HomeMy WebLinkAbout03-21-1996MINUTES OF THE ADJOURNED REGULAR MEETING
OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA, CALIFORNIA
MARCH 21, 1996
CALLED TO ORDER
6:18 P.M.
CITY COUNCIL CHAMBERS
22 CIVIC CENTER PLAZA
ATTENDANCE:
COUNCILMEMBERS
Present:
MIGUEL A. PULIDO, Mayor (6:42 p.m.)
ROBERT L. RICHARDSON, Mayor Pro Tern
TONY ESP1NOZA
TOM LUTZ
PATRICIA A. McGUIGAN
LISA MILLS
TED R MORENO
Absent: NONE
STAFF
Present:
DAVID N. REAM, City Manager
EDWARD J. COOPER, City Attorney
WILLIAM Z. NAVAJA, Assistant Clerk of the Council
JANICE C. GUY, Clerk of the Council (6:45 p.m.)
WORKSTUDY SESSION
Refuse Enterprise - Santa Aha Recycling Program Proposal
City Manager David Ream reviewed highlights of the proposed FY 96-97 City Budget, projected a
$10.4 million budget deficit, and briefed the Council on cost reduction and revenue enhancement
proposals for dosing the deficit. According to Ream, one of the key dements to balancing next year's
budget was to transfer $1,381,500 from the City's Refuse Enterprise to the General Fund. Ream
explained this amount of money could be generated by redesigning the recycling component of the
City's refuse collection program, and then introduced Public Works Agency (PWA) Administrative
Services Manager Teri Cable and Enterprise Coordinator Will Hayes.
CITY COUNCIL MINUTES
92 MARCH 21, 1996
Cable delineated the following as the goals of the proposed Santa Ana Recycling Program:
- to address the City's obligation to reduce waste by 50% by the year 2000
(required by state law);
- to generate $1,381,500 in additional revenue for 12 years; and
- to provide rate stabilization for customers.
Cable provided charts showing the amount of trash generated in the City by source and by type. She
noted that trash came l~om Commercial (30.4%), Residential (28.4%), and Industrial (13.0%) sources
and was mostly paper (28%), wood (17%), and yard waste (14%). According to Cable, the statistical
measurements were taken in 1990, the base year from which state-mandated waste reductions would
be calculated.
Cable reviewed the 1993 process that had produced competitive proposals from Great Western
Reclamation, Browning Ferris Industries (BFI), and Western Waste for trash collection, related key
elements of the contract eventually awarded to Great Western, provided charts to show how
competitive Santa Ana curbside and commercial rates were in comparison to other Orange County
cities, and summarized the Sanitation Districts' proposal to purchase the County landfill system.
Cable went on to describe the mechanics of the proposed Recycling Program, explaining customers
would sort green waste, recyclables, and garbage into separate City-provided containers which would
then be collected by automated side-loading vehicles. She indicated that 126,000 containers and 23
collection trucks would be purchased and financed through the issuance of 12-year Certificates of
Participation and that Great Western Reclamation would continue to provide trash services.
Cable explained the proposal was to extend Great Western Reclamation's current contract for 10
years, and in return the firm would:
- pay the cost of the Certificates of Participation;
- guarantee savings of $1,381,500 to the City annually for 12 years;
- not increase curbside rates for five years unless the Consumer Price
Index (CPI) exceeds 4%, in which case the maximum increase would
be 3% annually; and after 2001, rates would increase by 75% of the
CPI to a maximum of 7% annually; and
- accept all liability for the contract and indemnify the City.
Cable also noted the proposed program would increase the trash diversion rate from 19% to 40%.
Councilmembers discussed the proposal at length addressing among other issues: container sizes,
reduced rates for seniors and mobile home park residents, scavenging, additional truck traffic due to
the need for separate vehicles for each type of trash, commercial bin services, flat rate charge versus
CITY COUNCIL MINUTES 93 MARCH 21, 1996
a per can rate, possible City liability arising from the use of the new trucks, and possible obsolescence
of equipment prior to contract expiration.
RECESSED - 8:02 P.M. - 8:17 P.M.
Waste Management of Orange County President Bob Coyle, representing Great Western
Reclamation, briefly described the mechanical operations of the trucks proposed for use in the
Recycling Program and responded to questions on various aspects of trash collection.
PUBLIC COMMENTS
David Ross from BFI raised several issues regarding the proposal to extend Great Western
Reclamation's trash contract with the City including, but not limited to, the conduct of' a more
comprehensive analysis of the proposal, design ora customized trash collection system for Santa Ana,
impacts on street parking due to the use of side-arm collection vehicles, and use of public financing
by a $14 billion private company. Ross urged the City not to hurry in establishing the recycling
program, opining that waste diversion goals could by accomplished in a short period, and speculated
that the City's residents would benefit if the trash contract were put out for competitive bids.
In response to Florence Leach's inquiry, Mayor Pulido indicated no material recycling facilities were
proposed for construction in Santa Ana.
Dolores Otting from 5-Star Rubbish opined that if the City purchased the containers and garbage
trucks, any trash company, including her own small company, could bid to operate the contract.
ADJOURNMENT - 8:53 P.M. - To 6:00 p.m., March 28, 1996 at the Conference Room in
the Santa Ana Main Library, 26 Civic Center Plaza
Clerk of the Council
CITY COUNCIL MINUTES 94 MARCH 21, 1996