Fort Worth removes minority business requirement in $479 million trash contract

The Fort Worth City Council has voted to eliminate the requirement that the Waste Management Authority hire minority- and women-owned businesses for a $479 million garbage disposal contract.

The move, approved by the City Council on a 9-2 vote at its May 14 meeting, comes after months of a spike in trash collection failures. Council members Chris Nettles and Jared Williams voted against the change, citing concerns that the vote would set a precedent for contracts in other cities with minority business requirements.

“This is an important vote, but this is more important than just a vote,” Williams said before the vote. “It's about where we invest our money, and I want to invest in small businesses and Fort Worth businesses. ) We are concerned that we are setting a precedent by removing the requirement.”

The contract amendment allows Waste Management and the city to reduce or eliminate the number of households served by Fort Worth-based Black-owned Knight Waste Services. When the contract with Knight Waste Services began, the city collected trash from approximately 142,000 homes. Due to the city's growth, that number now exceeds 256,000, Public Sector Waste Management Manager Steve Keller said at the meeting.

Knight Waste Services has served as an exclusive minority vendor in waste management for over 20 years. The business is run by brothers Marcus E. Knight and Richard L. Knight, who took over the company from their late father, Richard Knight Jr., a former Dallas city manager and businessman. The brothers declined to comment on the report after the vote.

The Waste Management Authority proposed removing the minority requirement for businesses, per the council's agenda. The company was previously required to subcontract with companies that were at least 25% minority-owned.

According to city data, Waste Management and its contractors attempt about 1.1 million services each month. From October to March, the city recorded about 1,600 missed collections each month.

Environmental Services Director Cody Wittenberg said May 7 that to meet industry standards, Waste Management must not exceed 1,100 missed collections per month.

Mr Nettles and Mr Williams attempted to table the matter until the June 11th meeting, but the motion was defeated by other members. They expressed concern about removing diversity requirements, saying the measure could send a negative message to small and minority-owned businesses.

Williams said the vote is not just about the waste management contract, but also whether the city is willing to address the “long-standing problem” of investments that don't reflect the city's diversity. He said less than 5% of the roughly $500 million invested in city contracts goes to Black-owned businesses and less than 20% goes to Latino businesses.

“We're not meeting our goals. I don't know who's to blame for that, but it's a sad situation that (minority businesses) are not meeting their goals,” Williams said.

Last year, when reports of people forgetting to pick up trash increased, the city gave Waste Management a six-month exemption from the 25% requirement. The waiver expired on May 8, allowing Waste Management to take over Knight Waste Services' trash routes to provide more consistent service.

Wittenberg has previously said the city has not ruled out extending the exemption, but Williams' attempt to revisit the topic at the May 14 meeting has the support of other City Council members. I couldn't get it.

City Councilman Charlie Lauersdorf, who has been a vocal supporter of eliminating the minority requirement to improve trash collection, said that Waste Management and Knight Waste Services have no plans to improve trash collection issues. He said he supports the change because it gives him “ample time” to correct the issue without causing any harm. .

“What we need to remember is that it's not Night Waste Services or Waste Management that's next to the trash can. It's the City of Fort Worth. So we're the ones who are going to solve this.” is responsible,” Rauersdorf said. “Our residents don't care what's next to the trash can. They just want basic services.”

City Councilwoman Gina Bivens said she wants to see Fort Worth's minority-owned businesses succeed. She chose to vote in favor of eliminating the minority business requirement, saying “decisions must be made on a business basis.”

He said Knight Waste Services is the only minority-owned waste collection company in the state. She said the company has not completed 25% of its contract with Waste Management and has no other local contractors available.

“This doesn't feel good, but I know the reality is that if you look for 25 percent in this region, in this state, you won't find it,” Bivens said.

Keller, the Waste Management representative, said the company may continue to contract with Knight Waste Services, but the percentage of work will be low.

Mr. Nettles and Mr. Williams supported lowering the required percentage of the contract Knight Waste Services is expected to complete, but other members said the council may revisit the topic in the future. Stated.

“To completely review (this requirement) and take it out of the contract is absolutely heartburning when we can achieve better percentages,” Nettles said.

Mayor Matty Parker told the Knights, who attended the May 14 meeting, that she was “grateful” for the partnership between the City of Fort Worth and Waste Management.

“We're in this position because we haven't fulfilled our promise to our residents to make sure their trash is picked up once a week,” Parker said. “If there's one thing we've all learned, it's that when you mess with people's trash, they're the first to complain.”

Cecilia Lenzen is a government correspondent for The Fort Worth Report. To contact her, cecilia.lenzen@fortworthreport.org or @bycecilialenzen.

At The Fort Worth Report, news decisions are made independent of board members and financial supporters.Read more about our editorial independence policy here.

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