City Council yanks new trash contract from Meridian and gives it back to Waste Management
Richmond City Council voted Monday to withdraw a contract it previously awarded for the management of the city’s two trash centers and grant it to the current operator in what President Kristen Nye said was an effort “to correct an error made in the city’s selection of a bidder.”
This October, Council unanimously supported awarding a franchise for the management of the Hopkins Road Transfer Station and East Richmond Road Convenience Center to Meridian Waste, LLC. The vote followed a recommendation from the Department of Public Works, which noted that Meridian’s roughly $4.4 million proposal was the “highest” of two received.
Waste Management of Virginia, which currently manages both sites, put forward a $3.7 million bid.
The recommendation was a mistake, Department of Public Works Director Bobby Vincent indicated Monday.
“Staff incorrectly concluded the bid most favorable to the city was Meridian. We recommend Waste Management,” he said.
The mistake appears to stem from a misunderstanding of state law governing the award of franchises, which specifies that councils should accept “the highest bid from a responsible bidder.”
While many franchise agreements provide local governments revenue for the right to conduct business, the waste management bids represent payments the city will have to make to the company.
Meridian has pushed back against the change. After City Council voted this November to begin the process of reconsidering the award, the company filed a lawsuit against the city in Richmond Circuit Court. It has argued that the October vote and a franchise agreement it signed after the decision constitute “a legally binding contract.”
On Monday, Meridian Director of Government Affairs Tim Webb reiterated many of the arguments the waste firm made in its legal filings and voiced “concerns with some things that appear to be happening behind closed doors.”
Rob Clendenin of Waste Management in turn said his company had put forward the “best bid for the residents of the city,” one that he claimed would save Richmond $900,000 in its first year alone.
Sarah Vogelsong
