Houston recycling negotiations complicated by EcoHub allegations
- Houston Mayor Sylvester Turner's recent decision to select FCC Environmental Services for a new $57 million recycling processing contract has led to mounting questions about why the city abandoned previous plans for a mixed waste processing system. While this "One Bin for All" plan from EcoHub was started by his predecessor, Turner's administration gave signs of approval as recently as last year after he took office, as reported by ABC 13 and other outlets.
- EcoHub CEO George Gitschel has now gone public with allegations of an unfair bidding process and potential corruption. According to Gitschel, the EcoHub proposal would have saved Houston $25-40 million in recycling costs and achieved a guaranteed diversion rate of 75% or higher. Gitschel has called on Houston's city attorney and controller to investigate, though so far they have shown no inclination to do so.
- Turner has become very defensive when asked about the One Bin proposal at recent press conferences and maintains that his administration never had any interest in it. He also said that EcoHub could have bid on the most recent recycling contract, though Gitschel counters that the terms were written to exclude his company. The Houston City Council is expected to vote on the FCC contract as early as July 19.
Gitschel has been working to bring the EcoHub mixed waste processing concept to fruition for more than a decade, fighting skepticism from municipalities and what he views as an effort by major industry companies to protect a status quo geared toward disposal over diversion. In 2013, the city of Houston appeared to agree with his ideas and submitted the One Bin concept to win a $1 million grant from Bloomberg Philanthropies. EcoHub later won a city contract to bring this concept to life in 2015. Despite ongoing assurances from Houston officials, the negotiations dragged on for years and outlasted Mayor Annise Parker's administration.
After taking office in January 2016, Turner received a recommendation from city staff to seal the deal but ended up negotiating a short-term contract extension with Waste Management that spring. Then, to Gitschel's surprise, the city put out a new request for proposals for the recycling contract in October 2016 that he said was designed to essentially make EcoHub ineligible for multiple reasons. While Turner has pitched the decision to award that contract to FCC as a financial win, and touted the return of glass to curbside programs after Waste Management dropped it, Gitschel said his plan would have still been much less expensive for the city.
According to Gitschel, this multi-year saga in Houston contains many other details and players with potential ethical or legal violations along the way. In the short term, these new details from EcoHub have added a surprising new element to a contract approval process that was already noteworthy due to U.S. newcomer FCC's selection over incumbent Waste Management in their headquarter city. In the long term, this could carry on past whenever the Houston City Council makes their decision and lead to an ongoing, larger discussion about the viability of mixed waste processing within the industry.
- ABC 13 After 3 years, $1 million, city has little to show for recycling proposal
- The Texas Monitor Houston’s trash deal smells, wants probe into possible bid rigging, recycling inventor says
- Click2Houston Recycling company hold press conference after Mayor Turner's announcement
- City of Houston One Bin for All
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