GREAT WESTERN RECLAMATION, INC. A-76-42

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REQUEST FOR COUNCIL ACTION 2 June 27, 1978 6. Payment for standard curbside service shall be based upon a stipulated number of service units rather than a number of water meters, as presently used in the current contract. The number of service units shall be determined on January 1 and July 1 of each calendar year by the Director of Public Works. The service unit rate shall be equal to the average of the monthly rates paid by the six cities of Anaheim, Costa Mesa, Fullerton, Garden Grove, Huntington Beach and Orange for similar services. This average rate shall be established each year, based upon the rates in effect as of July 1 . All rates shall be independently verified by the City's auditor. The initial service unit rate determined as of July 1 , 1978, shall be effective upon the beginning of the term of the contract. In addition, in order to compensate the Contractor for recent labor adjustments, the new determined rate shall be retro- active to April 18, 1978 and the Contractor shall receive the difference between the new compensation and that paid during the same period under the existing contract. 7. In the event of bin service, the Contractor shall receive compensation by direct billing of the customers receiving such service. The bin service monthly rates shall be set by a schedule approved by the Director of Public Works. The schedule shall be such that the average cost of one collection of one cubic yard of refuse by the Contractor is equal to the average cost per cubic yard of collection in the four cities of Anaheim, Fullerton, Huntington Beach, and Orange, with such collection based upon the various types of bin service being offered to customers in Santa Ana. The average cost per cubic yard shall be calculated as of July 1 of each calendar year. 8. The Contractor may enter into agreements with bin service customers for certain collection services which might be in addition to or greater than the minimum collec- tion services required by the new contract. The Contractor may impose surcharges on customers to cover increased costs due to special collection problems such as: castor wheels where bins must be moved out so that they may be picked up and for extra rolling work necessary to move bins to the collection point. 9. Provision is made for the reduction of compensation to the Contractor during strike periods which might last more than ten normal collection days. The City Council may assess damages in an amount not exceeding the sum of (1 ) the expenses incurred by the City in providing collection or disposal services, and (2) fifty percent of the amount by which City revenue is reduced due to any reduction or refund of refuse fees granted by the City to the public. Refunds or reduction of payments of Con- tractor's bin service customers shall be the sole responsibility of the Contractor in the event of an extended termination of service due to strike. 10. The term of this contract extends to June 30, 1983 and thereafter to June 30 of such subsequent year as the parties may mutually agree upon. The City and the Contractor shall meet and confer during the period July 1 through December 31 of each calendar year preceding the calendar year in which the contract will terminate. 11 . In the event a charge for disposal of refuse at the City's designated disposal site is levied, the City of Santa Ana shall reimburse the Contractor monthly for all such charges. The City may elect not to reimburse the Contractor for charges as applied to bin service disposal , in which event the Contractor may impose a surcharge on bin service customers to compensate for such extra disposal charges. 12. The Contractor shall make its records reports and methods of accounting available to the City' s Auditor. Any report from the Auditor to the City resulting from the Auditor's review of Contractor's records shall be limited to a letter of compliance relating to accounting procedures and to the identification of Contractor's costs. The Contractor represents that since April 1 , 1978 his accounting procedures have permitted separate accounting and identification of revenues and expenditures related to operations in the City of Santa Ana. Since new charges will be based upon average rates in other cities effective July 1 , 1978, they cannot be exactly determined at this time; however, it would appear that residential rates will increase approximately 5% and commercial bin rates will increase approximately 20%. This would amount to an approximate ten cent per month increase for standard residential service. The actual increase on bin service would depend upon the type of service presently being given, such as the size of the bin and the number of pick-ups per week. After innumerable hours of negotiation conferences between Great Western representatives and members of City Staff and Council , it is felt that a fair and reasonable contract has been developed. Both the Contractor and the City have made certain concessions during the negotia- tions in an honest effort to arrive at a contract which could be acceptable to both parties. Great consideration has been given that the citizens of the City of Santa Ana receive the optimum service at the lowest, fair cost, consistent with dependable service. Approval of the proposed contract is therefore recommended.