Legal Victory In Sunrise Will Help Southern Waste Compete

Southern Waste Systems won a legal victory in its battle to haul off construction and demolition debris for recycling in cities that have franchised waste agreements.

On May 31, Broward County (Florida) Circuit Court Judge Catalina Avalos dismissed criminal charges the city of Sunrise had brought against the Lantana-based company. The city made it a crime for any company besides its franchised waste service to pick up debris from construction sites. Sunrise has a franchise agreement with Fort Lauderdale-based Republic Services.

While few cities make it a criminal ordinance, many cities in Broward and Palm Beach counties have franchise agreements for waste collection that include residential, commercial and roll-off (construction and demolition). In Broward, seven cities have franchise contracts for all these services with Republic and eight are signed with Houston-based Waste Management. In Palm Beach, six cities have franchise deals for roll-off pickup with Waste Management.

Miami-Dade County has open competition for construction and demolition pickup.

Southern Waste collects debris from construction and demolition to recycle the majority of it in one of the local plants owned by sister company Sun Recycling. The materials are resold for construction. Southern Waste government affairs liaison Phil Medico said its recycled materials are LEED certified by the U.S. Green Building Council and used in many construction projects that aim to meet environmental standards.

The company has faced hundreds of citations in South Florida for violating city ordinances enforcing franchise agreements for solid waste removal of construction and demolition debris, Medico said. It is contesting them in court, but the ruling against Sunrise could be a turning point.

Judge Avalos ruled after a trial that Southern Waste provides recycling services, which is different from solid waste removal at these roll-off sites. Republic takes the debris to landfills.

The city attorney dropped criminal charges against Southern Waste GM Anthony Badala prior to trial. Charges against the project owner and roof company owner were also dropped.

"These people were inappropriately charged because Southern Waste isn't in the business of collecting and disposing of waste," said Orlando attorney Michael Gibbons, who represented the company. "We argued that the materials weren't solid waste, but recycled materials."

The ruling creates a precedent for Southern Waste to contest fines from other cities, because their franchise agreements have similar language, Gibbons said.

The attorney who represented Sunrise, Stuart R. Michaelson, and City Manager Patrick Salerno did not return calls for comment.

Republic Services spokesman Will Flower said construction and demolition debris recycling is not covered under its franchise agreements. The company did not get involved in the court case. Cities enforce the franchise agreements to ensure they collect franchising fees from the trash haulers.

It's not our issue as much as it is an issue for the city," Flower said.

Southern Waste recently won entry into the market in Delray Beach, which has a franchise agreement with Waste Management, after the city attorney decided to drop a code violation citation, Medico said. It also has a federal lawsuit against Coral Springs, Waste Management and the Broward Solid Waste Disposal District to gain entry into that city.

"We are committed to fighting this battle, regardless of how long it takes to open these markets," Medico said. "I'm sure WCI and Toll Brothers or any developer doesn't want to be told you have to use Waste Management and this is the price, whether you like it or not." South Florida Business Journal