Loading...
HomeMy WebLinkAboutGREAT WESTERN RECLAMATION, INC.1976 co 0 d- $ o CO°On N ® 0 GR. cal a r, , 0 M ptGa�l N -i o N .-1 co' OZ 00 M r fn Act b4 0 M 0 N N v\. •-4 r • ra1/44 b4 a s::IH t3 0 0 co 0 Sal' N W N O O O d' 1-1 N 00 0 D+� F N 0 d' N N 61 O F CO C.) a: atN co N U .-I co N 0 0 00 o W rl o 1/40 NI d ' An& .--1co nn . b4 se- 0- 0 o N O Co .o o v) 0 41 d• CA v 0 N O CO N 0) N rI '. In N. .-t 0 rs 0 CO rn o CA o d' 09 N La N N b4 -i CO 04 09- se- CO 4CO C) 1/40 1-4 In N Le) 0 L•) d' N O CO N U) N 00 1/40 LI) N O) m 0) H 01 N d1O1 N 01 M A M N CO CO v-1 .42 64 H N 44 44 59 nrE 0 0 ri In - d' co CO % 0 N N N d- O . ._. CJ N- N M co ri N- M 01 # Z rn '0 44 H .•i 0) .-I 00 O d' 0) N N ri r-i M 49- N N CI N .-i --1 ZZ be- 4, - \• N # O r N- M O 0 .0 CO )1 O F to M 0) k 0 N c} M N N t V N01 N M V t0 d• N Mf -y .-i at N 0 M W 0 N- to t-, .L:1 C) to 09 v-I .-I 0 ri lA rI --I i j d3 N 0 0 CO . \' t� t V z N N 01 is O )p O O) 4I- 05 -54 N b ..2 0.' N �p N �O to pt 4I- M O 10 N -i 4t -d {00 M 44 04 CO LO en N pry. .b ri ` u }} 54 [ ` [ 3 QrI La -i it No 0 M -N-II CO N CO 0 �;. I ° 1 NI N N N in 0) d' N d' " . il [.J 01 rt N r-1N N 0)I 0 .0 d' �' ! '-+ M be- .-I N Cl N .-i .-1 S , PC b4 b4 b4 <C. 7 z o _W' F4 0 0 01 --i z•�•1 - ( 9 U 0 .-i rI 0 N M V co v N N 0 --I .-I M O • i'• L4 � '0 M Cl M 0) M ` P G S r M ri F N M r Z 09 d' b4 \- . I - e' O be • e Vis' 0 -i 0 00 W CI .-1 M 'O N M .4 .0 0 0 -i Cl 0 tEl 00 d' F Cl -i In ri 1/40 54 O M M 10 M M M rI Cl N -i F -onv� Z N ua 00 Mal 0 d' N N .0 •N IR 01 M N N .0 N 0 N N Ol 00 Y .--I e-1 N N N D. 01 - n 4r Q - In E9 N Cl 1/40 d' N M .-I0 0 000 0. M 44 0 --I --I 0-rase- OS M 09 0 CD N 0 II) --I N 00 .O 0 0 W 0) --I .D N 00 .0 N <t 01 Cl01 M --I d• b4 N N .0 rt .-I CO 59 to --I .-i M be- b4 In V d• d' N .-i CO 0 0 N' M 0 d' r0 40 N- M 0 CO to N 0 0 0 0 0 .0 W W M N '0 0 0 • 03- 44 O) n n n .O N v-I It 49 ri 0 d' d' rl M b4 M -t -i .•y M 59- N- -59- V} Cl H N M d' d' O M Ct N N 0 In O N O O d- N .0 ^01010f In W O .0 N In N ri .-I ri 0) 0 M ri M 1/40 --I M It v-I Y M 09- N ri ri N 1-11-1 ri 49 tel b4 g A A A al .0 0 NI ¢ 0 d' --1 N Cl co .0 d' .0 - C) .0 1-1i N CO I I H Da n 49- I 1 ri ri Y ri M b4 N I I r4 Y 0 M MO ri I 0 -, b4 H 'd n Y Q It1 CS LO DI tO O N 00 .0I It 0 I-I .O E. It N In I I I •!'l 0. co . I I of I 'L) ) --I N b4 o I I 0 I Q `-' M L() ri 44 a) --i Y c3 A H C ti N 0 0 0 .0cal Ln 0 cdn O h H H G) C .a at .n H O cd Cd a-)-) g 4-1 cd 4i H Cd F C H C ~ .aC a) 0 3 0 Y Y Y >. U a) H O a-I II r-i C C) 01 C F C rn LL .O Cu cd U H In H 0 Cl ® rl 1-i cd O H M az. -re H d) 0 at d) •0 H E co F d) C) In U 0 O (0. A °C 0 Y Z '-i H .-I 0 -b I CD Y H E 6 ri t0 ..d ka Cd V Cd O cd N Cd 4-1 C) O d) RIC Q $ 0 C 00 n U) OI 0 Y Y 0 I044')+ R. l Fr. N C rI Y a n Cd 0 0, 0 'LS 0 Q U 4i -.1 Q 1* a O0 n G F 0. C .e Q0 v - t s` 1. Emergency Services Dispatcher, Fire Department , on the motion of Councilman Ward, seconded by Councilman Yama- moto and carried (7 : 0) unanimously. 2. Water Foreman , Public Works Department , on the motion of Councilman Ward, seconded by Councilman Brandt and carried (5: 2) with Councilmen Evans and Yamamoto dissenting. 3. Water Plant Operator, Public Works Department, on the motion of Councilman Yamamoto , seconded by Councilman Ward `= and carried (4 : 3) with Councilmen Brandt, Bricken and Evans dissenting. CA 50 REQUEST FOR FUNDS The request by the f # PROPOSED CULTURAL CENTER Public Information APPROVED Officer, Frank d Blaszcak, for authorization of $1 , 400 for transportation, travel and lodging for Council (Councilman Brandt) , Staff (Frank Blaszcak) , and Citizen (Robert Blaustone) representatives to travel to the Cities of San Francisco , San Jose, Concord, . Tucson, Phoenix and Scottsdale to explore possible financing for Santa Ana Cultural Center, was approved on the motion of Councilman Evans , seconded by Councilman Ward and carried I (6 : 1) with Councilman Yamamoto dissenting. CA 5 2.8a t II MID-YEAR BUDGET REVISIONS Twelve mid-year APPROVED budget revisions , itemized by Jed Christensen, Budget and Management Analyst , in his report of January 29 , 1976, • were approved on the motion of Councilman Ward, seconded by • Councilman Evans and carried (7 : 0) unanimously. Councilman Evans wished to register his disapproval of Item # 7 on page 2 , and the following Contingency items on page 3 : Membership in Fair Housing Council , Financial Consultant for Housing Authority, and payment to Dr. Fielding, Transportation Con- k sultant . CA 65B APPROPRIATION ADJUSTMENT #98 Appropriation Adjust- FIRE DEPARTMENT FILM ment #98 to establish APPROVED an account for the production of the . *„ Fire Department film was approved on the motion of Council- I A man Evans , seconded by Councilman Brandt and carried (7 : 0) clE unanimously. CA 65. 3 ORAL STATUS REPORT City Manager Bruce AMENDMENT TO REFUSE CONTRACT Spragg distributed RECEIVED to Council a chart . indicating amounts paid to the refuse contractor, Great Western Reclamation , -.J Inc., since 1963 with projections to 1978 , specifying the • amounts and percentages of increase each year for CPI adjust- • ments as well as Special Labor Rate adjustments , along with the statement that Mr. Blackman will submit an audit report, all received by Council on the motion of Councilman Ortiz , seconded by Councilman Evans and carried (7 : 0) unanimously. CA 11. 4 A- 6- 21- 71 • ' CITY COUNCIL MINUTES 56 FEBRUARY 2 , 1976 a ae • `,$ . CITY SANTAANA i 7 '; CITY MANAGER'S OFFICE 20 CIVIC CENjjTER PFAZ��}` "N-S,e, IA eq� l -.©.: g.IA 92701 1 January 22 , 1976 1 ` _ FLORENCE I. 1NA60..s. t�MO TO: City Council J, s i 0 FROPI., City Manager i �L ERK OF THF COUNCIL SUBJECT: L UPDATE ON STATUS OF TRASH CONTACT Since the Council 's action in reviewing the staff' s proposal regarding the proposed amendments on the refuse contract last Monday, January 19 , I have reviewed this situation with several Councilmen and with Mr. Tom Blackman, Jr. in an attempt to ascertain the contractor' s response to the City 's position and to narrow as much as possible any remaining un- resolved issues. Mr. Blackman , Jr. assured me that he could speak for his father and the company in negotiating the agreement with the City. 1 I feel that significant progress has been made in these discussions and wish to keep the Council informed prior to your meeting next Monday, January 26, to consider this matter again at 5 p.m. Enclosed is a copy of our staff report dated January 16 with my notations regarding the Council ' s vote on each of our 10 recommendations , and in the following report concerning my discussions with Mr. Blackman, I am referring to these recommendations by their number as shown on the staff report of January 16. 1. OK - Mr. Blackman is not opposing this recommendation and cautions that he does not feel that any legal revision of our current agree- ment should delay the proposed agreement and wants assurance that there will be no substantive changes. 2. OK - Mr. Blackman is in agreement. 3 . Mr. Blackman stated that his major equity problem is with small commercial units who have only one water meter. His countersuggestion was that we utilize electrical meters, but he also stated that this item was not that important to him and that he felt it could be nego- tiated with the City staff , Both of us• were in agreement to drop the proposed population as a basis. I concur with this suggestion because of some of the problems that Mr. Brandt pointed out in estimating the additional population which would live in multiple family dwellings that utilized bin rates. 4. OK - This is satisfactory with Mr. Blackman. 5. OK -- This is what Mr. Blackman suggested, but he also wishes to re- quest that the annual CPI adjustment be made as current as possible City Council Page 2 and not result in an excessive delay. In other words, we should use the most currently available CPI data when we Make this annual adjust- ment. I will ask our staff to review his suggestion to see if there is any cost impact to the City, and if there is any significant one, this should probably also be taken into consideration in our nego- tiations. 6 & 7. These were discussed simultaneously, and there was considerable contro- versy. Mr. Blackman ' s initial suggestion was that he wanted to drop all consideration of the commercial bin rates at the present time because he felt that a discussion of this matter would confuse his request for a residential supplemental rate increase . My initial counterresponse was that I felt the entire matter of providing any additional rate increases, both for commercial and residential, should be settled simultaneously in this contract revision and that I did not believe that the City would wish to continue to grant additional commerical rate increases after the contract had been revised. There- fore, my counterposition , initially, is that if they do not get approval for a commercial rate increase in this revision of the contract, the Council would not consider increases for commercial rates in the future. During further extended discussion of these two items, the contractor submitted the attached labor cost data which he has accumulated since 1971. He indicated that he is willing to verify the accuracy of this data through a certified audit, and his main point in submitting it was that the staff' s insistence for a complete certified audit is not necessary since even this partial audit will reveal that this portion of his costs have exceeded all of the increases granted by the City to date (includes both the automatic CPI adjustments and the supple- mental increases) . This is an interesting point and I think a signifi- cant turning point in our negotiations. I have indicated to Mr. Blackman that our staff will review the data which he has submitted and will ask for further verification and a previous audit which he indicated was performed in a similar fashion for the City in 1971 . In addition, I have requested him to update this data since it was presented on a calendar year basis and, hopefully, we can now get the data needed for calendar year 1975 to make this current. Any conclusions which we may reach upon further analysis of this data could affect our major recommendations both on commercial rates, supplemental residential rate payments, and extension of the contract. I am meeting with our Finance Director and our BAMA Team Analyst later this afternoon and hope that we can make further progress in this cost analysis before Council 's meeting on Monday afternoon. 8. Mr. Blackman advised that he had accounted for a discontinuance of the refund payments betweerf his first rate increase and the November increase (in his original letter he requested an immediate 304 per water meter increase, and in the November letter, this was subsequently reduced to 154 per water meter retroactive to November 1, 1975) . How- ever, we did agree on the approximate value of these refund payments • { • City Council Page 3 as shown in the staff report of January 16 (page 4) . Furthermore, we are both in agreement that it would be well to eliminate these refund payments entirely, since they are counterproductive to the cost analysis which, we are now involved in, and merely increase the contractor' s costs and require him to ask for this reimbursement back again from the City. S. We both agreed that any further discussion of item 9 (request for supplemental payment) would depend upon our conclusions upon further analysis of the cost data which he has submitted and the supplemental data which he has agreed to provide. 10. We are both in agreement that longer terms for the refuse contract will provide more stability and be beneficial both to the contractor and the City. Mr.. Blackman stated that failure to extend the current contract which expires in two years would cause him to retrench in his capital replacement program for equipment and would adversely affect his long-range planning for the recycling program. In response to my question about whether his firm would rebid in the event the City did not extend the current contract, he answered that he thought they probably would give this favorable consideration . I am furnishing a copy of this memo to Mr. Blackman also for his informa- tion and have agreed to meet with him again before the Council meeting if we both feel further discussion would be worthwhile at this time. Respectfully submitted, City Manager ms Enclosures • cc: City Attorney . Director of Public Works Management Analyst Clerk of the Council - Tom Blackman 4 The position of Water Foreman for the Public Works Depart- ment was NOT EXEMPTED when Councilman Br'cken' s motion , seconded by Councilman Evans , not to exempt the position, carried (6 : 1) with Mayor Garthe dissenting. The position of Police Officer for the Police Department was EXEMPTED on the motion of Councilman Evans , seconded by Councilman Ward and carried (7 : 0) unanimously. Eleven positions as Firefighter II for the Fire Department were EXEMPTED on the motion of Councilman Bricken , seconded by Councilman Yamamoto and carried (7: 0) unanimously. Two positions as Fire Inspector for the Fire Department were EXEMPTED on the motion of Councilman Bricken, seconded by Councilman Yamamoto and carried (6 : 1) with Councilman Ortiz dissenting. On the motion of Councilman Brandt, seconded by Councilman Evans , five positions as Police Officer for the Police Department, not recommended by the City Manager for exemp- tion, were EXEMPTED when the motion carried (4: 3) with Councilmen Ward, Ortiz and Mayou Garthe dissenting. - On the motion of Councilman Bricken, seconded by Councilman Ward, and carried (7 : 0) unanimously, non-exemption for the following positions was ratified: 1 Museum Exhibit Specialist 3 Library Page 1 Custodian II 1 Grounds Maintenance Man 6 Firefighter I CA 65B 1 Water Plant Operator CA 50 NEGOTIATION OF AMENDED After discussion of the REFUSE CI.. `f City Manger' s report AMENDMENTS APPR0 ED dated January 16 , 1976 concerning amendments to the refuse contract , the following action was taken: The City Attorney was authorized to REDRAFT the