GREAT WESTERN RECLAMATION, INC.1978

Home Browse Search

REQUEST FOR COUNCIL ACTION Refuse Collection Contract cannot be considered as actual complaints. Some of them are misses, and the company promptly follows up with a supervisor in a pickup truck to take care of the missed collection on the same day that the call is received. Some occur when the homeowner puts out his trash after the crews have already been through the area. In fiscal year 1974-75 , the number of service requests amounted to 1 ,042. The 724 received in fiscal year 1975-76 are a decrease of over 30% from the prior year. Service requests for the current fiscal year through September 30 , 1976 amount to 182. Projecting this figure for the full year would indicate that about 728 will be received which compares closely with that for the fiscal year just completed. The quality of service has been consistently high since the initial break-in period in late 1963 and early 1964. Our complaint level was well below that of other large cities in Southern California as shown in previous studies and compares favorably with the other seven larger Orange County cities using the contract method of collection. COMPETITION IN THE MARKETPLACE Collection contracts should be of sufficient duration to make it feasible for the contractor to purchase and amortize the equipment and facilities necessary to provide effective service. Three to five years is generally recommended as a reasonable period for amortization of vehicle costs. Capital investment costs for headquarters buildings and repair and yard facilities would require a longer period. With the completion of the present contract period, in 1978 a total of 15 years will have elapsed since the contract was awarded to Great Western Recla- mation in 1963. f There has been criticism voiced by business and industrial firms regarding the exclusive right of the contractor to provide commercial bin service. While strong arguments can be advanced for an exclusive franchise or contract for the collection of residential refuse, the same arguments generally are not 1 valid for commercial bin service. Many other cities, while providing for an I exclusive contract for residential pickup, do allow open competition for the provision of commercial bin service. Some of the larger cities in Orange County that permit this type of competition are Costa Mesa, Garden Grove and Newport Beach. They report that no problems have resulted from this approach. PUBLIC HEARING A public hearing is not a legal requirement for consideration of the contract extension. There has been considerable interest expressed by the public in the past regarding the trash contract, and it is felt by the staff that a matter of major policy such as this should be set for public hearing. This will provide the opportunity for the citizens and business interests of the City to express their views to the City Council. -3-