Attorney consultation pursuant to Section 551.071(1)-(2), Texas Gov't Code, to receive legal advice and counsel in connection with proposals for commercial and industrial solid waste collection services requested under RFP#CIS-47-0917, threatened litigation regarding the proposal process, and related legal issues pertaining to the City's rights, duties, privileges, and obligations. (City Manager’s Office – 15 mins.)
Why, people are asking, is the city commission - despite a majority vote in favor of it taken March 5 - placing an item on its Tuesday agenda rescinding a contract to Allied Waste?
The city's trash is literally worth millions. In the past, a five-year contract for commercial and industrial solid waste collection generated some $50 million for the best bidder.
This March 5, the city commission - after emerging from executive session - voted to proceed as discussed in the session on an item regarding economic development and that was to award the contract to Allied Waste. The service had been carried on a month-to-month basis by GMS Waste Disposal.
Insiders say that commissioner Ricardo Longoria, a GMS supporter in the past, said that despite his close personal friendship with its principals, had backed the Allied proposal because "it is the best interest of the city.
Now, the item on Tuesday's meeting agenda calls for:
"Consideration and appropriate ACTION, if any, to vacate the prior City Commission action taken at the meeting of March 05, 2019, purporting to award the waste services contract to a specific bidder. (City Manager’s Office).
Almost immediately after the award, one of the losing companies, Redfish Recycling, with close ties to the Putegnat family, filed a post award protest which in effect threatens legal action against the city if it goes forward with awarding the contract to Allied claiming the process was illegal and cost it the business.
Another item on the agenda calls for the commission to: reject all proposals, bids, and amendments submitted in response to RFP #CIS-47-0917" and order City Manager Noel Bernal to "to reject all proposals, bids, and amendments submitted in response to the RFP and "identify a qualified provider to provide commercial and industrial solid waste disposal services for the city..."
In other words, start the process all over again and rebid.
Can you believe this?
So, a company with ties to a powerful Brownsville family is angry it did not get the business and forces the city to repeat the process to see it it can get a different outcome that favors it?
If the selection of Allied was carried out in compliance with the accepted and established procurement bidding process, why does it have to be repeated? You can just hear the thud of legal motions land in the courts with this one.
Since it was notified it had been selected for the contract, Allied has invested in procuring equipment to service the contract, only to find out it will be rejected, after all. And now that the losing bidders know the winner's figures, will that give them an inside track on how to prepare their bids in the rebidding, if a majority of the city commission approves it?
Either way, the lawyers will make their money and the citizens will have to pay for them to defend itself.
"Either way we're going to get sued," said an administrator. "At least two members of the city commission want to bring it back and do it all over again and directed the city manager to put it on the agenda.