Hearing sought on recycling contract
By Gordon Y.K. Pang
Advertiser Capitol Bureau
A key member of the Honolulu City Council wants to hold hearings to investigate the city's contract with Island Recycling Inc., which handles the curbside disposal of recyclables for 11,000 homes in Mililani.
Councilman Rod Tam, who heads the Public Works Committee, which oversees waste-disposal issues, yesterday said he also wants to prevent the company from getting an expanded contract if the program goes islandwide.
Questions have emerged about discharge permits and the recycler's compliance with building codes.
But Managing Director Ben Lee, said allegations are being made "without any basis."
Lee said the administration expects Island Recycling to resolve most outstanding issues and give assurances that it can take care of the rest of them before the city will allow the company to handle an islandwide program.
City officials also said they don't think the problems will cause a delay in their plan to have curbside recycling on an O'ahu-wide basis by the end of the year.
A spokesman for Island Recycling denied any impropriety. The company processes newspapers, bottles and containers it collects every other week in the city's pilot program in Mililani that began in November. The company also was the low bidder for a contract to handle a much larger load if the program is expanded islandwide. Lee said yesterday that contract has not been awarded yet.
The company has been under scrutiny since an April 30 fire at its Sand Island site. Carroll Cox, president of EnviroWatch Inc., said the firm does not comply with building codes or have proper land-use permits, and has been cited by health officials for allegedly polluting a canal and lacking a water discharge permit.
The company also owes about $100,000 in back rent and electricity to the state for the Sand Island facility.
Meanwhile, the Department of Labor and Industrial Relations issued three citations to Island Recycling Friday, said James Hardway, assistant to department director Nelson Befitel. The citations resulted from an inspection following a March 29 worksite accident; fines total $54,000, he said.
James Nutter, Island Recycling president, issued a statement yesterday saying claims that the company was not qualified to be awarded the Mililani bid are "unfounded."
The company has most of the permits cited by Tam and Cox, he said. Nutter said it still needs a particular type of discharge permit but hopes to get that soon.
Nutter acknowledged receiving a notice from the city Department of Planning in May 2003 for 11 illegal structures. The company removed six structures in June 2003, a seventh was destroyed in the fire and "the company has filed applications with DPP to bring the remaining structures into compliance."
Tam yesterday said he is bothered by Island Recycling's problems. "We need to bring the things out in the open."
Tam also said he believes that there is a "questionable relationship" between Mayor Jeremy Harris and the company, and that preference is being given to the recycler, although he provided no specifics beyond the issues already raised about the firm.
Cox said he supports Tam's call for an investigation. Cox said he has asked the city to shut down Island Recycling's site because of its lack of permits. Instead, he said, the city has allowed the company to dispose of its post-fire waste at the landfill at no cost. "It's that kind of behavior that we're questioning," he said.
Lee said the city asked all three qualified recyclers on O'ahu to take part in the Mililani program, but that Island Recycling was the only one that chose to participate. The city pays the company $55 for each ton of mixed recylables collected that it ships out of state.
Island Recycling was one of two companies that submitted bids in February for the islandwide program and had the lower bid, offering to take $36.50 a ton. The other bid came from Honolulu Resource Recovery, which asked for $68 a ton. No contract has been issued pending council approval of money for the program.
Councilman Charles Djou said enough questions have been raised to warrant the investigation that Tam is seeking. "I think it's the only responsible thing to do."
Council Budget Chairwoman Ann Kobayashi said all council members want to see islandwide recycling become a reality but said she is concerned about the city giving "such a large contract to a company that has so many violations."
Rather than holding up financing for the program, the council could insert a proviso stating "we'll provide the money: go to a company without violations," she said.
Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com or at 525-8070.
