Waste management removal company vows to sue Hoboken after losing contract bid

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The CEO of a waste removal company competing for a bid to pick up Hoboken’s solid waste and recycling said “see you in court” last night after the council voted to give a $1.98 million contract to their current vendor.

Gary Giordano is the CEO and President of JSI/Galaxy Carting, which is a fourth-generation owned business that has solid waste removal and recycling contracts with a variety of North Jersey municipalities such as Union City and West New York.

In an interview, he said that he believes the city council was “duped” into renewing its solid waste removal contract with Cali.

“To tell you the truth, I don’t think the council was aware of what was trying to be pulled on them. I think somebody, I don’t know who and I don’t why, but Cali has been servicing this town for a long time, don’t know how deep their roots run here, but I think they tried to pull a fast one on the council and slip this through and figure we weren’t going to say anything, but we were going to say something. It’s not fair,” said Giordano.

He explained that his company was going out to bid with a contract that would have saved the city $1.3 million over three years (the duration of the agreement).

He continued that city officials from the Department of Environmental Services (DES) had visited JSI’s facilities, inspected their trucks and checked out references.

” … This past Monday, we answered all questions and issues from corporation counsel that he sent on Friday at 5:30 p.m. And then on Tuesday, the council went into closed session, and today we’re here being shocked,” he began.

“We found out early today, we had a feeling last night that something wasn’t right because nobody called to say ‘congratulations,’ we had a bad feeling, but nobody called to say there was a problem. And now the council is being made aware of it.”

Thomas Scrivo, a partner at the law firm O’Toole Scrivo, spoke during the public portion of the meeting on the behalf of Cali Carting, Inc., which ultimately compelled Council President Jen Giattino to request an executive session to further discuss the matter.

He described five reasons why city officials with the Department of Environmental Services recommended that the city reject the lower-priced bid, going so far as to say that it misrepresented its bid by artificially deflating it.

“The recommendations, from your professionals to reject their bid, is because there are five, material, non-waivable fee events in that low bid,” began Scrivo.

“The first reason is the insurance certificate for environmental pollution coverage that was not submitted with the bid. That is a material defect. The second reason is the failure for JSI to provide the diesel retrofit compliance certificate, which is actually a legal case that was decided here in Hudson County by Judge Peter Bariso against JSI involving their bid with Bayonne where they did the same exact thing, and failed to provide compliance with the diesel retrofit program,” Scrivo explained.

” … The final reason the rejection of the bid by JSI should be upheld is that it misrepresented information. You had asked what were the contracts that were performed and completed since 2010, and JSI listed the township of Cedar Grove. That contract was not completed, in fact GSI was terminated from that contract in 2015 for failure to perform.”

Scrivo added that he was privy to that information because he was corporation counsel for Cedar Grove back at that time, reiterating that there were plenty of examples to show “material representation warranting the rejection of that bid.”

Giordano was infuriated by Scrivo’s claims and gave his own perspective during our one-on-one interview

“Cali’s lawyer brought up non-compliance with USDOT. What he was saying was that there’s a head sheet that you do every two years that you send in to DOT where you tell them how many trucks and drivers you have and if there are any changes from two years prior,” began Giordano.

“That form also shows how many trucks were out of service; we had zero put out of service by the state police. Cali had eight trucks out of service. In fact, four of them tipped over and caused major accidents. One of them hit a tollbooth on the New Jersey Turnpike, and two months ago one flipped over on the Turnpike. They shouldn’t even be allowed on the road,” he exclaimed.

He was particularly irate when the Scrivo claimed that Cedar Grove banished JSI for failure to complete the contract, stating that they took over a contract from federal bankruptcy court and that they were never terminated or asked to leave – it was a mutual agreement to put the contract back out to bid.

He was still astonished by the city’s actions between last Friday through yesterday’s council meeting.

“I really don’t know why the city changed their mind. I really, honestly don’t know. I think they were very misled, I think a lot of information was held back from them,” Giordano stated.

