GREAT WESTERN RECLAMATION, INC.1976

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Cerritos rebid their contract in 1973. The new rate for single family residential service, once a week pickup, is $1 .62 per month. The former rate was $1 .75. They received light competitive proposals and the quality of service is very good. Bill- ing is by the City on the water bill . City does not have the right to audit finincial records but rate adjustments are negotiated based primarily on rate of inflation. Contractor has exclusive rights on residential collection but not on commercial . Cerritos population is 47,000. Palms Springs bid their contract in 1972 converting from municipal operation to use of private contractor. The contract bid was $4.00 a month but this includes backyard pickup twice a week. Five firms submitted competitive bids . Both residential and commercial pickup are exclusive to the contractor. Billing is by the contractor. City is able to audit financial records and adjustments are generally based on inflation. Palm Springs population is 28,000 summer and 40,000 winter. SURVEY DATA Four exhibits have been prepared by the BAMA team to assist the City Manager and City Council in gaining a perspective on prevailing practices in the industry and how the Santa Ana experience fits into the total picture. These exhibits are described as follows: Exhibit A is a survey of the eight largest Orange County cities including Santa Ana. It shows the name of the contractor, the rate of payment, method of adjustment, disclosure of financial records, start and length of current contract, frequency of pickup, earliest starting times, amount charged to the customers and other data. Exhibit B is a survey excluding Orange County cities of residential collection operations in all nine cities of Southern California over 100,000 population, except for Los Angeles. Eight of the nine cities use municipal forces for the collection of refuse rather than through private contract. The amount charged per month, the per capita cost, and other pertinent information is included. Exhibit C is a survey of the same nine Southern California cities with respect to commercial refuse collection. In all cases except Long Beach and San Bernardino commercial collection is done by private firms. Most of them provide for a number of commercial contractors competing for the business. Only in two cases , Riverside and Santa Ana, does the contractor have an exclusive contract. The monthly charges for 3 cubic yard container are also shown. Exhibit D is a comparison per capita refuse collection costs for the larger cities of Orange County. GENERAL INFORMATION Refuse collection is generally accepted as a governmental responsibility because it is so closely connected with public health and welfare. Preparation, storage, collection and disposal of solid wastes are therefore subject to public regulations at all govern- levels. The courts have held that in this regard a municipality acts in its governmental capacity and not in its corporate or private capacity when handling solid waste. Although adequate solid waste service is a public responsibility, the actual operation of the system may be either by municipal forces, contractors or private firms. A survey by the American Public Works Association of 661 North American Cities in 1973 indicated that only 39% have municipal refuse collection service and the remaining receive service from the private sector, generally by contract between the collector and the municipality. In some cases private collection is performed under franchise or by direct negotiation with individual residents. In Orange County only two govern- mental agencies have departments and personnel for the actual collection of refuse. These are Newport Beach and Midway City Sanitary District, the latter serving generally the city of Westminster. 3