'Brien said. The company has included similar concessions in applications to operate other landfills, she said.

The same goes for North Carolina-based Waste Industries. Phil Carter, its landfill development manager, said nearly every proposal his company submits includes taking responsibility for landfill closure.

He wrote a letter last week to City Council President Ronnie Fussell after reading about the Trail Ridge debate.

"We do a lot of landfills in the Southeast," Carter said. "If it did come to fruition, we would certainly like our name in the hat."

Waste Industries executives are planning a trip to Jacksonville to introduce themselves to council members, Carter said.

"We're very interested if they see fit," he said. "We're there if you need us."

Adam Hollingsworth, Peyton's chief of staff, said the emergence of two new companies does not change the mayor's position that Waste Management has provided the best financial deal for the city and should continue to operate Trail Ridge.

"We're not convinced that companies in the marketplace will either bid or provide the level of taxpayer savings that the mayor has negotiated and extracted from Waste Management," Hollingsworth said.

The companies that want the contract can demonstrate their commitment to Jacksonville residents, he said, by committing to two things: proving the savings are real by showing where they are operating another landfill at similar cost and by backing the city if Waste Management files and wins a lawsuit.

"The real question is, are these opponents to this deal willing to pay those lawsuit damages in the event the city loses in court?" he said.

Hollingsworth also said he is dubious any company can operate Trail Ridge at a lower cost than the $11.38 per ton negotiated under the new Waste Management contract. He said the city's research into other landfills operated by Republic turned up municipalities paying $20 or more a ton.

Andrew King, Republic of Northeast Florida's general manager, said his company and Waste Management operate more than 200 landfills nationwide. He said both companies have landfills where their fees are in that higher range, and it is not fair to compare that to Jacksonville because so many factors are involved in negotiating rates.

King stood by his company's long-standing assertion that it could save the city money -- "tens of millions of dollars," he said -- if given the opportunity to bid.

"We can beat the number they have right now," King said, "and we can beat it substantially."

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