contract to incorporate all prior and proposed amendments and to update the format for clarity, all non-substantive changes , on the motion of Councilman Bricken, seconded by Councilman Evans and carried (6 : 1) with Councilman Ward dissenting. The amendment to remove the weight limitation for single- family residences was APPROVED on the motion of Councilman Bricken, seconded by Councilman Evans and carried (7 : 0) unanimously. The motion by Councilman Bricken, seconded by Councilman Ward to approve in principle a change in the basis for the con- tractor' s payments from water meters to population was APPROVED when the motion carried on a 4 : 3 vote with Council- men Brandt, Evans and Ortiz dissenting. The motion instructed the City Manager to provide Council with a methodology study to support his proposal. The recommendation to allow one hour earlier collection start on a trial basis was APPROVED on the motion of Councilman Evans , seconded by Councilman Ward and carried (6 : 1) with Councilman Brandt dissenting. CITY COUNCIL MINUTES 36 JANUARY 19 , 1976 The recommendation to reduce the semi-annual CPI adjustment to once per year was APPROVED on the motion of Councilman Ward, seconded by Councilman Bricken and carried (7 : 0) unani- mously. The recommendation to deny the contractor' s request for an annual automatic increase in commercial bin rates adjusted by CPI was APPROVED on the motion of Councilman Bricken, seconded by Mayor Garthe and carried (7 : 0) unanimously. The recommendation to restrict all commercial bin rate increases to a maximum of one per year, require contractor to provide an annual statement to justify all requested increases and to secure separate Council approval was APPROVED in principle on the motion of Councilman Ward, seconded by Councilman Yamamoto and carried (7 : 0) unanimously. The recommendation to delete the contractor' s required "refund" payments to the City was APPROVED on the motion of Councilman Bricken, seconded by Councilman Evans and carried (7: 0) unanimously. The recommendation to allow one -"supplemental" payment, upon contractor' s request , per year after October 31 , 1977 , accom- panied by an annual statement and submitted for approval of Council at a public hearing, in order to maintain a fair profit return for the contractor , was APPROVED in principle on the motion of Councilman Ward, seconded by Mayor Garthe and carried (7: 0) unanimously. The recommendation to extend the current contract to October 31 , 1981 and provide that Council may review it for an addi- tional five year period in October, 1979 , after a public hearing, was NOT APPROVED in principle when Councilman Bricken' s motion, seconded by Councilman Yamamoto failed on a (3: 4) vote .with Councilmen Brandt , Evans , Garthe and Ortiz dissenting. Further discussion of the refuse contract amendments and comments from the contractor were scheduled for an Adjourned Regular meeting on Monday, January 26 1976, at 5: 00 P.M. in Room 831 , City Hall, on the motion of Councilman Ortiz, seconded by Councilman Ward .and unanimously (7 : 0) carried. A- 6- 21- 71 RECESS At 6 : 19 P.M. Mayor Garthe recessed the meeting for dinner ; the meeting was re- convened at 7 : 35 P.M. with the same Councilmen present. INVOCATION The Pledge of Alle- PLEDGE OF ALLEGIANCE giance to the Flag led by Boy Scout Troop #28 , Daniel Oldawage , Leader , was followed by the Invocation given by CA 9 . 10 Councilman Bricken.. CA 80. 17 PROCLAMATION PRESENTATION Mayor Garthe pre- "FESTIVAL OF LEARNING DAYS" sented to Mrs . Susan Brenner , a Proclamation entitled "Festival of • Learning Days" to commend her Festival to be held January 24 , CITY COUNCIL MINUTES 37 JANUARY 19 , 1976 .11 14 it REQUEST FOR COUNCIL ACTION PREPARED BY Bruce C. Spragg, City Manager DATE OF COUNCIL ACTION f/yfr'4! DATE 1-16-76 PHONE 834-4131 SUBJECT REFUSE CONTRACT /o/ ern e • ' e '' ..2_61„, /076 APPROVED (19471?-./_••17, - 6j44,1-te DEPARTMENT HEAD CITY MANAGER CLERK OF THE COUNCIL RECOMMENDED ACTION That Council: 1) Review these proposed amendments to the refuse contract; - 2) Approve "in principle" those amendments which receive majority Council support; and 3) Direct staff to negotiate with the contractor on those approved amend- ments and A. If there are no additional changes, prepare an amended refuse contract for Council ' s approval; or B. If there are additional changes proposed by the contractor, prepare staff recommendations on same and return to Council for further guidance. BACKGROUND: At Council' s last meeting, staff was directed to consider amending the refuse contract and recommend amendments for Council 's consideration beforenegotiating the amendments with the contractor. Our response has been directed both to the seven amendments requested by the contractor in his letter dated November 25, 1975, and to propose additional amendments deemed desirable by staff. The City Attorney has advised that Council 's review cannot be accomplished in executive session, and to expedite that review, a summary of all recommended amendments ha: been prepared and the amendments have been arranged in (what hopefully will be) the least controversial and least time-consuming order. SUMMARY OF RECOMMENDED AMENDMENTS: 1. Approve a non-substantive legal revision of contract. ✓ Zia Yi 2 . Remove weight limitation for single-family residences . 3 . Change basis of contractor's payments from water meters' to population. zF--- -- 4. Allow one hour earlier collection start on trial basis. `. 5. Reduce the semi-annual CPI adjustment to once per year rz-.t: ''‘/ 471'" (7t) 6. Deny the contractor ' s request for an annual automatic increase in commercial bin rates adjusted by CPI . z- � 2c1 7 . Restrict all commercial bin rate increases to a maximum of one per year, require contractor to provide [justification at a public hearin47 for all requested increases in commercial bin rates, and secu$e separate Council approval of same . TIO t -6) cy. U m n 1776--0) p Trash Contract P Page 2 f . ! J ,- z-&* ) 8 . palate the contractor's required "refund" payments to City. 9 . Allow one "supplemental" payment upon contractor' s requesst per year after October 31, 1977, after a public hearin. .- . it co cludes upon just- ification provided by anaudit o e contractor' s revenues an. expenses that a "supplemental" payment is needed in adds ion to the annual:CPY adjust; ment to maintain a fair profit return for contractor. -e h" ; .fE Ge& _� - ( -ice ----2..c-r, 1n) aL.c t rnx-.✓ ZL ca- 1 Extend the current contract to October 31, 1981 and provide that Council may review it for an additional five year period in October, 1979 after a , public hearing. fin- , Peade") /3-1.i., e-° i., - l3-cf} t rhe;. eel Cl-, STAFF COMMENTARY ON RECOMMENDED AMENDMENTS: C %� -d'9z-/-a61i 5y : eh/ - 66/66/4-4.- tt2 - "O 1. The City Attorney desires to redraft the contract to incorporate all prior and proposed amendments and to update the format for clarity; none of these revisions would be substantive. 2 . The contractor has proposed removal of the existing 200 pound weight limit- ation on refuse from each single-family residence, and thus to permit weekly disposal of an unlimited amount of refuse in proper containers . This will be a convenience for the public -and a minimal additional burden for the contractor since most instances of slight overweight violation now are not enforced. Frequent gross abuses of an unlimited amount of residential re- fuse are not anticipated with this change. 3 . The water meter was used originally in the contract as a basis of paying the contractor because it was felt this measurable unit was reflective of the amount of service provided by the contractor; i.e. , the amount of residential refuse he removed. Although this work unit is obviously directly related to the volume of refuse (i.e. , the more water meters increase , the more refuse will result) it is not a perfect workload indicator, and does have some defects . For example, in some small multi-family residences , one water meter may serve the entire complex. Staff ' s recent review of other cities ' refuse contracts indicates that electric meters are also used as workload indicators . Since people generate most residential refuse - largely through the in- creased use of packaged food products and other domestic expendables - and since studies have indicated an average per capita residential refuse gener- ation of 1,100 pounds/year, population would suggest itself as a more equit- able workload indicator for purposes of payment calculation than either water meters or electric meters . The annual population figures furnished by the State or Federal Governments could be utilized to measure growth, and the current payment of $1.75 monthly per water meter would equate to our 171,300 estimated City population at $0.404/capita/month. 4. The contractor has requested a one-hour earlier starting time, from 6 a.m. to 5 a.m. (there is no change in the 8 p.m. night collecting limitation) . A successful one-month trial period for this advancement in residential collection should be a prerequisite, and provision should be allowed for its revocation for cause at any time . If the number of complaints are significant, then the trial period would be terminated immediately. This decision would be made by the Public Works Director. It is an advantage for the refuse contractor to start at 5 a.m. and arrive at the dump site or transfer station early. The contractor' s trucks can be first in line and save him waiting time and possibly reduce his trucks time traveling in the peak morning rush hours on congested streets . The disadvantage would be to the citizen who wants to put his trash out immediately before pickup in the morning rather than the night before. A second disadvantage would be the noise factor. People may com- plain about being awakened by a refuse truck at 5 a.m. in the morning, but the trial seems warranted based on the contractor' s claim of having improved equipment which operates more quietly. 5. The contractor has requested that the City reduce its semi-annual automatic CPI adjustments in his payments to once per year. This will save the City Trash Contract Page 3 approximately $16,500 annually and should be accepted and, in fairness to the contractor, taken into consideration in reviewing his request for a supplemental rate increase at this time (reference commentary on amendment #9 below) . Few other cities provide for an annual automatic CPI rate adjustment, and none in our surveys provided for such an adjustment on a semi-annual basis . 6. The contractor' s offer to retain his current commercial bin rates at their present level until November 1, 1976 on condition the City provide for an annual automatic CPI adjustment in these rates thereafter is not supported by any justifying data, and should be denied. It has never been demonstrates how valuable the exclusive franchise on commercial collection is to the contractor' s overall business here, and it must be assumed that the monopoly protection afforded by the City contract is a significant asset. Currently, Santa Ana commercial bin rates are above the average. Using a three cubic yard bin as the basis for comparison, since this is the most common size, the seven largest Orange County cities were surveyed as to the cost of having this bin emptied 1 to 6 times per week. The survey is shown below: COMMERCIAL BIN RATES IN ORANGE COUNTY CITIES 3 Cubic Yard Bin Monthly Rental for Collection Frequency of Pickup Per Week 1 2 3 4 5 6 Costa Mesa $15 $20 $25 $30 $35 $40 Anaheim 25 35 Garden Grove (Sanitary District responsible for service) 15 22 30 37 44 51 Buena Park 19 27 35 43 51 59 Orange 21 26 31 37 42 Huntington Beach 22 27 32 37 42 47 Fullerton 22 28 34 40 45 51 Average - excluding Santa Ana 19 25 30 37 42 46 Santa Ana 23 29 35 41 47 53 Percent above average 21% 16% 17% 11% 12% 15% The City of Santa Ana is above the average bin rate in every case. The City of Costa Mesa and the Garden Grove Sanitary District do not regulate the price of commercial bin rates . The rates for Costa Mesa are from Costa Mesa Disposal and the rates for Garden Grove Sanitary District are from Garden Grove Commercial . Both of these agencies license refuse contractors to serve these areas . 7 . The contractor should be required to justify any request for an increase in commercial bin rates. One way to provide an equitable process for a rate increase would be to require the contractor to submit a formal request specifying the desired amount of increase, itemizing the specific reasons therefor, and attaching a certified audit of all his revenues and expenses in providing this service in the prior year, which in his opinion would jus- tify the amount of increase requested. The Council should set a public hear- ing on the increase to be held within 30 days of receipt of his request and direct staff to analyze his request and the justifying audit data. These data should be treated in a confidential manner to protect the contractor 7 Trash Contract Page 4 from competitors who might wish to utilize such data to their advantage in an unfair manner in potential competitive bidding situations in other areas. This confidential treatment is similar to that now required by State law for certain aspects of sales tax data and police information. After the staff report and public hearing, specific Council action on the requested increase should be required. Only one request for increase per year should be considered. 8 . On December 10 , 1973, the contractor (Great Western Reclamation) agreed to pay the City for the right to sell its stock to S.C.A. Services , Inc. These annual "refund" payments represent a continuing expense to the contractor fox which he receives no other benefits. The refunds are paid quarterly and in- crease by approximately $2,000 yearly; in 1975 this refund payment will amount to $33 , 000 . This requirement should be deleted but, in fairness to the City, taken into consideration in reviewing the contractor' s request for a supplemental rate increase at this time (reference commentary on amend- ment #9 ,below) . 