LAGUNA BEACH : City Urged to Review Trash Firm’s Record

Environmentalists are calling for the city to review the background of its trash hauler in the wake of disclosures that Councilwoman Lida Lenney and her husband owned stock in the firm’s parent company when she voted to approve a residential rate hike.

Lenney and her husband, George, acknowledged last week that they owned 1,000 shares of Waste Management Inc. in June when the councilwoman joined a 5-0 vote approving a 4% trash rate increase.

The California Political Reform Act prohibits any public official from influencing a government decision “in which he knows or has reason to know he has a financial interest.” Violations can result in fines of up to $2,000 per infraction.

Lenney said she wasn’t aware of the connection between Waste Management and its local subsidiary, Dewey’s Rubbish Service Inc., when she cast her vote. And many city officials and environmentalists have come out in support of Lenney, deeming her vote an innocent mistake.

Instead, they are calling for the city to look into allegations of ecological misdeeds by Waste Management that have been lodged by environmental groups and public agencies.

“We should be aware of the environmental record of companies we do business with,” Mayor Robert F. Gentry said. “I would support looking into (Waste Management’s) record, although I don’t think it would be fair to break our contract with Dewey’s.”

City officials have praised the Irvine-based waste hauler’s performance in Laguna Beach. But some citizens say that if the parent company has a questionable environmental track record, it shouldn’t profit from its subsidiary’s contract with Laguna Beach.

“It’s a real moral dilemma,” said Bill Roley, a local environmentalist. “Here’s a company (Dewey’s) you’ve been working with for 15 years. It’s always tough to dismantle a program that’s been working well. But it’s like not dealing with companies that have South African investments. I think Waste Management’s performance should be looked into.”

Waste Management officials have countered the allegations by pointing to studies done by cities and consulting groups that praise the company’s environmental policies.

The waste industry giant has been at odds with several environmental groups, including Greenpeace, which released a harsh indictment of the firm last year in a report called “Trash Into Cash--Waste Management Inc.’s Crimes & Misdeeds.”

David Ross, general manager of Dewey’s Rubbish, wasn’t available for comment.

Elisabeth Brown, president of the Laguna Greenbelt Authority, said it wouldn’t be the first time the community has rejected a company based on ecological concerns.

“I wouldn’t be averse to city staff looking into the company’s background,” she said. “Laguna Beach is ready for that type of discussion. We’ve done it before. If it isn’t done here, then where can it be done?”

Regardless of their ecological concerns, residents may not get a new trash hauler before the end of the century. City officials said the current contract doesn’t expire before 2002.

Meanwhile, Lenney’s public record was defended by city officials. “Lida has impeccable integrity,” Gentry said. “I think it was clear that there was no profit motive in her vote. Her stock in Waste Management is barely a drop compared to their overall worth.”

State election officials said they will not look into conflict-of-interest charges unless a formal complaint is submitted.