The Greeneville-Greene County Regional Solid Waste Planning Board voted unanimously Monday to recommend that the city and county accept a garbage disposal bid from TIDI Waste Systems of Hamblen County.

The approved recommendation was said to represent "a five-year savings of approximately $828,770," compared to extending the existing contract

To be finally approved, it must be accepted by both the Greene County Commission and the Greeneville Board of Mayor and Aldermen.

A called joint meeting of those two bodies is scheduled for 10 a.m. this Wednesday in the auditorium at Greeneville Light & Power System, to hear and most likely vote on the bid.

After Monday's meeting, County Mayor Alan Broyles and Greeneville Mayor Laraine King said they could not see any reasons why the respective elected bodies that they chair would not ratify the recommendations.

The city and county governments are each represented on the Solid Waste Planning Board, which is chaired by Greeneville Alderman Sarah Webster.

Webster said TIDI Waste's bid was the lowest, followed by Waste Management and Allied Waste Services.

Monday's recommendation was based on a report by a three-member committee that evaluated bids submitted last Thursday by TIDI Waste, Waste Management and Allied Waste Services.

Mayor Broyles said he would have copies of the report hand-delivered to county commissioners in time for commissioners to review them before the meeting.

The TIDI Waste bid was calculated by the committee to cost $5,572,525 over a five-year period, which was $157,340 lower than the $5,729,865 bid by Waste Management.

The bid by Allied Waste, which holds the current contract, was calculated at $6,415,295 for five years.

Transportation differences were a big factor in the bids. TIDI Waste's landfill is a 64-mile round trip from Greeneville; the Waste Management landfill in Johnson City is a 57-mile round trip and the Allied Waste landfill is a 112 mile round trip.

Before voting to accept TIDI Waste's bid, the Solid Waste Planning Board also voted to recommend terminating the contract the city and county have with Allied Waste, which now operates the former BFI landfill in Hawkins County.

The three-member committee, comprised of Greeneville Town Recorder Jim Warner, Greene County Solid Waste Director Hubert Metcalf, and municipal consultant Pat Hardy of the University of Tennessee Municipal Technical Advisory Service (MTAS), noted that "a five-year savings of approximately $828,770 can be expected if the low bidder (TIDI Waste) were selected when compared to current costs."

Medcalf made the motion to terminate the current contract, without exercising a five-year renewal option.

The motion to recommend accepting the TIDI Waste bid was made by Mark Benko, a Greeneville representative, and seconded by Metcalf.

Robert K. Bird, who represents the Tusculum municipaltiy, said for the record that members had been provided copies of the committee report and most had time to study them over the weekend.

If the county commission and city board both ratify the TIDI Waste bid, a contract will have to be drafted by attorneys representing the city and county on one side and TIDI Waste on the other. The contract would go into effect Jan. 1, 2010.

Chairman Webster noted that the committee found that TIDI Waste was the low bidder on both the first five years of the contract, and also on an option for a second five-year period. The contract will have to be written in such a way as to include the second five-year option, she said.

The committee also evaluated a per-ton bid for transportation of solid waste from the Greeneville/Greene County transfer station at Afton to the Allied Waste landfill in Hawkins County, or anywhere else. Allied Waste asked to be able to submit a transportation, bid and was the only bidder to include one.

The committee report, written by MTAS's Hardy, did not recommend contracting for transportation, but did recommend examining methods to reduce transportation costs.

Hardy noted that the transportation cost per ton submitted by Allied Waste was "about 18 percent lower than the current Greeneville-Greene County cost to transport," but when added to Allied's price per ton for disposal, was "still significantly more than the totals for the other two bidders," who would use existing city/county transportation.

In recommending that transportation costs be studied, Hardy said, "It should not cost more to have a public agency transport (waste) than to have a private firm do likewise."

When the bids were being sought, several Solid Waste Planning Board members said they would not recommend contracting for transportation, because of the large investment in trucks and trailers that the city and county have made, and the likelihood that employees would have to be laid off if transportation were to be contracted.

Part of the meeting was devoted to discussion of insurance coverage and potential liability for the city and county governments.

The cover letter for the committee report, written by Town Recorder Warner, noted that John McInturff, Greeneville's insurance consultant, had been asked to verify whether limits of coverage were met. Warner said McInturf joined the committee in recommending the TIDI Waste bid.

Warner also said that TIDI Waste meets requirements for experience, scope of service and also has the necessary qualifications, licenses, permits and experience.

Webster said McInturff did not evaluate the two other companies, but representatives present Monday answered insurance-related questions.

County Commissioner John Waddle Jr. asked if a "hold-harmless" agreement is in place to protect the city and county in the event that some other party deposits something in the TIDI Waste landfill that results in major cleanup costs.

C.M. Boggs, of Waste Management, said his company has a performance bond that is designed to cover the costs of taking care of the landfill for at least 30 years after it closes, whenever than may be.

He said Waste Management carries environmental impairment insurance that will "repair anything that happens up to $10 million," and $20 million in the aggregate.

He also said the company's financial strength alllows it to "cover anything that's a problem, no matter who brings it in."

Greeneville Environmentalist Debbie Smith said the city and county are named as "additional insured" parties on the current BFI policy.

Patrick McGuffin, president of TIDI Waste, said the city and county govrnments would be indemnified on the contract if the bid is accepted.

In reply to other questions, McGuffin said the TIDI Waste landfill is located 1.8 miles from exit 12 (Lowland) on I-81. He noted that the plant is adjacent to a landfill that accepted waste from the rayon manufacturer also located at Lowland, but "Lowland never put one ounce of garbage in our landfill." and it is permitted separately.

Webster asked if the contract will include "Superfund indemnification," and McGuffin said it would. Barrett, of Allied Waste, said state regulations require landfills to carry the kinds of insurance that were being discussed.

Mark Benko said that $10 million of insurance coverage "sounds like a lot," but asked, "Theoretically, if a catastrophic problem" occurred involving a landfill occurred, "Wouldn't everybody be involved?" in resulting lawsuits.
Boggs of Waste Management said that when a catastrophe occurs, those who have been harmed "go to the big pockets first," meaning that lawsuits are filed against the entities with the greatest amount of financial strength, then the second-greatest, and so on.

Waste Management is a $15 billion (revenue) per year company, he said.

Barrett, of Allied Waste, said that Waste Management is the largest waste disposal company in the country, and his company is second, with about $9 million in annual revenues.

McGuffin said TIDI Waste is "not as big as they are, by any means," but because it is a local company, has "a lot more at stake."

He said two people check every load of garbage that come to the landfill, and if necessary, refuse the load entry.

Barrett, of Allied Waste, made the point that, right now, Greeneville and Greene County have liability exposure through only one landfill -- his -- since it is the only landfill the city and county have used other than closed landfills within the county.

If the city and county choose to use the TIDI Waste landfill, its past liability at the former BFI landfill will continue and another will be added, he said.