03-21-1996 - Laserfiche WebLink

Home Browse Search

Cable delineated the following as the goals of the proposed Santa Ana Recycling Program: - to address the City's obligation to reduce waste by 50% by the year 2000 (required by state law); - to generate $1,381,500 in additional revenue for 12 years; and - to provide rate stabilization for customers. Cable provided charts showing the amount of trash generated in the City by source and by type. She noted that trash came l~om Commercial (30.4%), Residential (28.4%), and Industrial (13.0%) sources and was mostly paper (28%), wood (17%), and yard waste (14%). According to Cable, the statistical measurements were taken in 1990, the base year from which state-mandated waste reductions would be calculated. Cable reviewed the 1993 process that had produced competitive proposals from Great Western Reclamation, Browning Ferris Industries (BFI), and Western Waste for trash collection, related key elements of the contract eventually awarded to Great Western, provided charts to show how competitive Santa Ana curbside and commercial rates were in comparison to other Orange County cities, and summarized the Sanitation Districts' proposal to purchase the County landfill system. Cable went on to describe the mechanics of the proposed Recycling Program, explaining customers would sort green waste, recyclables, and garbage into separate City-provided containers which would then be collected by automated side-loading vehicles. She indicated that 126,000 containers and 23 collection trucks would be purchased and financed through the issuance of 12-year Certificates of Participation and that Great Western Reclamation would continue to provide trash services. Cable explained the proposal was to extend Great Western Reclamation's current contract for 10 years, and in return the firm would: - pay the cost of the Certificates of Participation; - guarantee savings of $1,381,500 to the City annually for 12 years; - not increase curbside rates for five years unless the Consumer Price Index (CPI) exceeds 4%, in which case the maximum increase would be 3% annually; and after 2001, rates would increase by 75% of the CPI to a maximum of 7% annually; and - accept all liability for the contract and indemnify the City. Cable also noted the proposed program would increase the trash diversion rate from 19% to 40%. Councilmembers discussed the proposal at length addressing among other issues: container sizes, reduced rates for seniors and mobile home park residents, scavenging, additional truck traffic due to the need for separate vehicles for each type of trash, commercial bin services, flat rate charge versus CITY COUNCIL MINUTES 93 MARCH 21, 1996