9. The original purpose of the CPI adjustment was to provide for inflation, although it seems reasonable to assume now that the current "double digit" rate of inflation was never contemplated when the contract was drafted. Great Western Reclamation, Inc . has requested a supplemental monthly labor payment in addition to the Consumer Price Index rate adjustments . This rate adjustment is being requested because the contractor's labor costs have increased due to settlement of a new union labor contract in May of 1975. The base pay for a refuse truck driver has increased from $3 . 28 to $4. 00 per hour (22%) , in addition to increases in fringe benefits . The contractor is asking for the following supplemental monthly labor payments effective: CUMULATIVE MONTHLY PAYMENT PAYMENT COST TO CITY Retroactive to: November 1, 1975 $ .15 per water meter $ .15 $ 71,280 (11/1/75- 10/31/76) November 1, 1976 .10 per water meter .25 120 ,000 (11/1/76- 10/31/77) November 1, 1977 .10 per water meter .35 169 , 680 (11/1/77- 10/31/78) CUMULATIVE $ .35 per water meter $ .35 $360 , 960 (3 years) If, as has been recommended in the commentary on proposed amendments #5 and #8 above, no supplemental adjustment is allowed this year and a credit is allowed in the reduction of frequency of CPI adjustments and a charge is imposed for elimination of "refund" payments, an extended cost analysis is: CHARGE FOR CREDIT FOR EST. CPI TOTAL GAIN "REFUND" CPI ADJUST. GAIN BY PAYMENT TO BY PERIOD ELIMINATIONS REDUCTIONS CONTRACTOR CONTRACTOR* CONTRACTOR 11/1/75-10/31/76 $34 , 000 $16 ,500 $17,500 $ 47,500 $65, 000 11/1/76-10/31/77 36 ,000 16 ,500 19,500 57 ,600 77,100 11/1/77-10/31/78 38,000 16 ,500 21,500 63 ,000 84, 500 11/1/78-10/31/79 40 ,000 16 ,500 23,500 68 ,600 92,100 11/1/79-10/31/80 42,000 16 ,500 25,500 73 ,400 98,900 11/1/80-10/31/81 44,000 16 ,500 27,500 78 ,300 105, 800 CUMULATIVE NET GAIN BY CONTRACTOR IN 6 YEARS = $523,400 (7%; CP_ *Assuming a constant percentage increase in the next five years equal to the average percentage increase in the CPI of the last five years . These offsetting charges and credits result in a net supplemental gain to th4 contractor that is only a portion of the amounts his supplemental rate in- creases would yield. Any additional supplemental payments to be allowed due to the labor settlement should be justified based upon an audit of all revenues and expenses . [ _ —--— TrashContract Page 5 For budgeting purposes, the proposed net additional total cost to the City each fiscal year would be as follows : ESTIMATED ADDITIONAL FISCAL YEAR - COST TO CITY 11/1/75-6/30/76 $ 43 ,300 7/1/76-6/30/77 73 , 000 7/1/77-6/30/78 82,000 7/1/78-6/30/79 89 ,600 - 7/1/79-6/30/80 96 ,700 7/1/80-6/30/81 103 ,500 7/1/81-10/31/81 35,300 TOTAL $523,400 1 In the Great Western Reclamation, Inc. letter of November 25, 1975 the last paragraph states as follows : Certain confidential records supporting Great Western Reclama- tions proposed rate adjustment are available to the Mayor and City Council for review upon request. It is unclear as to what is meant by the word "certain" as used in the above paragraph. Great Western Reclamation has been informed by the staff that the information needed includes a certified audit report with financial statements showing 1) capital investment of Great Western Reclamation, Inc. ; 2) profit and loss statements; and 3) corporate tax returns for the years 1970-75. This financial information is required before staff can recommend a supple- mental monthly rate increase because the original intent of the CPI adjust- ment was to cover inflation. Furthermore, it would seem that it would be in the best interest of the Mayor and the City Council if these financial records were made available to the City of Santa Ana Finance Department and the Certified Public Accounting firm hired by the City as its auditor to review the financial data. This financial information would receive the same confidentiality as current sales records of Santa Ana firms . An equitable procedure for a supplemental increase in residential rates similar to that for commercial bin rates could be established (reference commentary on amendment #6 above) . 10. The contractor has requested a two year extension of the currentcontract from October 31 , 1978 to October 31 , 1980. It is understandable that the contractor desires a longer contract period over which to amortize his equipment (IRS apparently requires a minimum of 5 years for tax purposes) , and in which to plan more capital expenditures for equipment and plant. A modern trash compactor truck costs approximately $45, 000, and it requires approximately 18 of these to service Santa Ana 's residential population. The staff' s report of December 31 , 1975 regarding the request for extension of contract period by refuse collection contractor, Great Western Reclam- ation, Inc. contains the following rationale as to why the contract should be extended. The low level of customer complaints and a general appraisal of the con- tractor' s performance indicate that the quality of service performed by the contractor is high. Great Western Reclamation has provided this service since 1963 and has performed exceptionally well even during two periods of labor crisis and one of serious fuel shortage. We have compared Santa Ana 's costs and complaints with the seven largest cities in Orange County. There is an average cost to the single-family residence of $1. 77 per month compared to Santa Ana ' s cost of $2. 00 per month. Complaint levels run from 28 - 66 per month compared to Santa Ana' s of 70 - 90 per month. On a per capita cost basis, the average is $0.49 per month and Santa Ana' s is $0.40 . Trash Contract Page 6 Council ' s refusal to extend the current contract beyond its existing two year expiration date would probably tend to lessen the chances of substan- tial capital investment in upgrading equipment or plant which could not be amortized or salvaged (sold at a reasonable price as used equipment or transferred to another job site) . The result could be to prolong the use of worn-out or unsafe equipment which would reduce efficiency and not serve the public interest well. On the other hand, an overly long contract ex- tension could induce complacency and reduce the incentives for seeking increased productivity. Based upon the lengths of contracts observed in other cities, a moderate length would be approximately five years. If an option for an additional five year extension (from October 31, 1981) were available in October, 1979 an adequate period would be available to imple- ment and evaluate these amendements and still provide ample "lead time" to prepare for rebidding to become effective in 1981 should the option not be granted. In addition, in the event that the City believes the contractor has failed to perform in a satisfactory manner for any reason, it shall after 10 days written notice and a public hearing and the declaration of a health emer- gency, permit the City to utilize the contractor's equipment to abate the emergency. Any additional City costs for this abatement would be deducted from the contractor' s payments . Respectfully submitted, AI B uce C. Sprat City Manager ms cc: Director of Public Works City Attorney Finance Director Tom Blackman RECONSIDERATION OF UTILITY The letter dated USERS ' TAX MAXIMUM November 26 , 1975 , from H. Rhoads Martin, Jr. , requesting recon- sideration of establishing a maximum payment for utility users ' i tax was referred to Staff for investigation and report on the motion of Councilman Evans , seconded by Councilman Ward and carried (6- 0) unanimously. H. Rhoads Martin, Jr. orally re- quested that a target date of January be set for a Staff status report of revenues acquired during the first two months ' oper- ation and potential revenue estimates . The City Manager stated that the Staff report would be available for the second meeting t in January, January 19 , 1976 . CA 65B I RECONSIDERATION OF DENIAL OF The request of Dennie I TAXICAB DRIVER' S PERMIT - M. Sternin to recon- • a DENNIE M. STERNIN sider the November 17 E denial by Council of E his taxicab driver's permit was denied on the motion of Council- man Yamamoto , seconded by Councilman Brandt and carried (6-0) . r Mr. Sternin appeared before the Council to explain that he mis- F understood the question on the application regarding previous traffic violations ; that he had become a very good driver since Ihe had attended traffic school ; and that he needed the job very badly. li II/ Police Chief Davis reported that Mr. Sternin had been convicted / of six moving violations within 17 months of his application and F could not be issued a taxi driver' s permit under Municipal Code F . Section 38-22 (6) . CA 26 . 3 CA i '']-.7.,.. ]sAMENDED REFUSE COLLECTION SERVICE The letter dated CONTRACT - GREAT WESTERN RECLAMA- TION, November 25 , 1975 , INC. from Thomas L . Blackman, President of Great iWestern Reclamation, requesting certain amendments to the Refuse E Collection Service Contract, was referred to Staff for investiga- [ tion and report, including a recommendation for an accounting I process , on the motion of Councilman Ward, seconded by Council- 'c ''"man Evans and carried (6-0) unanimously. CA 11 . 1 t I CHARTER REVISION COMMITTEE The Mayor was auth orized to appoint a Charter Revision Com- mittee made up of nine Santa Ana citizens subject to approval of the Council on the motion of Councilman Evans , seconded by Councilman Brandt and . carried (6-0) . Although specific subjects for review contained 'a } in the December 1 , 1975 memorandum from the Council to the Mayor, a were discussed, Mayor Garthe recommended that the Committee take a look at the whole Charter and that proposed amendments a be submitted to the electorate at the November , 1976 GeneralCA129 ) Election. i ACQUISITION OF 24 ACRES FOR The recommendation of CENTENNIAL PARK the Planning Commission If taken December 1 , 1975 , to find the acquisition of 24 acres of federally owned property for the development of Centennial Park to be in conformance to the adopted ,General Plan 'i iE CITY COUNCIL MINUTES SO4 DECEMBER 8 , 1975 eie.s.vitAD ' !A411044447m' ' 4, ,OPAIS,111. -14f404145, 4 0.042.7.-14.11, 9,•21 7 _ C 4'1\ t 'e'40'4 •4, 41,1 `i1/44104;14441 ;IA ki e i:CV ItAg4 Vs.Ap$4,,•1•'t kik 40 fr. 2-'44 ":see er,41 ' 4",•/.04. 4-1-24“4: °,4,14a.50, 17:1c, er. 14.1 4-v`st* 4., LON Si4P 4•Cittsilq AAA: tic'A 'ft; t enttirg .4-k„-`4,2- tett-4-W444, "h•t4-9. ,'44 4 -1" :4/02/4-27t) ,A,P4 Pail.. 014 L ACTION DATE %err-------rrrvct, -VI-IL WOO SO. GRAND • SANTA ANA, CALIF•RN,1511/2-99-706-0-9-1414-5;8-7.74;1 November 25, -1975 City Council 12:1 City of Santa Ana * * .1 Santa Ana, California <tfl4f a ' Florence I. Malone, Clerk of the Council Gentlemen: It is respectfully requested that the Refuse Collection Service Contract between the City of Santa Ana and Great Western Reclamation, Inc. be mended in the following particulars: 1. SECTION 3 (b) of the specifications be attended as follows: Contract shall be for a period of (5) years. It shall beccue effective the first day of November, 1975 and shall terminate the thirty-first day of October, 1980. This agreement will automatically extend itself for an additional one-year period on the thirty-first day of each succeeding October unless otherwise notified in writing by either party to this agreement before the first day of May during each year of this contract. 2. SECTION 4 (a) of the specifications be amended as follows: The following words and figures are added thereto: In addition to the contract unit price, plus any cost of living increase as provided in Section 4 (b) , Compensation Readjustments, the following amounts per active water meter per month shall be added on the dates indicated. November 1, 1975 $0.15 November 1, 1976 .10 November 1, 1977' - - --------- - .10 3. Effective November 1, 1975 drop the requirements wherein Great Western Reclamation, Inc. pays to the City of Santa Ana certain sums of money as provided for in a SUPPLEMENT TO AGREEMENT dated December 10, 1973, listed under "Recitals" C, 3, B. 4. SECTION 4 (b) "ONnpensation Readjustments" shall be made only one (1) time per year, November 1 as follows: On the first day of each November of each succeeding year, the contract unit price shall be adjusted to reflect the percentage change in the Consumrs° Price Index (1957-59 base) Los Angeles Area, published by the U.S. Department of Labor, as indicated by the index figure most recently published prior to the annual adjustment. SOLID VVASTE CONT'ln" tell Sas1 November 25, 1975 City Council Page 2 5. Great Western .Reclamation, Inc. will hold the Commercial. rates fine until November 1, 1976 with the understanding that the rates will then be adjusted to relect the increase in the Consumers' Price Inde! from the time of the last rate adjustment and annually thereafter. 6. SECTION 2 (k) "Maintenance of Schedules" be amended to provide as follows: All collections from residential areas shall be made between the hours of 5:00 a.m. and 8:00 p.m. pending the approval of the Public Wtrrks Director. 