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Amendment and Agreement with Great Western Reclamation <br /> December 7, 1992 <br /> Page 7 <br /> 5. The successful bidder will be required to have access to <br /> a materials recovery facility located in the area. There <br /> are presently only three such facilities in the county -- <br /> one in Stanton, one in Anaheim and the third which is <br /> owned and operated by Great Western in Irvine. <br /> Staff supports and recommends approval of a new five-year agreement <br /> with Great Western Reclamation. Great Western is an established <br /> employer located in Santa Ana with approximately 120 employees. ,A <br /> strong potential exists for implementation of a new MRF in the city <br /> which will add 150 to 200 personnel to the local economy. With the <br /> operation of such a facility, the potential also exists for the <br /> city to receive a "host fee" charged on trash processed at such a <br /> facility. <br /> Great Western Reclamation is part of Waste Management Inc. , a large <br /> international company which is well established in the refuse and <br /> recycling industry. In addition, Great Western is in a financial <br /> position to implement the recycling and composting programs <br /> required by the agreement and to indemnify the city should <br /> recycling efforts fall short. <br /> The proposed agreement will allow the City to continue quality <br /> refuse services, begin recycling and meet State mandates while <br /> maintaining competitive rates. <br /> FISCAL IMPACT <br /> The rate payable to Great Western Reclamation on January 1, 1993 <br /> will increase from $9. 71 to $10.50 per month for each curbside , <br /> unit. There will be no increase associated with this action to the <br /> customer in the present fiscal year. <br /> This agreement will provide for an increase in City revenues of <br /> approximately $300, 000 and a decrease in current City expenditures <br /> of approximately $188, 000 each year of the agreement. <br /> APPROVED AS TO FUNDS AND ACCOUNTS: <br /> In James aS saie",iJo �... <br /> '+d . a <br /> Executive Director Executive eirector <br /> Public Works Agency Finance & Janagement Services <br /> JGR/TLC/N46krg <br /> ' 14 7 <br /> 1 20 <br />