OFFICE OF SUPERVISOR JERRY HILL

PRESS RELEASE
For Immediate Release
Contact: Eric Pawlowsky (650) 363-4314

November 24, 2008

Supervisor Hill Requests Grand Jury Investigation of SBWMA

Process for Selecting New Collection Services and Facility Operations Contractors Flawed

Redwood City, California – San Mateo County Supervisor Jerry Hill is calling for a Civil Grand Jury
investigation into the SBWMA’s contractor selection process for collection services and the operation of the
proposed new Shoreway Environmental Center. Hill sent a letter to the Grand Jury Foreperson on November 7,
2008.

“This inquiry is part of my ongoing due diligence to determine whether the SBWMA’s contractor selection
process for Collection Services and Facility Operations was conducted in a fair, transparent, and unbiased
manner,” said Hill. “The integrity of the process is essential to upholding the public’s trust and ensuring that
these services are provided in the most cost-effective manner possible”.

In July, SBWMA recommended two firms, Hudson Baylor Corporation and South Bay Recycling, be
shortlisted for further consideration as the Authority’s facility operations provider. In August, SBWMA
recommended NorCal Waste Systems of San Mateo over three other firms, including incumbent provider
Allied Waste, as its collection service provider for a ten year term beginning January 1, 2011. The
recommendation has not been approved by all of the Authority’s members. Allegations of bias on the part of
SBWMA Executive Director Kevin McCarthy have surrounded the process ever since.

Among the evidence Hill provided the Grand Jury:

! A letter from McCarthy to elected officials containing disparaging newspaper articles about Allied
Waste’s operations and emails from bidders lauding the transparency and integrity of the bidding
process; the e-mails were later found to have been solicited by McCarthy.
! An e-mail from BEST Corp. General Manager Louie Pellegrini to Supervisor Hill recounting an
incident where McCarthy allegedly threatened BEST with the loss of a business partnership with
Hudson Baylor, one of the shortlisted Facility Operations contractors.

McCarthy was removed from the Facility Operations Contractor Selection Committee shortly after these
details emerged.

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“Whether these actions are indicative of a biased process remains an open question,” said Hill. “The Grand
Jury can serve the community well by conducting an investigation”.

Hill continues to maintain an open mind on the merits of all proposals and any legitimate requests for
reconsideration.

The 19-member civil grand jury is a volunteer body authorized by the state constitution as a "voice of the
people and conscience of the community." Public officials and agencies must respond to grand jury reports,
although the body has no power to compel adherence to its recommendations.

Formed in 1982 to consolidate trash collection into a regional service, the South Bayside Waste Management
Authority is a joint-powers authority made up of twelve member agencies: the cities of Atherton, Belmont,
Burlingame, East Palo Alto, Foster City, Hillsborough, Menlo Park, Redwood City, San Carlos, San Mateo;
the County of San Mateo; and the West Bay Sanitary District.

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