7. SECTION 2 (f) "Preparation of Refuse" be amended to provide that the 200 Pound weight limitation be removed at single--family residences. Cettain confidential record supporting Great Western Reclamation's proposed rate adjustment are available to the Mayor and City Council for review upon request. Very truly yours, ti Thomas L. Blackman President 53 December 3, 1975 Mr. Thomas L. Blackman, President Great Western Reclamation 1800 South Grand Santa Ana, California 92705 REFUSE COLLECTION SERVICE CONTRACT AMENDMENT We have received your letter dated November 25, 1975 , requesting specific amendments in the City's contract for refuse collection. The letter will be carried on the afternoon agenda of the City Council meeting to be held on Monday, December 8 , 1975 , in the City Council Chambers , 22 Civic Center Plaza. The meeting commences at 2 : 00 P.M. You are invited to attend and to be heard on the matter if you so desire. Please call me at 834-4906 if I may provide additional informa- tion. Sincerely, FLORENCE I . MALONE CLERK OF THE COUNCIL 53 4 CRY SANTA ANA r CITY MANAGER'S OFFICE • 11111IVlillll 1 20 CIVIC CENTER PLAZA o SANTA ANA • CALIFORNIA 92701 January 22 , 1976 MEMO TO: City Council FROM: City Manager SUBJECT: UPDATE ON STATUS OF TRASH CONTACT Since the Council 's action in reviewing the staff' s proposal regarding the proposed amendments on the refuse contract last Monday, January 19, I have reviewed this situation with several Councilmen and with Mr. Tom Blackman, Jr. in an attempt to ascertain the contractor' s response to the City's position and to narrow as much as possible any remaining un- resolved issues. Mr. Blackman, Jr. assured me that he could speak for his father and the company in negotiating the agreement with the City. I feel that significant progress has been made in these discussions and wish to keep the Council informed prior to your meeting next Monday, January 26 , to consider this matter again at 5 p.m. Enclosed is a copy of our staff report dated January 16 with my notations regarding the Council ' s vote on each of our 10 recommendations , and in the following report concerning my discussions with Mr. Blackman, I am referring to these recommendations by their number as shown on the staff report of January 16 . 1. OK - Mr. Blackman is not opposing this recommendation and cautions that he does not feel that any legal revision of our current agree- ment should delay the proposed agreement and wants assurance that there will be no substantive changes . 2 . OK - Mr. Blackman is in agreement. 3 . Mr. Blackman stated that his major equity .problem is with small commercial units who have only one water meter. His countersuggestion was that we utilize electrical meters, but he also stated that this item was not that important to him and that he felt it could be nego- tiated with the City staff . Both of us were in agreement to drop the proposed population as a basis. I concur with this suggestion because of some of the problems that Mr. Brandt pointed out in estimating the additional population which would live in multiple family dwellings that utilized bin rates . 4. OK - This is satisfactory with Mr. Blackman. 5. OK - This is what Mr. Blackman suggested, but he also wishes to re- quest that the annual CPI adjustment be made as current as possible City Council Page 2 and not result in an excessive delay. In other words, we should use the most currently available CPI data when we make this annual adjust- ment. I will ask our staff to review his suggestion to see if there is any cost impact to the City, and if there is any significant one, this should probably also be taken into consideration in our nego- tiations. 6 & 7 . These were discussed simultaneously, and there was considerable contro- versy. Mr. Blackman' s initial suggestion was that he wanted to drop all consideration of the commercial bin rates at the present time because he felt that a discussion of this matter would confuse his request for a residential supplemental rate increase . My initial counterresponse was that I felt the entire matter of providing any additional rate increases, both for commercial and residential, should be settled simultaneously in this contract revision and that I did not believe that the City would wish to continue to grant additional commerical rate increases after the contract had been revised. There- fore, my counterposition, initially, is that if they do not get approval for a commercial rate increase in this revision of the contract, the Council would not consider increases for commercial rates in the future. During further extended discussion of these two items, the contractor submitted the attached labor cost data which he has accumulated since 1971. He indicated that he is willing to verify the accuracy of this data through a certified audit, and his main point in submitting it was that the staff' s insistence for a complete certified audit is not necessary since even this partial audit will reveal that this portion of his costs have exceeded all of the increases granted by the City to date (includes both the automatic CPI adjustments and the supple- mental increases) . This is an interesting point and I think a signifi- cant turning point in our negotiations . I have indicated to Mr. Blackman that our staff will review the data which he has submitted and will ask for further verification and a previous audit which he indicated was performed in a similar fashion for the City in 1971 . In addition, I have requested him to update this data since it was presented on a calendar year basis and, hopefully, we can now get the data needed for calendar year 1975 to make this current. Any conclusions which we may reach upon further analysis of this data could affect our major recommendations both on commercial rates, supplemental residential rate payments, and extension of the contract. I am meeting with our Finance Director and our SAMA Team Analyst later this afternoon and hope that we can make further progress in this cost analysis before Council 's meeting on Monday afternoon. 8 . Mr. Blackman advised that he had accounted for a discontinuance of the refund payments between his first rate increase and the November increase (in his original letter he requested an immediate 300 per water meter increase, and in the November letter, this was subsequently reduced to 150 per water meter retroactive to November 1, 1975) . How- ever, we did agree on the approximate value of these refund payments • City Council Page 3 as shown in the staff report of January 16 (page 4) . Furthermore, we are both in agreement that it would be well to eliminate these refund payments entirely, since they are counterproductive to the- cost analysis whichwe are now involved in, and merely increase the contractor' s costs and require him to ask for this reimbursement back again from the City. 9. We both agreed that any further discussion of item 9 (request for supplemental payment) would depend upon our conclusions upon further analysis of the cost data which he has submitted and the supplemental data which he has agreed to provide. 10. We are both in agreement that longer terms for the refuse contract will provide more stability and be beneficial both to the contractor and the City. Mr. Blackman stated that failure to extend the current contract which expires in two years would cause him to retrench in his capital replacement program for equipment and would adversely affect his long-range planning for the recycling program. In response to my question about whether his firm would rebid in the event the City did not extend the current contract, he answered that he thought they probably would give this favorable consideration . I am furnishing a copy of this memo to Mr. Blackman also for his informa- tion and have agreed to meet with him again before the Council meeting if we both feel further discussion would be worthwhile at this time. Respectfully submitted, 9 - City ManagNOI ms • Enclosures cc: City Attorney Director of Public Works Management Analyst Clerk of the Council Tom Blackman gfrt MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA January 5 , 1976 The Adjourned Regular Meeting of the City Council was called to order at 12 :15 P.M. , by Mayor John Garthe, in Room 831 , City Hall , 20 Civic Center Plaza. Proper Notice and Posting of the meeting had been given, with affidavits on file in the office of the Clerk of the Council . Following the Pledge of Allegiance to the Flag and the Invocation, roll call was answered by Councilman Gordon Bricken, David F. Ortiz , Harry K. Yamamoto , Vernon S. Evans , David L. Brandt , James E. Ward and Mayor John Garthe . The following staff members were present : City Manager Bruce C. Spragg, City Attorney Keith Cow, Director of Public Works Ronald Wolford and Clerk of the Council Florence I. Malone . Tom Blackman, Jr . , representing Great Western Reclamation, and Lynn O'Dell of "The Register" were also present. LOWELL MINI NATURE PARK Council approved SIGN DESIGN the sign design for APPROVED Lowell Mini Nature Park Which was exhibited by Ron Ono , Recreation and Park Department, on motion of Councilman Evans , seconded by Councilman Brandt, and carried with Councilman Ward dissenting. CA 52 REFUSE COLLECTION CONTRACT Staff was authorized GREAT WESTERN RECLAMATION to enter into negotia- REFERRED tions with Great Western Reclamation to amend its present contract for refuse collection, and return the negotiated contract for Council review prior to setting a public hearing on the matter, on the unanimously approved motion of Councilman Yamamoto , seconded by Council- man Bricken. Prior to the motion, Council considered and discussed the staff report dated December 31 , 1975 dealing with the 'Great Western Reclamation request for a two-year extension of its present contract. CA 11 . 4 A-6-21-71 EXECUTIVE SESSION Council recessed at NO ACTION 1 : 25 P.M. , for an Executive Session regarding personnel matters , on the unanimously approved motion of Councilman Bricken, seconded by Councilman Evans . ADJOURNMENT At 1 : 55 P.M. Council ' reconvened with the • same members present , and immediately adjourned. FLORENCE I . MALONE CLERK OF THE COUNCIL CITY COUNCIL MINUTES 1 JANUARY 5 , 1976 CITY OF SANTA ANA J .°°° CITY MANAGER'S OFFICE * '554 1. 20 CIVIC CENTER PLAZA • SANTA ANA ® CALIFORNIA 92701 t (r t h . December 31, 1975 MEMO TO: City Council FROM: City Manager SUBJECT: EXTENSION OF REFUSE COLLECTION CONTRACT Enclosed for your information is a staff report recommending that the present contract with Great Western Reclamation be extended for several additional years . I am in agreement with this recommendation and wanted to have it in your hands as soon as possible prior to the Council 's meeting on Monday at noon to discuss it. I am also having a copy of the report delivered to the Blackmans and to the press so that it will be totally available and a matter of public information. From a timing standpoint, if the Council concurs with the staff' s recommendations that the contract be extended, the public hearing regarding this proposal could be held, if Council desired, at your next regular meeting on January 19 in the evening. Staff would then begin immediately to negotiate for the amendments to the existing contract. I believe that the staff 's negotiating amend- ments could be drafted and available for Council consideration by the 19th so that, hopefully, an amended contract would be ready for Council' s consideration by the second meeting in February. I will attend the special meeting of the Council at noon on Monday, January 5, although I am still formally on vacation and will not attend the regular meeting on that date commencing at 2: 00 o 'clock, and will also have Mr. Wolford and Mr. Yata available to explain the survey results that are attached to the enclosed report and to answer any questions Council may have. Respectfully submitted, III-Bruce C. Spragg ms Attachments VIIIIWIhIh F REQUEST FOR COUNCIL ACTION PREPARED BY Ronald Wolford and Dennis Yata DATE OF COUNCIL ACTION DATE December 31 , 1975 PHONE 4931 SUBJECT REQUEST FOR EXTENSION OF CONTRACT PERIOD BY REFUSE COLLECTION CONTRACTOR, GREAT WESTERN RECLAMATION INC. APPROVED 14GC OI,.dw�a,.,1.( �J Qd DEPARTMENTREAD CITY AG CLERK OF THE COUNCIL RECOMMENDED ACTION It is recommended that the City Council announce its intention to extend the present refuse collection contract from October 31 , 1978 through October 31 , 1980 and set a public hearing to allow public participation on this matter. CONCLUSION The low level of customer complaints and a general appraisal of the contractor's performance indicate that the quality of service performed by the contractor is high. Great Western Reclamation has provided this service since 1963 and has performed exceptionally well even during two periods of labor crisis and one of serious fuel shortage. We have compared Santa Ana's costs and complaints with eight other cities in Southern California (see Exhibit B). Reducing the three cities ' cost who pick up twice weekly to a once weekly equivialent we get an average cost to the single family residence of $2.99 per month compared to Santa Ana's cost of $2.00 per month. Complaint levels run from 203 - 485 per month compared to Santa Ana's of 70 - 90 per month. These other cities collect with their own forces and Santa Ana's experience indicates that cost and quality of service can be maintained at acceptable levels through use of a private contractor. The most serious concern with extending the contract is the matter of determining an equitable rate of compensation. The contractor has requested an increase in the contract price beyond that provided in the contract by the U. S. Consumer Price Index. Their request is based on the wage settlement resulting from the strike of May 1975. Three methods of determining a fair price to be paid the contractor by the City are as follows: a . Rebid the contract allowing competition in the market place to establish an equitable price. The prevailing practice in California is to stay with one contractor for extended time periods. b. Contractor opens his financial records to the City so that determinations can be made through the auditing process of reasonable rates of return on in- vestment and reasonable profit levels. c. Compare the contractor' s price with those of other contractors serving municipalities in this vicinity. This is probably the least desirable method because the operations vary considerably from city to city. Such factors are population density, general design of the street system, distance from transfer stations , distance from disposal sites, etc. 0tuTIO (0) e l s_ g96 If the contract is to be extended there should be a number of changes made in the present contract. These would include a changeover from the water meter to some other basic measure of payment to the contractor, the possibility of the contractor providing direct billing to the customers, changes in