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Resolution Establishing Curbside Rate <br /> April 1, 1996 <br /> Page 4 <br /> Commercial/Residential Bin Service <br /> Great Western Reclamation currently collects the bin waste using <br /> front-loading bin trucks. All of the City' s commercial and <br /> residential bin waste is currently being hauled to a Materials <br /> Recovery Facility (MRF) for sorting. <br /> With the proposed system, Great Western will continue using the <br /> same vehicles, however, they will revise their bin routes so that <br /> all "dry" loads (those that are high in recyclables) will go to MRF <br /> and all "wet" loads (those that are low in recyclables) will go <br /> directly to the landfill. This system has the advantage of having <br /> less contamination of the recyclables and reduces the cost of <br /> sorting the trash with no salvage content. The proposed program <br /> expected to increase bin service diversion from 16% to 19% . <br /> The changes in the City' s bin services require a much shorter <br /> implementation period. Great Western Reclamation can reroute the <br /> system within eight to twelve weeks. The program, if approved this <br /> month, will be implemented by July 1, 1996 . <br /> The proposed rate paid by the commercial bin customer (3 yard bin, <br /> once-per-week pickup) will be decreased by $2 . 59 per month (from <br /> $73 . 57 to $70 . 98) ; the proposed rate paid by the residential bin <br /> customer will be decreased by $2 .79 per month (from $89 . 86 to <br /> $87. 07) . These decreases reflect the reduction in the landfill <br /> rate and a one percent increase in the program surcharge to cover <br /> the increase in the consumer price index. In future years, changes <br /> in Great Western Reclamation' s rate will be 75% of the consumer <br /> price index, up to a maximum increase of 7% . <br /> Payment to the City <br /> The proposed system is expected to generate a savings of <br /> $2, 581, 200 . The cost of the COP' s is expected to be $1, 199 ,700. <br /> The difference - which is equal to the savings - is to be paid to <br /> the City. Great Western Reclamation has estimated the savings at <br /> $1, 381, 500 per year and is willing to guarantee the savings each <br /> year of the contract. <br /> Requirements of AB939 <br /> The proposed changes in the City' s curbside and bin recycling <br /> program are estimated to greatly increase the percent of refuse <br /> that is diverted from the landfill. With these changes and the two <br /> construction and demolition agreements recently approved by the <br /> City Council, Santa Ana ' s diversion is expected to reach 48%. <br /> Public education efforts to encourage the community to generate <br /> less waste are estimated to improve the City' s diversion by 2%. <br /> Together these improvements will allow the City to reach its AB939 <br /> goal of reducing its waste stream by 50% by the year 2000. <br /> 7 5BS 344 <br />