City has more cards to play
By Jeff Mayo Publisher
The agenda for tonight’s Sallisaw Municipal Authority (SMA) special meeting had two surprising items when released last week – a proposed agreement with the Tulsa law firm Hall, Estill and a proposed Letter of Intent binding the city to negotiate exclusively with CARDS Recycling, Inc. for 120 days.
CARDS made an unsolicited offer to buy the municipal landfill and the city’s trash collection service that was first reviewed by the SMA at a special meeting on May 1.
The attorney agreement was surprising, because if we are still in the investigative stage of determining what the landfill is worth and what we should do with it, then this proposed agreement with Hall, Estill is either too early or too late. Too early because the city has not taken time yet to get an independent analysis of the landfills value or issue a Request for Proposal to see what the market says the landfill’s value is. Or too late if the SMA is going to approve the letter of intent Monday. Too late because that means we are locked into dealing with CARDS, and the city is signaling it’s a forgone conclusion a deal with CARDS will be made.
We were told previously that this would be a slow-moving deal, if there was ever one.
From reading the story in Your TIMES, CARDS has provided City Manager Keith Skelton with the numbers for business acquisitions in the landfill “space” over the last two years. CARDS president Dan Christensen said it was not possible for someone to pay more than CARDS was offering.
What is the hurry to deal with CARDS? Shouldn’t the city find out for itself if this is a good deal? At the city budget meetings a couple of weeks ago there were two other entities interested in paying the same amount as CARDS’ offer right then. That tells me the CARDS price is likely too low.
If the city takes Christensen at his word, I think that is malpractice as a commissioner. If someone knocks on your door and makes an offer to buy your house, do you take the offer? Or do you check first to make sure the price you are being offered is a good deal?
I know a landfill is different because it requires a partnership, somewhat complicated terms and conditions, and a very, very long-term relationship. But the city’s dance card only has one company listed, and I think we should find out how many others are interested and give them a shot.
There have been comments that the landfill is losing money, and that creates the city’s motivation to sell. If that is the case, I’m surprised we hadn’t heard this before with a proposed RFP to find a buyer. Nope, it wasn’t until CARDS showed up that the losses — whatever they might be, if any — are a problem. Our first story about this issue showed the city’s made a profit most years.
I wrote a column about the landfill when this all started last month. My thoughts are still the same – figure out what the value is by either a qualified independent appraiser, or an RFP with wide circulation to get the most interest.
We need to hear from the market to know if we are getting the right price. It is the duty of the commission to protect the city’s assets, and approving the attorney agreement and LOI look to me like they do not have our best interest at heart. (The city’s elected commissioners serve and make decisions as board members of the Sallisaw Municipal Authority.)
The commission should not approve engaging Hall, Estill to provide legal services related to the landfill. The commission should not approve the proposed Letter of Intent with CARDS. It is too early to bind the city to negotiations with one company. This is not the way to a fair deal.