determination of commercial bin rental rates , the disclosure of financial records and possibly other considerations some of which the contractor has also requested. BACKGROUND The contractor, Great Western Reclamation Inc. sent a letter to the City Council dated November 25, 1975 covering seven specific points. This report responds specifically to only his first request which was for the extention of the contract period. The other six requests should be dealt with at a latter time following Council determination of whether the contract period is to be extended or not. The present contractor was low bidder and was awarded the contract beginning November 1 , 1963 and running for a period of seven years. Subsequent extensions of the contract by City Council provide now for an expiration date of October 31 , 1978 or a total contract period of 15 years. QUALITY OF SERVICE For quality of service we would have to give a high mark to the contractor, Great Western Reclamation, which is now owned by SCA Services. The number of service requests received from citizens during the 1974-75 fiscal year amounted to 1 ,042. This averages to 97 per month or 22 per week. Considering that over 50,000 refuse collection stops are serviced each week and that a strike occurred in May 1975, we feel that this is an extraordinary record. Very few of these requests can be considered as actual complaints. Some of them are misses and the company promptly follows up with a supervisor in a pick-up truck to take care of the missed collection on the same day that the call is received. Some are when the homeowner puts out his refuse after the crews have already been through the area. This fiscal year through November 1975 only 362 service requests were received. This amounts to 72 per month or 17 per week. The quality of service has been consistently high since the initial break-in period in late 1963 and early 1964. Our complaint level is well below that of other large cities in Southern California as shown earlier and compares not too unfavorably with the seven larger Orange County cities. Their average range is 28 - 66 monthly and Santa Ana' s runs 70 - 90. BIDDING EXPERIENCE IN OTHER CITIES A number of organizations were contacted to gather information regarding the experience of other cities that have rebid their refuse contract in recent years . These organiza- tions were The League of California Cities, Southern California Association of Governments, The Solid Waste Refuse News and Great Western Reclamation. We were interested in finding out what had happened to quality of service and price of refuse collection after rebidding as compared to these same factors before rebidding. Other cities' experience in bidding refuse collection contracts is very sparse. For example, in Orange County Fullerton is the only city that has recently bid their contract. This occurred in 1969. Prior to that Santa Ana bid in 1963. Other cities in Orange County range from 1955 to 1962. These data are shown on Exhibit A. In April 1974, Arcadia rebid their contract because the prior contractor went bankrupt. The new rate for single family residential service, once a week pickup, is $2.50 per month. The former rate was $2.50 per month. They received ten competitive proposals and the quality of service is considered very good. The contract provides that the City may audit financial records and rate adjustments are based upon contractor's proof through such records that he is entitled to a rate increase. Billing is handled by the contractor. The residential pickup is exclusive to the contractor but not the commercial . Arcadia's present population is 46,000. 2 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 If valid comparisons are to be made between public and private enterprise methods of refuse collections some equitable basis must be established which takes into account all variables involved. Total annual cost to the customer is obviously important but it can be misleading unless the level of service is also considered. Differences in collection frequencies, points of collection, sanitation appearance standards and classes of refuse included must be accurately evaluated. All expenses must be included. Municipal accounting procedures sometimes fail to charge overhead costs such as office space, management salaries , fringe benefits and assistance from other staff departments such as attorney, personnel and finance. Some do not include interest on invested capital and equipment depreciation. It is therefore very difficult to compare costs between agencies who collect their own refuse and those who do it through private enterprise because total costs are generally not included in such a way that it can be readily extracted from the agency's budget. Many smaller refuse collection firms have been acquired by a group of large companies and the annual earnings of the top four are shown in the following tabulation: Revenues in Millions of Dollars Name of Firm 1974 1973 Browning-Ferris Industries $312.1 $264.2 SCA Services 166.2 122.8 Waste Management - 158.4 132.5 Sanitas Services 106.0 99.1 In some ways this is an advantage to the solid waste field because the larger firms are well financed. They can afford to do their own research and development and bring in new professionalism and innovative management to this field from the private sector. Our present contractor, Great Western Reclamation, is a subsidiary of SCA Services headquartered in Boston. Americans annually spend about $4.5 billion on disposal of solid waste. As the population of this country continues to increase so also will the quantities of solid waste material to be disposed of continue to increase. The time is coming when managing solid waste will be though of in terms of mass collection and disposal . No doubt this trend has brought about the large solid waste combines. The collection process represents about 75% of the total cost so this phase of the solid waste disposal cycle exceeds $3 billion annually in the U.S. -A) X42€60 �— at:c� P Ronald E. Wolford V Dennis Yata Director of Public Works Management Ana st Attachments: Exhibits A, B, C and D 4 44 0 0 V) G 4J O 4-4 0 +-I o 4J 4J 4J o 4J 44 4J CO (d 4) N 4) v) 4J V) 4J In U) 4) U) U In a (d td cd td en 0 d M cd C0 C In a u) a � a t') a t- a en atm $. r-1 O 0 t' l`• I- n \ n \ 4-4 44 •ri 4.4 - \ . \ \ N \ • N O C •• U) N t' • r-. - t - t\ - v-4 - H M 4•4 tr) 0 >, C L" • .O N In 0) to t' .0 N .0 U .-4 0 N- 0) ' C .0 C en C e0 C In C en K C 0) N 4 (71h 0 O t 0 \ 0 O) O \ 0 0) 0 \ 0 C] 0 .-1 b0 44 I') X N 05 r-I .rf N 9-I .--1 •H 1--1 -r♦ c-! •ri N •41 ri •H -1 1 ' V) V) • 40 - U) 0• K 4-) 0 r•-0- vU) N U a 4J C • 4-4 C • 4J C • 4-) C • 4-4 a C 4J a+KC) C 00 K) a 11.)k f4 4- •r4 > 14 0 O £-1 0 0 k 0 0 4-4 0 CO F4 0 co F 0 CO is d) r-- >- >- (-4 k cd V) SA r 4 d d-) W td 4) CO It 4J N d 4-) N d 4 \ d 4 \ d Y \ 1-. 0 4J d p. 0 4-• >< ----. 4-JX ---- 4J X \ 4J X - 4J X N 4J X N 4-1 X 0 O i•. 0 (J) a Q I'O CO 0 I' V) 0 .-1 v) 0 5.0 CO 0 N or) 0 ••e en 0 r44 CO 0 r+ 0 00 `cdX X 0 -) a) td Q .-1 4-1 9-44 N• N 0 X = 0 4-' 0) d $4 44 44 F4 4) •0 P. C X -.4 C Z R. X •4-1• N 1-1 • rr4 {-I 4J N 3 • $-1 • N ed P4.4 - 0) U r4 0 p..-I 0 340 ..I 0 4J 0 0 4-4 .a 4J O C •1-1 . S ed .•4 3 drI d .. 2 0 .0 0 3 W 0 3 0 .O 3: U -0 4-1 cd -H .X Cdd • N 0 >, O O .-I 4J d O 0 O W 0 U O -.4 O 4 0 4-4 d C 44 C 0) 0 ,-1g •.CI E 0 d . J• F 44 d 4-) 4+ 0 .0 .0 U) O C C d 0 44 - • • . .se co I -I 0 -H 4-4 , > F4 cd . en 40 01 V) -• ii 0 - CC QU [L 4.0Z44o44-1 0) Z0 >1 >4 >1 ›. Z4-4-4 .0 O 0 Z N 0 , F 1-.1 1-1 0. - 0. 0 0) 0 0 U U Ik 0 0 0 ) h Z z ZU U U 4 cd cc 0 334 U • en v) en en Z n 0 A. >-. Z Z 0 Z CD 0 0 > • >-. u7 C I C I r 0 4) C C t d) 4-) E 4.4 0 O E Cl V) V) .0- 4) .0 1-1 IT) C at to U) N I 4 4 Oi 444 0 3 0 ) •0 3 0-4 'd +-I F--. 4) U C O O d O O d U d 0 a-I i 4 I I C d I C d b®r"4 C.) .0 04 I I I I X Sw N I X F4 V) 0 a 3 X N I I I a 0 I 0 ua + 4J C 44 C C •.X > O O d O O d N0 0U Z U 3 0 �+ Z U 3 Q Z W 00 N 0 tn H V) b 0 •n O 0. bel $4 0 0 I-I O C °0 '0 C]I • 44 J-4J N -d•4.1 O) 0. X d d -0r= >t C In N 0 t' U 0 U) .-I V) .1 C y E 4-41 0 C71 V) ? 7-4V) r•1 O C C. p. 0 O 0 d) d4...) e-i rI d r-4 d e• II .-•I 4J 1-1 ,,0 tn O .ti C C O C 0 EA >, 0 k >, a 0 -0 C ' 0) CN Y 0 d • - F0. 0 •O CC C C C C 0 C C •r4 ,C CL d X 0Ca C m 0. Q ¢ T . 17 r-I ra - k-^ 3 0 .0 0) E 34 • O 4.) '0 0 U -.4 .01.11 4-1 d d K) N In In 0 0 O 01 In n d k a N a N in in in V cO n c4 4) . . . a-a C 0 N rM t 1 H ••9 N r•ti r-I r4 H 0 •r1 U .-1 - d r-1 .a .-) U) d d d N O H V N V C d p4 d 0 rr O 0 Stl oO •.I 0 V) V) een cn 0 04 at a P. d 44 0 O 4J 04 a p. •r1 O •rl -rI 0 -.i O O 0 en 0 p. 0 0 00 y. ® 40 0 O 0 ix0 44 4J d 0 C 0 C 4 a 0 0 -r4 N d .A C0 d >, d 0 0 U 0 a el., h 0 I- 0 R: b0 C ..4 O 4-) 0 d V) .e 0 0 0 X > 0) • W O el o C7 -.i 1 ed4 Q 0>, • tO C. E .4 1 Pa .4 0 C C7 E'° d •C d 0 0 00 0 4✓ Q d a. U 44 4) C .4 r-. C •C -.I K C CO d 1-. 0 U = MI Q Cl, 0 0 V) Q V) X , 1 ._i.. • U) 4-)..0 C ++ I)) 0 •r. C O 0 N O in O 0 O M r. ri O - 0 •-i 0 .-I g I I I ri I M I 1 al 0 la En 0 Ln E k N 4' M N ON O a) .i C_) P. In } t' E• M >, X 'C I 0X a) ® N b N E gY 0 0 U) i-) ri Y 0 C cd O A 4-4 In U >,r4 G: bO 0 Cl. 4-) O .i a) •ri N - C ¢I Z to k O cd 'Cl P H v2 O cd a) .-I a) k in In P O 0 a) 0 E C Fi rl V P.ri •i a) n CO .-4 .-I In La P.1-4 0 0 Q o a) 00 • 0 ri •ri C - • O cd - 0 ti o Pa g N Fi •ri cd a) ri .-i C •ri ri ri k •ri ri N •ri be- aro P. 00 C& b4•ri U b} le- P..XI-OS bl U) x x x x rX x x x O a) a) a) a) a) o a) >- P.cd 3 3 3 • 3 S S S S 0 ? •rr C .0 +) k k k k k H k F. a) U g a) O a) a) C a) a) a) P •H a) P. P. P. P. as P. PI P. cr C34 'C a) •-I a) a) a) a) a) a) a) a) Fi 44 V) U U U 0 U 0 C0 U O, O 04 O 0 0 0 0 a§ O E 8 F ry .0 0 • >-. 0 o 0 Y E 0 O 0' K N E +• - m cd a a a a a E � h a 0 •rrII4- E C cd 0 -4t-- al C 0 0 0 C e .i k •rr -0 k r-i , ks mF • o J m 0 0 0 0 0 0 0a H 0 CO d ILI 4 O O O 0 Y M O O 0 M 0 0 al O u c0 l!) O .O k •0 W 4' 'C .O 0 0 3.0 N z I—) 4a z 0 o CV HFo U U111 U) CO V) U) HU0 W > d 0 aa0 aa0 0 LN a z >< > > > z - ca at 0. 0 OU k Oo in 4-) CO 0 a)nX k - 03 X ^gO ti 0 N N to C) CO VU ci, U U 'CI a) 0 0 0 a) O a) a) 0 r >4 >4 >4 >- r >- X>• CC o . r-i C P. • 0 I U) }) I Ed•.-1 0 ri ••.Ni .-I r-4 PN. •P. ••-I E O C) .ti O cd 0 3 cd E 0 •r-I 0 0 3 0 E k N CO In O N 0 •.i V) CO O 0 •ri 0 a) U) O •ri U) a) S: k a) a) cd O >, a) .0 O a) a) 0 a) a) G] a) b0 a) 4-) a) 4-) 4C 0 > +, a) > P. r x P, >- x >- >. >• K •r4 >. Cd •H g . 4IC w to w 3 ••I U) 0 N k C7 Cd a) 4-) a) G u o 0 0 •.I C) Cd •riC i Cd I k p. a) H k cd •r. d1L) 000 CLO 6o 0. 0 O• P. C7 O E I H• .-I C 0 to N I r-. N .1-1 P. P. • •.i w 0 O P. 4-) M ,—.1 .-I N 1-4 a)P. 0 rr•i U C •ri S 0 cd •r4 N cd 3 U a) w 0 in O u) N X V) to O U) -.i 0 a) N X V) U) 0 C CO 'O a) a) .O 0 a) 0 0 a) a) 0 a) to a) 0 0 a) +) C 0 •r, >. 0 >• C P. >< O P. >• x r >• cg >- 00 P. >-� C Y U) O rI U) > + CD PC a) G. Cd CC .ri , U1 F cd •ri (I I k at •ri H k cd CC O in a 0 I-) O P. 0 r') 0 CO aD E 0 • 'CO G'. F 0 0 Fx+ C Fi O I-+ n ca 2 a u •ate-+ 0 an >. C •r4 k 0 C Cl •ri H i-) al •ri .0 0 Id 0 b0 a) 4-) kad • +-r x 0k G 0 u) N W d H C F.. •g 0 g W I O raD Q m. s. U` coo CO C.) x r • z cd o i-) N •ri W N 00 O Ct M 00 t0 O E. P to V rN V N) ri O -1 N 00 • Q OV) cC 0) N 40 0 a 0 • N 'e - ra O .-i r-1 4-1 ri - 4--1 a H U c» 40- 40- 40- v} as yr ss g 4 a a) .n o a E"--- a. >. E— it-- cg o C 0 \ o . 0 O a) .riO O O O 0 o O O 0 N I-) 4 9 0 0 0 0 0 0 O 0 0 ti cd c O O O 0 0 O O O 0 o O •H 0 0 U) 00 t0 ti 0 U) M U) .-1 4-2' al t0 00 M M ri 00 N e-i N U) 0 - N) :-i e-1 ri ri N ri W Y W 0. CU 0 0 in N g 00 0 -1--11 0 � 0 0 N 0 N 0 H cd 0' (NI N) t0 N N) 0 0 N 0) r-1 i I I I I In N I I E H N N )fl N. N N V N 0 N. U O 0 ri N ri N U 0. Q . H 2 O y Fi a) a r0 rC x d -.-itad cd m i-) U a) O z 0 0 0 A H 0 O r-1 o O co O O O a) O O W O H S •-) NC) N N O U) a -0 0 O O S E-. 09 H (d N) N N N) N) M Cli k U) N O 0 W y} C09. 'ES 49- 443- H} a Aw 49- 49- 0 9o a rn as z a an cnz 0 • E. U O d X X r.Y a) 0 .Y X .X cd a (-- 0 a) 0 N a) a) a) 0 d O U 3 a) a) 0 3 3 a) a) a) C •rs 3 3 3 \ 3 3 3 W D'0. 0 \. \ \ 0 a) \ \ \ a O gU a) a) O U U a) a) a) ® wo F 6 8 o A E 8 0 z O H N ri fi U •.i E >, >, A >. >. X. X X >. a) W O. i-.) Y 4.3 F) d-). 4.+ i-) 4-3 &) r-7 4-) •r4 .ri .ri .ri •ri -ri .r.1 •rI •ri .-7 O In c.) U U 0 U U U U 0 o 3U U W En +) be E E E E E E E a E E a) 9-4a) ct 03 cd C ed C i-) c6 c0 cc) O • P-, •ri +) E C W r-1 H •.i O 0 0 0 0 0 0 0 0 O 0 0 H cd E-- 0 0 0 0 0 O H O 0 00 m + .. .. 0 W cn t0 N h 00 N 1n r-1 tp !\ t` t0 0 >-. H 2 0 O 0 U >. .- >. >. >. >. >. >. einn •r0.1 d a) 0 C a-) N N N i.) 4.3 i-) N a) i•) E ''H H •A •-1 •.i 9-1 9-1 •.i •.i •H 3 cd CO O a) i-i U U U U U U U U a z x 0 . H U t )"a C's tX s-1 E- C a) z O a-) W .rl CC) 0 4-4U .' 0 ta 0 1a a) H 0 0 0 0 0 0 0 0 a) cn a •.i Z 2 z z 2 Z Z z >- - [0 ri 0 a O >. U .0 0 G . a) U cd 0 cC too at g b a) ..--o°EU 0 C AJ H° CA CC ccdd 1O 0 ca 'cs as U 1-. •r-4 O r�a 0 cdF.F. a.1 ro 0 p0 0 .-7 U E-^ e/) 0 in 0. in H X a) Mcr O a) in t./1 OO A 0O In A 00 0O N • • N 0 4) 00 4) 00 OO .0 Fi to.-I . .r4 • . '0 •ri _ . H a) ‘—i NI 1� 0 0 ri V V U v) M) to C) C V3V3 ri M r-+ r-I 63 .--I N N N _ )h k •rI rsa 43 A dee-v} A 01-i+s is3 vs 1--- Z z O cd ` .n P Y• 0 44 ++ . .X X X X X Ht- - C X a) X 0 "I X a) c) '29 X 0 X CD N F a) O a) a) a) a) a) W a) a) a) a) a) 0 0 6 oa O a) 3 I 0 3 +) aD 3 3 u 0 3 a) 3 N a Fi 3 I 3 ca 3 0 3 3 .-i 614 'V k I Fi ,--I $-1 Fi .--I k k P. ,C Fi F. a) Fi a) O N a) .0 C k O Fi ae O U Cd O P. aD P. an a) P. P. on N P, a) P. P. >+ P. P. 0 P. O P. P, A 0 d) k a) a) F. a) 0 0 r4 U a) U 0 U a) U 0 U U aD U 0 .0 •r4 U•ri U •.i +) O •r-I •ri +) O -EEC U •.i - 0 4-) .O, C 3 C 3 o C 3 3 0 C 3 C 3 C O O F O H z O F H z O F O F o O 0 0 X .y a w , 0 . • 6 • Fi z to cam• Fa Fc - k k k H k c: ri fa 0 0 0 0 0 0 O ,—I C) 4s .N 4-) +) 4-) 4-I a) Cs. •ri E C.) A U U A 0 U U U FY CD O Cd a-) O ca 4-) Ed td ca ed a 4 F. •ri F. Ft •r+ k k F k 6 O N +) U 4-) Y 0 4J e) 4-1 N 0 .0 C C C C C C C C 0 0 0 0 0 0 0 O z U U 0 0 0 U 0 . C w Z H O O 0 • - V) > H •ri Z O 0 N o 14 k P U Uri ca V) cd U Fe In m I en z Ft >( k a) I 0 0 I 0 0 0 a) 0 Fi C 0 H O a) U 6 U > . K • cd 0 w = C 0. I-. Q to I en 1 I C E E E ri to E •1 C 4 Z A 1 k O k ctrl k O C 0 a) C O k C E .ra 0 •rI •r+ O U O C.) 4 O F. 0 Cd O 4i W U a-) U v. •ri H 4-1 a) Y G. 0 It) Fi O 0 to to to a) N U O en U E ri r•a r-+ A 0 td N ri I-I ri- Fi ^y Cd EU a cd 0 A on fel Cd +) E H Ca O 0 E a a) 4i Ft 0 a•) •r4 i-) •n4 •r1 E a-1 O •ri H 4-) 4-) a) cd a E a) Y •ri Fi U C U 0 CC 4) 00 00 td re O cd P' C 3 0 O k O k 0 O k cd Oct O U 0 z 0 0 a) .n a) 0 in 0 H .0 Fa H N 0 Z 6 E 6 E d' " E N 6 +) co ix CU V) 0 W . n) • 04 Ca. C C) • •rl C >. 