“Our attorneys will now start a lawsuit against the town, and the town will have to show just cause why they didn’t save the taxpayers $1.3 million and why they didn’t award it to the lowest bidder, most responsible bidder. Yes, there were flaws, but Cali too has flaws in its contract. It’s really a shame, it shouldn’t be this way.”

The vote to approve the Cali Carting contract passed 8-1, with 1st Ward Councilman Mike DeFusco abstaining.

DeFusco said today that he abstained since the administration lacked “a compelling argument” as to why they wouldn’t want to save the taxpayers over a million dollars.

A city spokesman said the city does not comment on ongoing or pending litigation.

17 COMMENTS

  1. I am not sure why a person like Gary Giordano or a company like JSI/Galaxy Carting is even allowed to enter a bid. Gary and his host of “companies” through the years have been sued for not paying employees, unsafe working conditions, and illegal disposal of waste just to name a few. Anytime things catch up to him, which is often, he has declared bankruptcy and left employees and fellow tax payers on the hook.

    Guys like this are the “Bernie Madoffs” of the small business world.. constantly ripping off tax payers and hiding under a new LLC each week.

    Here are a few examples of what Gary can do for you…

    -Scammed Somerset County and was sued for over $1M dollars in 2014
    https://www.mycentraljersey.com/story/news/local/somerset-county/2014/06/12/somerset-sues-recycling-frm/10375217/

    -Filed for Bankruptcy in 2015
    https://hudsoncountyview.com/galaxy-recycling-jersey-city-files-chapter-11-bankruptcy/

    -Ordered to pay $1.2M for failing to pay employees proper overtime
    https://www.law.com/njlawjournal/almID/1202789548248/Waste-Hauler-Agrees-to-12M-Settlement-in-Overtime-Suit-by-Trash-Collectors/?slreturn=20190304163516

    -Thrown out of Union city
    https://hudsoncountyview.com/stack-rips-galaxy-recycling-seeks-jcia-union-city-shared-services-contract-bids/

    -Thrown out of Newark
    https://www.nj.com/essex/2018/09/first_street_sweeping_and_now_recycling_residents.html

    • All i see is accusation’s … As a tax payer how does this save me money? Going with a bidder that is over a million dollars more expensive then the lowest bid? I’d look into that personally…. wasn’t Cali the last name of the mob boss just killed ? Follow the money perhaps ?

    • No He is raising taxes and throwing away 1.3 million election time is close gotta get him out

  2. Mark M you are a convicted felon that drives for Cali You don’t live in Hoboken you are a text message tough guy grow up. They still do Union City and I couldn’t even read the rest of your stuff when I found out you were the guy that smashed the toll booth on the turnpike drunk and had the turnpike tied up for hours

  3. Bankruptcy wrong company please get your facts straight Didn’t realize you were an alcoholic that work for the Competition

    • Nobody abstains more than little Miss Jabbour… Miss Jabbour throws fits and abstains as much as Mr Mike.

    • As usual DeFusco’s a nasty cyber attack team swings jumps in to protect him.
      No one on the City Council throws fits more that DeFusco.

  4. Not sure why it’s all okay for the company that’s under scrutiny to be the low bidder by a million plus and not be awarded the contract

  5. This is the Zimmer 3.0 idiocy continuum that allows major projects like Washington Street and the Southwest park go over by millions and then argue over plastic bags, dog poop and scooter laws nobody will ever enforce.

  6. Cannot believe the administration is this stupid the encumbrance Uncle the gangster from Staten Island is dead they are not going to get any pay off some him anymore should have saved the city to 1.3 million and look like heroes instead of backing a gangster and getting nothing Yes

  7. Eight of the City Council voted not to get into contract with these guys.
    I think they made the right decision.
    If you don’t get rid of them in November.
    Did DeFusco abstain as to not to upset his political backers from outside of Hoboken ?

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