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/i <br /> .ng „i�S <br /> REQUEST FOR COUNCIL ACTION 01, <br /> PREPARED BY Bruce C. Spragg DATE OF COUNCIL ACTION 2/ /yam' <br /> DATE 3/29/78 PHONE 4131 n.flI C. , <br /> SUBJECT REFUSE COLLECTION CONTRACT <br /> 44APPROVED • ht . <br /> ,-444,11 C <br /> DEPARTMENT _ E DEPUTY CITY MANAGER ASSISTANT CITY MANAGER CTFRK OF TIE CO , IL <br /> RECOMMENDED ACTION <br /> 1 . Approve in concept the "average rate proposal" for extension of the City' s <br /> refuse collection contract; and <br /> 2 . Authorize staff to prepare a written contract for Council review within <br /> forty-five ( 45 ) days. <br /> BACKGROUND: <br /> On January 3 , 1978 Council directed staff to resume negotiations with the <br /> City' s refuse contractor and attempt to conclude agreement within 90 days for <br /> extending the City' s refuse collection contract. In compliance with this <br /> directive, the City Manager, Director of Public Works, and the Finance Director <br /> ( frequently accompanied by Councilman Yamamoto) have met nine times for ex- <br /> tended discussions with Mr . Tom Blackman, Chet Jackson, and Verlyn Jensen who <br /> represent the contractor, Great Western Reclamation, Inc . <br /> RESULTS OF NEGOTIATIONS: <br /> Both negotiating teams have reached substantial basic agreement on most sub- <br /> stantive issues . These areas of mutual agreement include : <br /> 1 . Contractor' s Accountability. The accounting records of the contractor <br /> will be made available for inspection to the City and its auditor for <br /> verification and determination of contract compliance. Moreover, effec- <br /> tive at the beginning of the contractor' s new fiscal year on April 1, the <br /> accounting system will be revised so as to enable the separate identifi- <br /> cation of the contractor' s income and expenses resulting from their opera- <br /> tions solely within the City of Santa Ana. A periodic accounting will be <br /> provided to the City for review and verification by its auditor as may be <br /> more specifically required in the written contract. <br /> 2 . Term of Extended Contract. Any revision or extension of the existing 14 <br /> year old contract will be for a term of five years, with the rates for the <br /> first three years to be fixed initially, or at least the formula for deter- <br /> mining them to be established initially for the first three years, and the <br /> rates for the remaining two years to be negotiated after the end of the <br /> first year. <br /> 3. Billing Rate Basis. It has been mutually agreed that a "service unit" <br /> (dwelling units and small businesses ) count should be used as the basis <br /> for rate payment because it reflects refuse workload , not perfectly, but <br /> more accurately than the number of water meters in the City. In addition, <br /> a majority of the comparable cities in Orange County use the dwelling unit <br /> as a basis of rate payment. A conversion from water meters to dwelling <br /> units has been established calculated upon the existing monthly payment to <br /> the contractor so that no additional expense will be borne by the City for <br /> this billing factor conversion; the current number of residential dwelling <br /> units in the City has been established at 41 ,700 , which excludes com- <br /> mercial (bin) services billed directly by the contractor. This service <br /> unit count will be adjusted semiannually to recognize growth. <br /> OLUTION <br /> 24' 0 <br /> mz -1- <br /> 0 m <br />