4) > N N to to to N tn w O •ri E a) 0 0 a) 0 0 0 0 a) > O F+ k >^ z >-, >• z >, >-, >• >+ c4 ri G sk O r-1 R. O o A 0 .O a 6 Fi 0 • x P4 X. 0 C O •N • U 'Ii ,C Fa 0 U O 0 cd b cd 0 0 C bo ad C A •ri a) •-a U k a) . C 6 4) N Lq cd C a) O •r+ a) •ri k 'C9 al LU C 0 °U cd U a) lob C FA .n m Y > C a) H C a) C in C 0 •r1 O .-i0 td H Cd cd ca '- LY a C7 H V) 0. CO 0. V) H F, m Fi x Q/ - 0 0 0 N 5- - _ CC Tai - - IO -O C O O 10 CV 0 OO r 10 O - IN - - I- 4-' 3 to CI) N- Ol a O C•-) CO CO- IN CO N. C -0 0 -. . _ - - 001 Q.) -r v r" N ri. r4 - C4-CV- r-1 ra ti 17 r-4 S- N E al- 4R t13 tick ts? -4c)-el- . bR a 43 .... \ S• 0- 004 r Ir~ 0 _ _ - 4-' C a1 N E a) C 4- 4-' >, V) O 0 0 0 V) V r N 3•r N -1-- U-1 rW aa1 4- 4-> ri I- LO O M O CY 09 0 01 4-' 7 Sn CC a) U tO IS) to LO 'S V 0 In) C'9 0 7 4- Y G 0 >)O' a) • - • O a) C W r r CO O CO 0 CO O CO 0 O O S- a1 I4 cC S--C S-r 4,4 b4 464 64 dq 42444 bs 64 a- S.. E N. U N <' O O • 0 S- >, 01 Z O. C W0 04) 0 iv --. .--1 O - +' O 4- 0- 33 N N . ^-I - E S- .n S- OC < - 0CG r4-' >1 0 W I- 4-' C N ..0 CO Z m o a N r CO a) U W E I C +' ? W O 5- a) O LO 0 a/ an U • >) 0 J +' OO-' •rn U >) r Cr Z LL W 4-3 OI -N CO N O CX ct IC) r+ C') ct C it S. O L O_ -O .- O .1 SY 0 0- O N. CO r-1 M 01 CO N a 4-3 •r 4.' CC O r- S- N a) CO . ri N 0 CO rl r4 N. la V C V) 4-' C O V) N O-r r e a a ^ a ^ ^ ^ a a a r L' r rC O W Cl. 4-' 4->r S- ct d' Cil rt 04 CT LO Cr ci' M W U 0 3 E O O C O a) to cf O IN 11) CO IN N N In co W Z 4-' N (1) CO L 2--1 4- a1 C N r F- Q C S- -0 E b4 4.4 64 b4 b4 4444 b4 b'a 49- 0 m O > N (I) 3 4-3-r m al r +' O '-4 O C V) VI > 4' C 4-' O C C.) 0- E O a) 7 0 Co 'C a) d 0 QUO-' 4- Z W Y 4-3 N E W E Ct. r N d CO CC 4-' C C Nr 0 O S--r • N an a W W N 4-' X V) tin a W 0 C N N 3 CC (/) a) W 3 F- a3 en F- 4-' S- CO S > O 4Z it O 0 In 0OIO F- W 0C O 4-' tO N 4-- i r+r4 I-4 E 4-' a) O O M LO 04 0 LOO U) 0 01 r O S- CD 49- • CL I- 4-' N N LCI CV 4I) 01 d' IN al IN SO CO C W O Q V) C-0 3 Se • S- >l V) C S_b4 U = a1•r 4- 4-' r1 CV .-1 r1 r-I rl.--I H r1 re • O 4-3 O a3 a/ O S.. N a/ C b4 49- 49- b4 b4 dfab4 49- b4 4/9- 4--r L 0- Q1 CC 0 S-0- C O r C >, S- > W < 3 C-) r 4-1 NCO-r- 0_ ra 0 0 r 0 r1 4-) W 0 • U IL F- 5-•.- 0 N 0 Q 4- a1 4-' •.4Fa 0 CC Q O C 0 S- S- 3 04_ 4-' 0 0 d Ooh' C 0 N CO W CIS) 4-' a)to 3 S- '--r I-- ON. CCE O X - cc U r\ 4-' O N N N NCI) " QW 4-' ry O 0 01 0 0 0 0 CO O N VDL- E4-' N. 0- 0 N\ O O CV O 0 0 O .--I O CT >l O 4-O) S O r Ia O 0l Cn IC) 04 CO CO rr CT) I— N >,4-) .0 >)=r N OCC 3 a a a a a A•r 4' 0 0 a4- 0 LO 10 C`-) CO .--1 r4 v Cr) 01 V) U >1 S_ 4-' a 0 O 01 h CO ct CV 1%.I- CO CO 0 r -0 -O a1 in rI 0 0- r-a el .--I er r-1 rI r E a O z Cl, N N O -0 O U S- cC Q S_ a S.-r S. a) 3 4- N a a1.0 a O)4- a N E d) r CO 0 7 0 -0 4- 3 W 4-' 4- > 0 0 4- C E ai o 23- C E U 3 O S- 0 0 N 0 0 S- C r E 4- N O s -.40.-- 0 3 -1-' 0 N 4' O C O N 4.3 r 0 U -0 0 C S 0) 0 0E v•ranO CO 0 - C a-r a) 4-' 4' N > O X 3 N U 4-' -0 CO C O )C co 0- O C E o C C V) 0 5- N 5- C S- a) °r r 7 111 0 CI) 4-' 0 C N Q W 0> 4.3 r O -0 4' 4-' S E 0) ¢ 0- al C 0 a) N O E N L C C d 0)N 'I- C S- LI UQ E . O 0) N W a3 CO N 0 N 4-' r 4-) L 4-) -0 4-' C C S- C • N N C S- C a➢ N a1 N 3 0 C 7 NN 7 S.. > CO Q CO 00 W 0 ¢ x CO f V) CO 0 < 0 E-- )-4 CI H • d Mr. Howard Way, Chairman of the Project Area Committee , stated that there has been no objection in the community to the Senior Citizens Housing Project. Mr. Gene Jacobs , Attorney for the Redevelopment Agency, stated that the developer "would be lucky to make any profit" ; that Santa Ana is fortunate to have the commitment from HUD; that the high rise concept. is very convenient for senior citizens ; that it is already a matter of law that qualified persons dis - placed by the project have priority admittance to senior citi- zens housing , and there is no problem in adding that provision to the developer' s contract. The Public Hearing was continued to 2 : 00 P.M. January 5 , 1976 • in the Council Chambers , on the motion of Councilman Evans , z seconded by Councilman Ortiz , and carried (7-0) unanimously. CA 137 . 8 I' RECESS At 4 :40 P.M. Mayor Garthe 4 REDEVELOPMENT AGENCY MEETING recessed the City Council meeting to .hold the Redevelopment Agency Meeting; the Council meeting was reconvened at 4 : 45 P.M. with the same Councilmen present. r AGENDA ORDER By unanimous informal consent, Item #56 , the Agenda Review Committee Report, was scheduled r for discussion after the balance of the afternoon calendar. `s LOWELL PARK NAME SELECTION "Lowell Mini Nature Park" "LOWELL MINI NATURE PARK" was approved as the name Iof the park on the west side of Lowell School as i selected by Lowell School children and approved by the Board 1 of Recreation and Parks on November 24 , 1975 , on the motion of Councilman Evans , seconded by Councilman Ward and carried t (7-0) unanimously. The report of Ron Ono , Park Department , 1 dated December 9, 1975 , regarding the selection of the park name p and the sign design and construction was reviewed by Council prior to the vote ; Councilman Bricken suggested that the park I / sign recognize the school children for having selected the name F34, A. ,,!en of the park. Councilman Ward requested that Council have an opportunity to review the sign design prior to construction . CA 52 MEETING TO CONSIDER On the recommendation TRASH RATE ADJUSTMENTS of the City Manager to f E set a special meeting time for consideration of trash rate adjustments , an Adjourned Regular Meeting of' the 1 City Council was set for 12 : 00 Noon on January 5 , 1976 , in 1 i Room '831 , to consider the City Manager ' s Phase I report regard- 1 ing trash rate adjustments , on the motion of Councilman Evans , 1 seconded by Councilman Brandt and carried (7-0) unanimously. I ! CA 11 . 4 = I APPROPRIATION ADJUSTMENT #67 The December 9 , 1975 , MODIFICATIONS TO EL SALVADOR PARK report of the Assistant RECREATION CENTER BUILDING to the City Manager regarding the Community Relations .activity in the El Salvador Park Recreation Center was received and filed, and Appropriation Adjustment #67 transferring $3 , 300 for building modifications and building 1 rental was approved, on the motion of Councilman Evans , seconded by Councilman Bricken and carried (7-0) unanimously. t E CITY COUNCIL MINUTES 524 DECEMBER 15 , 1975 S 1 1 . • REQUEST FOR COUNCIL ACTION PREPARED BY Management Analyst DATE OF COUNCIL ACTION DATE 10/31/75 PHONE 4040 SUBJECT SUPPLEMENTAL MONTHLY LABOR PAYMENT TO GREAT WESTERN RECLAMATION, INC. FOR REFUSE COLLECTION APPROVED al 4(224ww4/ DEPARTMENT HEAD CITY MANAGER CLERK OF THE COUNCIL RECOMMENDED ACTION It is recommended that the City Council provide no supplemental monthly labor payments to Great Western Reclamation, Inc. in excess of the semi-annual Consumer Price Index adjustments made in conformance with the existing exclusive contract until such time as the staff is pro- vided acceptable financial statements showing capital investments and profitability of Great Western Reclamation, Inc. CONCLUSION: The City needs to determine what effect the Consumer Price Index adjustments have had on Great Western's profitability in order to evaluate the equitability of this request for a supplemental monthly labor payment. The City has not received sufficient financial information to make this determination. In a letter to Great Western dated June 6, 1975, the following request was made: "To be able to judge what will be a fair and equitable adjustment we need the wage rates from 1971 to 1974 and related increases in fringe benefits. Associated with this, we also need to review your balance sheet statements for the same period." To date the City has received a portion of the wage data but none of the balance sheet statements. This information is necessary to determine to what extent the bi-annual Consumer Price Index rate increases have covered Great Western' s operating expenses. To be fair and equitable to Great Western Reclamation and to the City, it will be necessary to have Great Western submit a certified audit report, corporate tax return for the years 1971 through 1974, or other acceptable financial statements showing capital investments and profitability. With these statements, it can be determined to what extent the Consumer Price Index adjustments have met the operating expenses of Great Western Reclamation or to what extent they have not. Furthermore, with these statements , the staff can examine the equity of the contractor's request for supplemental monthly labor payments. COMPARISON WITH OTHER CITIES: A refuse collection survey (attached) was conducted to determine the base rate paid to refuse contractors of Orange County cities. The rates in this study apply only to residential col- lections. The cities of Costa Mesa, Huntington Beach, Anaheim, Buena Park, Fullerton, Orange plus the Sanitation District of Garden Grove were surveyed. Of the eight cities surveyed, Santa Ana ranks the third highest in the amount paid to the contractor for residential pick- up. The highest amount paid is in Costa Mesa at $2.13 and next is Huntington Beach at $1.92. The refuse contractor for Santa Ana states that one of the main factors why Santa Ana's ref- use rate should be higher than the surrounding cities of Anaheim and Orange is because their refuse contractors have access to Orange County transfer stations. A transfer station is a location where a refuse contractor can dump refuse without going to a county dump site. This saves the contractor travel time and mileage to a dump site. The transfer sites are located on level ground and this saves the contractor money on truck maintenance and tire wear. Transfer stations are located in the cities of Anaheim and Huntington Beach. Great Western states that it is allowed to take only 10% to 15% of its total refuse collection to a transfer station. Therefore, Great Western loses more time in the collection of refuse because of longer trips to the Orange County dump located in Coyote Canyon as compared to cities using the transfer stations. et.1 lo/y iC 2 y U m 2 7276-191C3 REQUEST FOR COUNCIL ACTION October 31, 1975 Page 2 The City of Orange has granted it's refuse contractor a rate of $1.50 per water meter or an increase of 31¢ per unit. Orange does not have an automatic Consumer Price Index adjustment The City of Huntington Beach granted a refuse rate adjustment from $1.82 for twice a week pickup to once a week pickup for $1.92. The City extended the refuse contract until July 31, 1980. The last contract was from July 16, 1971 to February 18, 1976. The contractor for Huntington Beach must request a rate increase from the City Council since Huntington Beach does not use the Consumer Price Index to give the refuse contractor automatic rate increases. Also, a single cash payment of $30,000 was made to Huntington Beach' s refuse contractor. The City of Anaheim has given its contractor a temporary increase of 25¢ per electric me- ter. This increases the rate paid to the contractor to $1.55 per electric meter. The ref- use contractor is required to submit a certified audit report which will state the revenues and expenses of the contractor. From this information, the city auditor can determine if the 25¢ rate increase is justified based on the contractor's new union labor agreement. With the audit report, the Anaheim City Auditor states he will be able to develop accurate cost and expense information to determine what effect the recent labor wage agreement will have on the expenses of the refuse contractor. In the certified audit report, the certi- fied public accounting firm will explain any changes in accounting methods that would af- fect the revenues and expenses of the refuse contractor. The certified audit report is to be submitted to the City of Anaheim by December 31, 1975. It is a known fact that the refuse contractor's expenses have been increasing, but if his profits have also been increasing, then his revenues may have been able to offset his ex- penses. The City of Santa Ana is the only city surveyed that grants a Consumer Price Index adjust- ment twice a year. Great Western has been granted refuse rate increases at a faster rate than other refuse contractors surveyed. Therefore, Great Western has recovered its oper- ating expenses at a faster rate, assuming that the Consumer Price Index, in fact, keeps pace with rising expenses. The cities of Anaheim, Fullerton, and Orange have requested their refuse contractor to provide the City Council with financial statements to prove to the City that the refuse contractor deserves a rate increase. These cities review the contractor's balance sheet and profit and loss statements to determine the financial condition of the contractor. Santa Ana has not received similar information from the contractor. BACKGROUND: In August, 1975, the City's refuse contractor, Great Western Reclamation, Inc. , requested the following supplemental monthly labor payments effective: Monthly Cumulative Payment Payment Retroactive to May 1, 1975 $.30 per water meter $ .30 May 1, 1976 . 