NSWMA Says Southern Dallas Recycling Proposal Deserves Close Scrutiny

DALLAS, Sept. 19, 2011 /PRNewswire/ -- A news release touting a proposed $100 million recycling facility at the McCommas Bluff landfill makes it clear that the developer does not require a flow control ghost tax to build the project.

"This supports our position that a flow control ghost tax is unnecessary," said Tom Brown, Texas Chapter Chairman of the National Solid Wastes Management Association.  "A flow control ghost tax will cost Dallas businesses $19 million a year and make the city less competitive in the marketplace for job growth and business expansion."

"The claims made in the Organic Energy press release should be fully vetted and compared to proposals from other leading firms, which are not at the table," said Brown.  "Ironically the city has used information from these firms to back a push for recycling but has never asked them for specific proposals on how to best manage the city's waste stream."

"There are other options available that would provide income for the city more quickly, guarantee income, create job opportunities in Southern Dallas and would not be subject to years of costly litigation," said Brown.  "Each proposal needs to be spelled out in a written contract so that guarantees in writing and the financial strength and experience of the bidders can be fully vetted."

For example, the Organic Energy press release only offers to share "profits" with the city. That is not a guarantee of income.  The company does not presently own or operate any facility, and the plant in Roseville, California it has used as an example charges a tipping fee that is more than triple the amount currently charged in Dallas and only recycles 26% of the waste stream.  "A substantially higher tipping fee would cost Dallas businesses tens of millions of dollars," said Brown.

"The City of Dallas cannot make an informed decision on a multi-million dollar issue based on a press release, a couple of PowerPoint slides or visits to one or two plants selected by a vendor," said Brown.  "Based on Organic Energy's claims of processing capacity it would cost $400 million rather than $100 million to build the facilities with the capacity necessary to meet the targets described in the press release."

"In addition, Dallas should be very careful about obligating its waste stream for 20 years," said Brown. "A wrong decision could tie the city up in court for years and put a complete stop to any recycling or economic development efforts."

"The NSWMA is asking the city council to defer a decision on the flow control ghost tax and allow members to present other proposals that would generate the income the city needs in the short term and millions of dollars in additional cost savings over the next decades," said Brown. "Let's work together to make the right decision for the citizens of Dallas."      

SOURCE National Solid Wastes Management Association