10 per water meter .40 May 1, 1977 .10 per water meter .50 Cumulative $.50 per water meter $ .50 Great Western Reclamation, Inc. has proposed the following changes to the refuse contract to become effective November 1, 1975. They have requested a supplemental monthly labor payment in addition to the Consumer Price Index rate adjustment granted each May and Novem- ber. This rate adjustment is being requested because the contractor's labor costs have increased due to settlement of a new union labor contract in May of 1975. The base pay for a refuse truck driver has increased from $3.28 to $4.00 per hour (22%) in addition to increases in fringe benefits. The contractor is asking for the following supplemental month- ly labor payments effective: Monthly Cumulative Payment Payment November 1, 1975 $.15 per water meter $.15 November 1, 1976 .10 per water meter .25 November 1, 1977 .10 per water meter .35 Cumulative $.35 per water meter $.35 Great Western wants to eliminate the refuse contract payments which are paid to Santa Ana for the City consent to the sale of Great Western to SCA Services , Inc. On December 10, 1973, Great Western Reclamation agreed to pay the City of Santa Ana for the right to sell the stock to Great Western Reclamation.. The agreement reads, "The owners of all the stock REQUEST FOR COUNCIL ACTION October 31, 1975 Page 3 of contractor desire to obtain the consent of City to a transfer of all of their stock of contractor to SCA Services, Inc. ( "SCA") in accordance with an agreement reached between SCA and such stockholders. City desires to obtain contractor's agreement to certain mod- ification in the agreement." The refuse contractor is willing to eliminate the annual May Consumer Price Index increase. The City would have to adjust the rate paid Great Western Reclamation only once a year in November. FINANCIAL ANALYSIS: The total cost of these proposed supplemental monthly labor payments over a three-year per- iod is projected to be $361,000. SUPPLEMENTAL PAYMENTS November 1, 1975 - October 31, 1976 $ 71,000 November 1, 1976 - October 31, 1977 120,000 November 1, 1977 - October 31, 1978 170,000 TOTAL $361,000 The elimination of Great Western's refuse contract refund to the City would cost the City $108,000 in lost revenue over the three-year period. REFUSE CONTRACT REFUND November 1, 1975 - October 31, 1976 $ 34,000 November 1, 1976 - October 31,1977 36,000 November 1, 1977 - October 31, 1978 38,000 TOTAL $108,000 The elimination of the annual May Consumer Price Index increase would cost the refuse con- tractor approximately $50,400 in lost revenues. ELIMINATION OF MAY CONSUMER PRICE INDEX INCREASE May 1, 1975 - October 31, 1976 ($16,600) May 1, 1976 - October 31, 1977 ( 16,800) May 1, 1977 - October 31, 1978 17,000 TOTAL IIKTga The total projected increase in revenues for Great Western Reclamation is $418,600 for the three year period (November 1, 1975- October 31, 1978) . Supplemental Payments $361,000 Elimination of refuse contract refund 108,000 Elimination of May CPI increase 50,400) $418,600 If the supplemental monthly labor payment is granted as of November 1975, an additional 15¢ will have to be added to the current residential refuse rate of $2.00 to keep the ref- use program on a self-supporting basis through- July 31, 1976. This would increase the cost for a single family homeowner from $2.00 per month to $2.15 per month, or an increase of 7.5%. Since September 30, 1975, when the rate was $1.80 per month, this would mean an in- crease of 19.4%. Also, the supplemental monthly payment would impact all other residential units such as duplex, triplex, four-plex or other user not having containerized service. DTY 10/29/75 HISTORICAL DATA OF CONSUMER PRICE INDEX COMPARED TO REFUSE RATES SINCE 1964 PAYMENT TO CON- CONSUMER PRICE INDEX ACCUMU- ACTUAL PAYMENT ACCUMU- TRACTOR WITHOUT ACCUMU- (157-'59 = 100) LATEO % TO CONTRACTOR LATED % LABOR PAYMENT LATED % 05/64 108.0 . $ .78 $ 11/64 109.9 1.8 .79 1.3 • 05/65 111.4 3.1 .81 3.8 11/65 112.6 4.3 '.82 5.1 . 05/66 113.2 4.8 .82 5.1 11/66 114.2 5.7. .83 .6.4 05/67 116.3 7.7 .85 9.0 11/67 116.9 8.2 .86 10.3 05/68 119.9 11.0 .89 14.1 11/68 120.9 11.9 .89 14.1 05/69 124.2 15.0 .93 19.2 11/69 126.9 17.5 .95 21.8 05/70 131.1 21.4 .99 . 26.9 11/70 133.8 23.9. 1.01 29.5 05/71 138.9 28.6 1.05 34.6 11/71* 141.1 30.6 1.21 55.1 1.06 35.9 05/72* 142.7 32.1 1.27 62.8 1.08 38.5 11/72 142.6 . 32.0 1.29 65.4 1.10 41.0 05/73 149.8 38.7 1.36 74.4 1.13 44.9 11/73 157.1 45.5 1.39 78.2 1.16 48.7 05/74* 165.3 53.1 1.51 93.6 1.24 59.0 11/74 174.8 61.9 1.58 102.6 1.31 67.9 05/75 184.5 70.8 1.68 115.4 1.41 80.8 TOTAL INCREASE 70.8% 115.4% 80.8% 11/75 193.5 1.75 Projected with normal Consumer Price Index increase. 05/76 202.5 1.82 Includes Consumer Price Index increase plus special labor request. 11/75 193.5 1.90 05/76 202.5 1.97 *Special labor rate adjustment August 1, 1971 $0.15 May 1, 1972 0.04 May 1, 1973 0.04 May 1, 1974 . 0.04 $0.27 Special labor request" November 1, 1975 $ .15 November 1, 1976 .1 November 1, 1977 .10 F--s i a w n V) 7' N 7" -5 T V) a r+ 7J 'Q N -J. (-} 7 -h -fin B c< - -1 o N -, CD Z 0 4y \ . c-r -I. -a -i - . w c o w m o c m 7- m -s �+ 7 w m w o 0 0 0 • 7-. w 2 -s -5 12I- t l c+ r+ C 7• N '0 < '0 -5 '0 7 m n -�• w < X n �• "S 7 7 0 7 �• Pa T o m • T \ w c< n ` rr fi m O 0 N n r m m 5 < r 5 w N S r O w 0 / o ft \` m tT -'' C '5 c< O w m w m m N 0 N -+• --=. 7' = w c-F CT 4 t "' ! � 7" * �J 0 m CD c N c+ O "5 -' 2 n rF m N w 7. 7 -I -5 n •-' -I V) 0 0 's e; f1 O w n ` - m 0 rF C N C rF N w r-+ m n r+ w 7 o n c< m -.•, m 0 a o E "5 (.,i ' co 7w . , . 7 m 7" CT -5 0 rF J 7 7 CD C < O. '5 m ..0 w h a 7 C m 'p It• 7 ro e rr c< O w . CL1- 7 " c< m Q. •-1C -.1 c-t w ri- N CO N > E:�. '.X H.- CO (nN rr -S • = n O 7 c-I. O CD 1.n c-F 7 m w w m m 7' +• 7a N m b V CO c+ w 0 C c+ 0 7 x .. v) 4 r+.0 N + 0 f ' �. 'S ro �q •s -5 -5 Cr -' w r+ 7 '5 7" 9 O C m c - n w r+ 3- O r+ 7 n n '5 n • w 3 n m < CD w 3 w 0 N w -5 -h (Q> -5 7 7S' l0 1 -+. 0 a . a.'(3 m T c< 7 'S'c cG 7 'S 7' r. c+ -h O N Cu 2 (I C.+) CL w w .0 0 'S 7 :O w Vl CO ( 7 O 0 m•5 �• ..0 -I V) r+ C c N < 0 7 N w -5 O C CO CL CD 7 m r+ 7 0 r+ m C w .. O N 0--0 O m C `< w 0 N 0 •• C. - w 7 CD CT r+ w '5 2 m r+ n coN J V C - -J r+ --. n N 0 2 `{ 3 -h o ro S7 7' 7' m C . n O < Cu (n r+c< -�. 7 m • "5 c< 7" m -h 'S r+ m 7 -0 O m (Pro 2 -S O - 0• w 7 . O 0 0 .0 CI'.-0 7 -+• - 7 w • N n •� -' c+ 0 "0 N c+ c+ E r+ r+ w n w N -• C r+ ro rF co n 0 7 w c+ N . w 7' c-F c< m -h 7 ID -(• 0 7- Cr o- -t. CL c< w m -• Cr m "-5 5 7 3 J 5 '5 CL 0 pffir''" (I) o m r+ f+7 9 -h X -• -'. Z E m N m m O 7 n 'S c< -5 --•, m 0-h r+ w -• m w 0 7 J 7 a `< n c+ • CD 7 7 m - w N c< 0- •. r+ 9 r+ r+ 0 -+."0 w CO -h r+ n 7 ro rF n m (DN w .7 C ti w N m • c+ 7c- c+ O w r+ 7- c< n E 0 •• 0' -• Z. 7 c< << m "5 . 7 w w (D0 (D m m r+ n f 3 7 m a w crt < 0' -hi-0 7 N -0 -+. 0 w 7" -h-1, 0 w 7 CD0- ro •-• O rF r+ -5 7 rt w m O 7 0 N r+ CL X 0 m '5 Co N m m O 7 ch Z pn '5 rr 7 r+ -'• 0 q 0. C 'S n w n r+ E H �i'rJ N m 0 b w m r-+ rh (D Cr7 N O. O 7' m 9 8 ch C m 7 .. N 7 ra. m -1( :) ++ -•. c< rt0 N 7 - N m C c+ 0- - c+ m 7 r+ n m N T tcdn c+ P)w N w -•. N 7' m c< n Cl_ ..O. 7 -• '5 rr n -•• Cr rF r+ m rF o 7 w (DO w 7 w (-* O -' ^h -5 0- 7' 3 moo w X 7 m m 0' -fi N 7 m w (< m co O 'S w 7 n CLO T) -h (1 -h r+ o c < 7 -0 h N n m w rr -5 m D m -J. 7- -h Cm CT (D --I -5 Jwoor n7- CL m ro m .o N 'Y 7• -� w J c< 'O w n C") N w C w 0 l0 0 m r+ w Cu N 7 -5 n c+ r+ - - . 7' J V - 7 o- 2 cc 0 N - Jm ro p) 7, c+ w • rr N E m r< w 7 D . c w w w CC m 7 0 r'r m w w m'J O w C r+ 7 n 0 •ro on ch. w CL 7 '5 N N 7 . r+ Z -' m 0_ 7' o 0 E 7- • n. -5 m r+ rF O ••-{ N E m -0 -fi'7 m m 7- '5 w w 2 w N 7 c< A w c+ m w 0. o 0 X w O 0 C rr 7 • -h • •• m 7 m N -' N c< <-1- r+ 0 ro CL o r+ 1 -h - r+ _ > `""� w CL r+ -) - -1, O •• m c0 7 -•• m w ••• ti �• m c+ C 7 m 7' rrt. r F r + d 7 OJ 7 -5 c< -h 'S al- -•• -5 N X N F m... 7 rn m �a. Rw N --i. 7 7' O -)l ro al- 0-5 m C 7- -h • 0 -+• 7 - m at 7 -5 C N et c0 N m al- w ro 0 .. m • N w N 7' m -5 7 V "0 n 0- .-1L< -5 • 0 a m r+-0 r+ O r+ .p0 o O -•. m m c+ <• n -5 w O C 7' fi • E -5 m C-5 c< c O m -, m n m - ro c'F •. c+c< N CL r O w .0 c- `5 N -5 07 7' 7 .. -Ft w N C N 1I' -• C "5 r+ w rt 2 n m ELL) V O CL at--c C at- -n n (C. -0 Cr 7- 0 -i. VV) a•`- -�'• Hi n w (-) rt O" o c+ a) C Cr N m �✓ 7 rr - N O O m rF 0 7' 0 'SV N m m Ch 70 -h 7 "5 •. 7 r+'0 E (-+ 3 w '5 O -h c< V) 0 E N r+ 7" O -•• rr 0 -h m 7 m 0 O O r+ -• N E w C 7' 0 -' O m J 7 r+.SS 2 -5 C w -• C • N 2 w n w 7 c+ -. C w -h c< -O r+ r+ m N w rt. Cr r+ w w m rt -h -0 7 ' -5 -5 CD - m 0- m N K -• r+ N t9 CD CD r+ N 0113 0 r+ 0 I J pp • ,�` MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA August 18, 1975 The meeting was called to order in Room 831 , City Hall , 20 Civic Center Plaza, at 12 :15 P.M. by Mayor John Garthe , proper notice and posting having been accomplished, with affidavits on file in the office of the Clerk of the Council . The following Councilmen were present : Gordon Bricken , Harry K. Yamamoto , Vernon S. Evans , James E. Ward, and Mayor John Garthe . Councilmen David L. Brandt and David F. Ortiz were absent. The following staff members were also. present : City Manager Bruce C. Spragg, City Attorney Keith L. Gow, Director of Planning Charles C. Zimmerman, Assistant Director of Public Works John Stevens , Assistant Fire Chief Raymond H. Bachtelle , and Clerk of the Council Florence I . Malone . Lynn O' Dell , reporter for "The Register", was also present . PARAMEDIC PROGRAM The City Manager added to his status report dated August 12 , with an oral presenta- tion, using charts which described the paramedic program and its costs over the past ten months . He stated that a second paramedic unit should be in operation by December 1976 , at which time the existing unit would be used for standby purposes ; that under a proposed contract with the Santa Ana-Tustin Community Hospital , recommended user fees would be billed and collected by the hospital , at a cost of $3. 00 each; and that no one would be refused service because of inability to pay the user fee . He further added that although the Board of Supervisors had not acted to designate the Santa Ana-Tustin Community Hospital as a paramedic base training hospital, the Board had requested a report from the County Administrative Officer on the current training situa- tion for firemen paramedics within three weeks. . CA 64. 2 TRASH RATES The City Manager referred to his reports of August 1 and 13 , regarding a recommended 11% refuse rate increase to maintain the program on a self-supporting basis for fiscal year 1975-76 , and stated that the increase amounted to 20¢ more per, month for the single family home owner (from the present 51. 80 to $2 . 00) . He further stated that the refuse contractor, Great Western Reclamation, had requested a retroactive rate adjust- ment because of increased labor costs which would amount to 30¢ per water meter, commencing May 1, 1975 and ending April 30 , 1976 , at which time it would advance to 40¢ per water meter through April 30 , 1977, with a final increase of 50¢ per water meter commencing May 1 , 1977 ; that the administration does not have enough information to make a good judgment on the merit of the request, because it involves the profitability of the franchise . He commended the contractor' s services , and suggested that the -Council support the 11% increase in trash rates recommended by the staff, and authorize an audit of the residential and commer- cial services performed by the contractor, to include the possibility of an extension of the contract, with a target date of December, 1975 for report and recommendation to the City Council. He pointed out that the contractor' s request would require a 70¢ increase (from $1. 80 to $2. 50 per month) for the single family homeowner trash rate . CITY COUNCIL MINUTES 345 AUGUST 18 , 1975 SL6T ` 8I ISRBRV 9t£ SHIRNINI 'IIONI103 HID II3NROO ani. 3O NUT'I3 HNOIVW ° I RONHUO Id • •p1tM utuWTt3unoD Aq papuooas `ua)otag uelutrounoD ;o uoT;oIu panoadd2 lisnoultutun a4; uo paulnolpe soM • 8ut3aam 0113 •Ni'd 00: Z 3V iNaWffmoraV Li ° LL VD •auat3 Jo )132T 01 anp EpuaBV •_; 8uTlaayl 1-Tn8ag 014; 03 panuT;uoo SEM uot3e3uasaad s ,uuuaaoad • 1N -sults 2utpJrnq A;Irgl Puy ` sults alTs ezETd 103UO3 orn1O ano; ` 501103301Tp utta3sapad xrs ' satao33aatp 1a3sow 0M3 • 8utpnTaut 'xooTq aadns aal:ua3 3TAT3 all; ;no148noag3 suoT;230T snotaBA uT pasn aq o; 2utu2Ts Jo adAl 043 pagta3sap 04 `Tapom papoa aolo3 2 8uTsR °aTgeanp puo aTgtxaT; se sults pasod -oad a14. pagzaosap ' Iue3Tnsuoo 043 8utluasaada1 'uuulaaag qoq '00' 000` 09$ ATa3EUI -ixoadde do ;sop 2 32 ` Z 'ON ant3Euaa2IV papuaumlaoaa ;jogs 3241 put `. saostnaadng Jo panog au; pun Itouno0 A3T0 0143 Aq I2AolddE 1od sant;2u1a3Tt do aaquxnu 2 pal3tulgns p24 ` Sa3et3ossy pun °sou Aogaq 'u2a2oad 811111816 0143 10J ;ut3Tnsuo3 043 1.2112 salEnbapEut St 1031103 3TATO 0143 UT 8U11121S 042 32143 pa;t;s sxaoM DIIgnd d0 103301TQ 3uE3stssy 0111 SOIHdVHIO 2I'aZNdO OIAIO r 'TT VO °ao;3Ea3uo3 04; Aq aansolosTp TET3ueuT; IeUITUTm glrM IT3uno9 03 uot3epuaumlo3oa s;T JO; u013emaogut Aaessaoau 04; aptnoad pinoM 324; 2rpn2 uE 10J suoTlopuaunuooaa S ,;;o2s 043 pa;Ioddns strong pun naf3tag 'pzEA( uamTTOunoO °a[qr goad AT148T14 sT as2aaouT 01ra TEToaaunuoo E ' 9L6T ` T A1enuEr uo 32143 put ` TEAo1dd2 aoJ sxaoM 3TTgnd do 1o33aatQ 043 0l pa33rulgns ale put '10332131103 awl Act los an sa321 T2T3aammo3 32143 pal_23s . nn 2T 1110101414 `paMoTTo; ooTAaas T213101=03 214; uo uoassn3sTsp y • stsnq ;tun and t uo st ;uow ed 'pe3st[ S013T3 10430 UT S2aaa14M ` euy 231FS UT 10332131103 uot3oaTTo3 aSTIJaa a143 0l ;uaulkEd ao; sTs2q t s2 pasn 032 Saa;aW 1a3e1 3243 3oadsaa 043 uT PTTBA lou SPM sat313 A;unoj 08U210 043 do uostatduloo 043 3243 pappn aauland on saaAoiduca s ,Auuduroo 0143 03 prod aq of aan8TJ. rn04 aad SL °£$ 043 ao; „g8no3 8u24„ 03 uoTlua3ur SIT passaacIxa peg Xutduioo . au3 148n0143T2 `alta 08214 anon aad oo v$ act; 03 uot3rsoddo Lure passaadxa X313 043 p214 00U ` Ir3uno3 k3TO 04; 10 uoT;ta;STUTUIp2 a4; 104310 Aq 3sanbaa 3uamasn[pE 0320 2 43Tm uot33unCUo3 uT Xutduioo 043 moa; ;uau[a3tls 1213u211T; TeT3T33o 112 and 3sanbaa algtssod 2 03 03ua10J01 ou uaaq Feu 01043 SuoT32T;o8au 0x1036 0113 8utanp 124; pawns `1101; -eureloag u1a3saM ;2019 8ut3uesaxdaa "as 4utuzx32Tg mat 'ail •36048114 0143 81101112 are 10338131103 014; 0; prod 0321 put 0321 46213 1011140 GMT( 0143 lug; ;mg '3saMoT 014; 8UoIIIe sT uot3oaTToo asn;aa • 003 3uolu td XT43Uotu 231d23 aod s ,2uy 2luuS 32143 paloJrpuT 4oT4M `A3uno9 a2u210 uT not;eindod algtredusoo Jo sal3To pun guy 231125 Jo 63603 asn;aa 8U214046 ` SL6I ` 8I 3sn2ny p032p ;raga uostaedwo3 2 pa3ngtl;stp aa$nutw ATM 041 . 5 W H• r HI "d r--. o''d H 'xi 0 1-10 ea H. 0 or? 5 H to H Ed H F+ H CG �o .. o H• 0 co 1-1) w rt CD CDHI O rt CD CD to .a O o H ro 0 0 0 H (D I-. a' 9 n 0 •• 0 v `G H 0 z w rt X o 0 w 0 0 rt to 0 14) \° H. n .. rt. H wrt Hot H. y Hi H• H H. H• G C to x `G 0' 1-' 0 •• 0. 11) U) w a rr Z N 0 0 0w H rt w n Ho C) COP CD 0 o H• a 0 n n n P Oo `G P O H4 H• 0 0 0 0 (D H Po CO rt P oH 'd P. rt 'd OP.O H a ' O P. rF H 0 (D O to 'd :-.Jv to i w14 - O ON 0 0 0 H H• w 9 0 0 C 1-h0 O rt 5 `G 9/ (A n G 'C '�7 w p yb o C O H• O rF to H r N H• C H. O H Fh 0 0 0 - 'd to O w O C 'b •• w 6AY' - 9 O w 'd X X CrC' X 0 �• O rt r e H H w O 0 0 H F-• 0 H W r (D (v V Fh 0."1:i w w (D w O ro b n g 0 9 (D 0 H• - n rF o' 0 0 F-• rF .. to m 5 m pa H. 1--31/4< 4-< 11 ‘< H () CJH O OH "-( rt 0 tato 0' 0" H F-•' Ilt 0 H gi 2 H H• t`) H. 0 0 0 rtH 0 (n 9 H w HO. HH e a' 0 V H. 0 • O 0 w • n Z to 0 to Ort 5 Hj F•'w• H^s P O (D v C r t+ C 0 0 H CFI F• 7„_,`G H) n N H 0 0 to 0 z rF 4- H• (D 9•• to P. P O K b 0 tr1 c w w 0 rF H• 0 r H y N 0 0 M 0 r N N 1--• H CD rF 0 O C/) H a H1,-, Cr` rte G F-• t a' - 0 H. r 9 0 art rt H) HCD H H• O t) 0 P O P H• 0 to r C H O ww to CO <D t0 0' 0 V) n rt p H N H w 0" w 1.-h 0 0 C-) w � v � v w 0 art m x w W H' o n H H n d ro w 1-3X '- J p, 0, CP W P rt to P' w `G `G `G O 0 0 P. H O H. O O H H P. 1-e o `G i o CD W 5 d' rt rF CD He rF $ O 0 0000CDP. o z 0 O H. (D o 0 O CD 0 0 0 0 F+ H' N H. o' o z'd rt co 7 co w H Z H rt c • p d d d H H H CD art .. . r H. 0 P rt o w H ir4 0 H '(' rt x W 0 0 d' 0 0' Oq o N G `G w O F-' 0 O H• r '°y.� •• H rt D C7' 1 t ! t 0 P 0 'd Di H. 1 " F+ H• P CD (D 0 0 P • P. .0 0 Ki 0 a' H. H' O rt H. H o to (O 1.0 to P. 0' 5 (D rt W 0 0 0 O P CD F-a°G to Fh—0 H v v v 'd w o' 0 o to O P. O 0' r H to Fd rF (n'd P H -i ON W . P.H• wG CD rt H 0 0 w rt 9 O H F-' Cl) to 0 rt V 0 rt 0 'd rF`G CD H ^• 'd rt H• H O to p 0 0' P CD • to 0' ON to (D ,O 1-, H. o H• rt 0 0 w OP o O rt F'h w 0' 'd rt 0 " 0 C CD O Fh H• 0 CD CD 0 CD rF `A O 0 e 0 rt CD O a rt CD 5 0 0 0 H g -Ps H to w 0' H. 0 to (D H 9 9 9 0 H H o 0' to 1T1X 0 H 0 yw CD 0 NCD 0 0' 0 'd O 0 'd 'd 'd 5 0 w o N O rt {... P O O rt H 0' P. w CD . w F+ H+ 9 n n rF'd H H H tY rt • P I 0 rt O w 0 H• a rt H oto Fh 0 'd H 0 1d O P H. H• H• 0 CD 'd 0 $ Zn 1-• a W rt w w in' H• O H• t H 0 N H `G F-. H' Ha 0 'd 0 O • O000 0' H. 1-1. 1.1 tn rt N 0 CO rt 0 w rt 0 0 0 C w 9 F+ 0 0 0 H• 0 0 CD H H• ro r 'd oq 0 o e z O Pp 0 0 W W W W F-• a 0 rt H. 'd 'd 'd rF`G 5 n Fh P. P O to CD 'd H• H ) 0 0 0 0 a'.... Fh 5 H a 0 0 0 o H C rF O rF F-. H rF'd C O 't O O Hp� P rF •• •• •• •• C H. 0 P H H H O co to a CD 0 CO o 0 to 0 H "i O H 0 P. H to G 0 0 d' rt 0 CD 0 rt V 0 re H ro to O 7 �1 M a H• 1-' F-' H• H• (D rF 0 rt rF 0 E S S 0' o 0000 0-100911 P O CD to to tO a tD 0 5 1 P 0 www H• 0 0 P. • 0 F• H. to H n ' W 0 t1 V V v V 0 CD 5 Fd H P O rt rF `G to Fi rF u. rt x rF 0 CD 7J 1. (o m Do oo y Ot W H. o P. m O 0 G o C a' ro P' 0 oo 0 'd to , 1 d0 H. w rt H G rF 0 5 H P. H H H -" H• 0 y (D n • 0 Ph) 0 9 ' 1h-11, o 0 0 (D 0 0 H• w 0 X to rt r 0 to H H r .r H• 0 n rF 5 5 5 Cr 0 5 n yrt rt rF rt , IH • O rt rt 0trt (D H• 0 0 0 0 1-1) a rF 0 0 0 0" 0 w 0 y CD N W( n 0 " H a' H• 0 rF rt rt H H H rF 0 0 P H• F+ et 0 O tri 0 Oq 0 F-' G 0 0 CD 0 H• H• H' H. Cm H. m `G C H) C/) NO ID) 'd w to h H• Ed hi M W HW FH K ul I--'CD A) H H H bP G CD 5 H• 0 0 H H va o 9 t0 •• 0 C H O J a (0 co Cr. w 'd 0 0 0 H• `G CD H cD to H 0 0 C O H 0 7a Hot 0 Pa ON N h..“8 t0 F-• H. rt. w P 0F'd B Ht G Oct rt 1-'d Fd w " " • " 0 0 H• 0 0 C' £ w 0 CY 0' rt 0 G 0 H H• C a' 0 0 5 000000 5 0 P. rt. 0H•M O O P 0 `d H to to 0 0 71 to O H P 000000 0 $ H• H n n rF 0 to 0 H• H 0 CD 0 Fh CD rt to O rF (D a 000 00 rF 0 H• O G (D 0 "d m 0 too H• a 0 to rF 0 Fh 0 "d 0 P Fh H• �Oq (H) . H H in H. H. r O 5 0 P OP '-h P ro rt `G D H• 0 w (D o P P n 0 `• 'd 0 oo H H r (D b `G w to S F• 'd o 0 0 H. 0 w 5 0 11 o to a W 0 P M trtn H o a He 0' 0 CCD Fw+ O H. H• d' to rt O rt 0 0•10 0 0 0 0 0 rt 00 0 0 ,.O 0 w to H co /1 y •- O 0 w H• H 0 H• 0 0 P. H. H• 0 P 0 C P. w H• `G a V �/! HI 5 0o a t 0 H G O 0 `G a G rt to 0 co 0 ht 0 0 W b o '• I O H H• O w 0 0 0 N 0 0 0 H. yy ro to X H 0 0 w H z O to 0 0 P rF W a e 0" a s rF (D H H 1-tH rt FI (-I. rt to = 0 oH (D 0 H• CD H ,O CD rF 0 w H rt H• H• ro w a e rt H O a w C w to H' O n N a`Gz F+0 0' w G 1'hM CD 0 0 0 0 D V H• (0 0 5 H 0 H 0 0 0 1.n0 0 5 5 n 5 0 H -& rF r 5 F- 0 rt CM tow CD 0 o C H rF CD `•a rt (n w 0' w n P 0 0' H' t H. 0 t,. 'd 0 • F 0 0 G CO CD 11 -es t7w as w (D O) 0 0 ' Fh (D +•• rF w W O C C-+• Co ON rF a O • [_ - 0" C X 0 tO 0 0" m n o H to C w 1-h ° w H. P J F+ O LI O w 0 V O H p0 rt N 0 to 0' 3� 5+a 0 `G'd FG_' CD `G 0 C0-1O 00 F.• H 0900 0 F•• yy ( a (D `G H F- 0 0 1 1 rt 0 0' 0b 0 H 0" rt ¢¢11 O r0F y 0 0 ( P 0' O H O d'H `G 0 CD 0 1 = CD a P I n 0FP' , 9 p0 p„039 '--7a H'pf- rty mO H' 0S mrtrt0" H H trt-f r+ :,. n nv, y PH 0 iHI H w wC 0ro 'uvn CO. n 1-• p' 0 rt o HrH o 0 .7 CD H 0 , o • o H• H. 0 0 o rt O H• P' w P P" ,• 0 w w m \e rt pSv1 p n H, ( aq (D m m o H g P w rt coo m H oCo) 0'01rt 0 Of 0C m H. a r+ O rt m o o 0 w P p 0 P" rt p H 0 •0 t P" g P C, o CD 0 `C 0n 0 n n m P' H w H•oq 0 rt ,J •C • m C m H (D rt H - H m HIco w c 5 n H n cf 0 H• rr H• ,t o rr 0 0 0 03wn H, m o o m P' r• P H, C 9 w m E rt rt w w t✓ H• 0 H. p' C N rt X rt rt CD r+ 9 C H 0 C P' O 0 0 0 H, rt H. n 'FC rt C m 1-i 0 0 co P'ocl a O rf mw 0 Oct N ''d `C H• a"C m fu 0 - m n H, 0 P V-6 H H 0 H rt to o Cn H P H. CD CD rr•{ CC rt " H P C H• n 0 a 0, . o H' to H• rt w m P a n (D m 0 m CD O rt •• c+ ro S w w 0 O P O rt P rt0 , 0 rt CD rt m P" et 0 o 0 n 'd m P's. H 0 P' •d P 0 o •• aq Y. H, n P Ft 0" m P' 0 m '< rt 0 0 o P' Fh H. H. n o H . CD p HP t-' O 0 m P (D C 0 w CD CD fD HOOP . i-+ PH. 0 C H. 00 OH, H. Z rt - m 0 m d H 0 0 i-' t h0 x P o o m `G m H a rt H m H, P n o aq n aq P I-' i-i n n co 0 y rt 9 rf a H a t0 C tel H, H P n n a c- w 0 H. P" C rt P' w rt r+ .rt CD -3 m y H. m o o C o 0 m rt P F-h w a o 0Q H. a 9 H. P B o H o rt 01-300" HO ;C P' rt w o 0 H 0 H• to O rt• . 0 OC CCD rCD P r O rt '.L' 9 m ''d P co P H 'd m a P H. P rt H H."C f a H, 0" n rt rt P rt O C HO P H CD to P. hi O 'ti m m 0 H•10 m m H. 0 an �• `+ p arm cn-t o• yyO am 0" 0 o �D O H } to ° `+I'd COq 0 w m rt rt P H N• m m r+ a H• (o m O P x CD r• P 5 P w co a P" n 0 0 H It f- rt rf n a-' rf 0 r• rt 0 0 O' 0 P C) w rf H al k P m C O' 0 n 5 1-00 w 0 p' P' rt O O H• rt P 0 m CDP OH H• HOC men P H. s o P o n o w 0•4m rta H H cf.)P H. • n o P' C o cD 0 Z H• 0° o 0 H.sM + • P rt H P o N rt r+ F✓ o P' t, P' { • `C 0 n w 0 a --7 me nit P H' P to 0 a rf n y - rt 0 0 0 0 P H. 0 H. (D co H, { H rt Ea n F-' rt m 0 P" H. 9. GO h, E o a H. r• `'1 P 0 H• H P n m ,-3 n rt aq H C - P co H CD P O rf ° rf a H' rt H. 1 0 03 H H. H•' rt p, a P 0 CD P. w H P' P S h7 0`C r, rt r• o rf m `C w P n o 1 0 n P F•' `C P H P' H, a7 P H. rt P o Cn n o w od H tt H• H• { o "• H m 0' 0 o rt 771 P a o P' P O H• rt p o P H m H• n H w O 0 H p" i-, Pr-. Cn C O o H 000 a H. P P' CD H P 0 C rt r• C P' m P P o O rt C m o 0 `C 0P •• n C a a Hrt 0 F-, , w f-, o I-0 H, ' cm k CD r• n a t rt 0 0 o n m P o rt ro H• aq rt H { to to r°rr H, O' H. P' P H H. H w aq 0 n p' F-' w H p' P w rt m 0 o (D rt 0 H• P H• V CD CD H. O rt w H• n p P P O Cn H• w 0000 rt O { g m w 0 •• 0 P w m co a n n H `C rt P H X' o a el w P P P `C o o H. 0 co P' P Xro H t~ n n m ro $ g F-' H. 0 0 C rt '-a• H• H. P e n a O H, F-, H w m o P' P Cow e a7`C 004 000 P P' O n d' H. O Hen I'd co C P P r+ a H 0 r t-, n O 0 H P rt P m H• 0 C0 cD H `C C w d C P P H, H. H. R, MOH P OM 0 o H o rt Ca 0 { P' P `C O rt n m a 0000. 000 `G H, to 0. H, 0 fi H• .'C, w 0 n n 0 C a .'T' 0 0 m co P 0 rt `-, P' (D H. rt 0 0 0 o 0 O w t'3 (D P ��, 0 m 0 n rt rt w o 0 P rr P rt a P `C P m 0 H H Z H. H, CD H n G" P H OPGq P cD c-fh+ p, r• H. rt W 0 w Cm w rr o . H $ { m P cD H. o H. P art rr ca 0 rrf m Z N H• rt p• < P P • P o m n H CD -Cs rf p w H• rn 0 hi O P P H~' p P 0 H rt m P o 0 Oct Ogg P l� P O r+ m CD rt H, 0 hi m O •m •v CD ft �' a H• n 0 P o O' P n rt CD { ~ t0 m M P' rf rt 0 ht) 0 r+ H { H LA m C rF. F-, CD CD O { rt rf p a n rt H• 0 H• H 1 N CD N H 0 P w co H cD P co P P' W a rt P m P o O P' n 0 p n n • P r• m H w hi ww F•-, n rt O. P 0 P' 'n rt • a H Co 0 r• P a F-' 0 0 0 H• H N rf m CZ 0 C p rtn o H. rf P P 0 C H. C 0 a 0 { 0 • rt P 'n- m a7 CD n H, rt m aq o o P P re N w n a CD S m n H, G H. p m m rt O a w 0 0 H m H, H H P 0 aq O a H 0 H' F-' rt t w P H w P N TS H w H• n m pp, rt n o rt pHp,, P w r• co (D G] CD oq CD CD H• C H, C 6 m 0 03 H F 0F{�, 0' o Pa 'p N m et H 0 H P P H• m 0 rt �P te--f o a m ggH o r@+ P H N 0 H 0 a u N a 0 H H H e rt a w n oq rt 0 k o rt o H' rt P H. a 0 P O' CD P' { rt CD H• H, rt H P w 0 rt P P m m p .• b rt C N O F-+ o a n H w w (D O C) n '• O (D rt rt a. rt rt H P `C m H. `C P r+ rf C l H n m rt H• It H• 0 a P P H. t-, H. P' H. m H. rt n P rt rtP" H• O ' O 0 rt 0 rt rt p CD c0 O CD n CD E • 0 O H P' 0 tn m a •,Sm rt (D rt P O rt o 0 O o H H. H H. rt m o et (D ,0 V P 0 a k co 0 rt (p 0 (D wrt P 0 H• P P ff, x (D pp, o cD rt P E H, C to fD rt P rt r n rt m P' 0 P rt PH p P H ^c rt o H H• ,.O HI Oct O H P' p O H. O H. H. H. o K y P H m H.,- rf 0 oq m M. H P' P H. r 0 P P H P w rt - rt. •h O rt p m a P r• rt m m CD . w rt C Drt H. 0.H, PPF 0 HH. P H w Hrt P P H• H. H P rF o m oq O' P' 0 rt k 0 H a`C 0 F- . H• CD m P H C' P a its 0 o F- ' C CD H, CD w P k '• Pa O Cm) O m 0 m P a ro P O H, oq 0 e F-, 0 CD 1-h 0 r.c O' rt ° •H 03 0 H• C Qq '-3 w o 0 0 H m 9 n o rt"OC m, o C' 'd rk+ o ff ° w o o � P. H P a n rf m 0 p' Fr n m H• o H, rf P H. 0 CD cD O H, 0 a H, ch H•1-+• H. 0 F-' o O rt H• H. CD H' P h+ hPh n w o w P. rt n H P rt Cc-'. N P' rror ' H W m H PP' D m D m P HOr+ r+ OHPaHmiH • P' r• CM) rt 0 Z 0 P' P m m 0 Crt O' w wrt t P' co(D H. mtn rt CD ON CD P H. H 1-1) CD a (D oq 0 m Pro Cil H. m H. rt o rt rt. O 0 k P et rt H. o a ' .'T H• P CD 0 CD P ' m m C H, O H CD CD P' 04/10 H H• n Z P H P" n P w w oq co O' . co aq 0 mo r+ H E P o m p ` 0 rf p o rt H. rr C + P�' tH P O P rt rt r f-h CD H n rf '• 0 C 0 rt H• P P C P H. O P (D O" H. 0 rt H (D P' In 0 P' O b 0 r+ r+ r+ H. P' ODM Cn rt'd rt H, rt k rC• p $ p H. 00 P P H a P' H O 0 rt P' H w O P CD P ` P 0 m 0" HO e rt H• H• P P HPow Cm P 4 Jrfn (o w n CD m CD P H. w c rtn o ff 0 0 { P rt CD x' n a ch • H. rt l-, P H. o 'LI p CD H O 00 H { 'ci PP.CD m P' w o n rt C m w • HP„ o m p m P H. n 0 m w 0 CD r' n H, 0 rf H. 0 8 CAI 0 H C rt H. CD C m O P. (D rt rt ,.o 0 n rt n bq 0 O rt H ro O 9 N D w P a m P P' a P 0 H. C P' k P 0 P o PD 1H P H. H. P • H' CD • rt a 0 o P rt H (D d-f P `G w Pq W m rOf p. • rmf °' k' H rf m P. rf rt H .7 E w C) H• Hy 0 - n n w H rt y H H +h w y to r• H n rt H• rt�e. H w H n rt 0 rF rt w y t Y n O rt trl CD rt. H 0" rt 0 0 0 0 0 0 CD 0 0' 0 0 w a 0 CD rh r+ 0 H 0 0 0 0' w 0' 0 O H H. 0' w 0 H. n 0 P) CD w pi H n z 0 n H) CD a n to �. 0 rt d w 0 0 H O' 0 CD CD r+ 0 w 0 co rt oa pq rt n H. p rt rt {u rt l--' 0 O' n r+ CD 0 by co o rt 0 r'T' H. O' n w 0 0 0 CD s`r.' n n H. CD C `< H w w co rt rt to 0 r H co H n k < CD to Co s' r• to CD rt n 0 0 H a H H a n Of 0 n 1-a to CD H 0 0 H. 0' to c w to CD 0 H. • CD H rt H. r• to H O n CD r+ rt 0 0 0 • H. 6 O O w rt X w H CD Z k 0 CD w Hh Cn nal < 0 H 0 rtto p H 0 H O w r+ < HI r+ r+ Hi x 0 C-I rt CD Z 5 0 CD r+ < H w 0I rr co n r• H. r• co H co '< fd w , rr I- n CJ 0 rr w CD CD `< `< H. 0 o CD o a 0 s a w s CD H r 0 H. w a H 11 co m 0 w 0 H IC-' w w ro 0 H 0 to r E' Cw'+ CD rt H Z N rt 0 CD to rt rt 0 k 0 0 • rt Ho O CD 0 0 0 CD - o OO 0 rt w `4 • M7 t-r F'h H• CD rt 'd rh O y H. H. O < 0 H. CD H. HI r+ r+ H. n CD s`d H o w w H rt 0 w rt rt 0 N• H 0' 0 0 H 0 B s w n w 0 0 0 rt W H H rt CD 0 Hrt ' rt 0 w 0 to 0 w "'T' H) n w r+ Cn C.t' rt 0 t0 0 OP a H 0 0 O y "H. OQ O H tO Z' 0 0 `< 0" s' 0 0' a w a to to v n CD r+ 0' H. w 00 p1 0 r• s P011 • v h' a •• O CD rt Haw 0 rt A> u o w n s CD H) w n 0 w w by rt r• 0 rt 0 P b9 rt 0 w 0 O H CD w t0 e 0 rt'd O n 'd 0 co rt to 0' w • CD CD O OP 0 rh a H n 0' CD H• s M H a w to n n V CD •.n w H H H• w �" CD P • w 0 H rt CD w w H 0 w 0 0 tit. Oct O w H 00 p r, n N• 0 rt CD H o w < rt rt. 0" IJ• 0 r+ 0 0 0 H. !b H 00 Hha`< CD CD w > 0 H• o r+ w n O' k rtw E 0• H CD 0 n 01 H It w art H r+ P H• CD H. h0 rt o .< rt M a OP o H. CD '0 O w w w MI • M 0' CD w w rt to n 0 to H. CD CD w P O' H• w H H H rt CD H 0 s' to rt n N rw+ 'd rt 0 h t H w 0" CD 0 • 0 H w H w CD CD CD w 0' N 0 to w 0 s' 0 0 w n H• CD H O rt H 0' w H 0 'd OP H H. to r+ a rr^d CD rt w to H. Co 9 rt y w rt w O H O o CD w 0 < 0 "C1 w H • w O s' 0 0 CD rt 0 to rt 0 H. a H 0' rt P 8 s s rh bG w a CD 0 C 0 0 0 rr w w H CD .'0" w 0.OP 0 0 0 0 H. CD 01y b H. s• CD rF w r• H 0 k It rt O' �' O 0 CD 0 H rt w 0 0 H H H 'd s n ",.S' CD CD W rt '• rO'+ 0 0 W 0 0 0 e w Fnj CD Ort H 0 n rt k H r• w Hrt 0 0 w CD S CD w H CD CD H. £ to w rt H).O H CD 0 0 0 w I.J. w W n O' t0 CD n rt w H r• s CD CD s 9 rt o r+ �', 0- 00 too w s s w rt • r3 rt CD r• V H H w H H. rF rt wo0 0" r• rt r• r+ w rt H` o< H O H .P 0 0 H w rt o 0' co0 n 0 s H• CD pp,,H H CD H w H. r• s' H 0 H• 0 0 rt 41 0 0 H H• w CD w rt 01 d w o H s 0 0 a H 0 rt 0 CD CD rt 0 toO0 n CD n Z O rt rt rt. CD to n r • H 0 �`< 0 w hd 0 y� a n a'd Co rF . 0 w • 0 0' a`< 0 0 0 w Ft H <-1- Y • w CD H CD 0 w CD H H n rt w 0 . H o H. rt H• H. w w rt H w n 0 H rh H w CD 0 0 0 rt N• n W CCDD o rt rt k O N w C 0 0 0 0 H. w rt H. w n rt rh rt < k 0 w s o a o n 9 9 H. CD w rt rt rt a 0 H ws a C w rt 0 `rt< H• H H. n Fr'h O CSD H 0 H to rt rt o to Ort" G Cwt CD H CD k a r• 0' CD 0000 rh 0 0 O rt to rt r• 0 0 rt POOH H O CD wrt rt Ck) h7 0 0 0 rtH w H to rt w r• H CDDDC w H w OP H 0 0 to •• H n b' co H H• 0 w 0 O w CD in h' Ow 'd rw'F w p H 0H'' x P O `art" a r+ 0 r+ w 0 H. .`r' rt w 0 H w w o rt rF rt rt w CD 'r[i . rh • OP 0C C cA w< rt CD hd s ' H. 011-1. H rt co o 0 co w w `r< `< a " n H CD H w 0 O • O H. O r+ o COD O H. 0 w y rF to H O'`< 0 H 0 H Q' O It O too w n H H• w G It Fh 0 H) CD rF 0 by Hh w H ca. 0" rw+ W W CD W CD CD P. 0 to w < 1-1 H. k O 0 rrt4• "r1 n 0 w Qq CD to o `< w rt H. WB H. rt CD 0 < • rt. `< 0 0' o 0 n h7 is P Ho H CD rt rt r H rt 5 rt o rt w w 0 0 CD w 0 0 0 0 rF H• CD O' 0 CD w w O H H CD CD m 0 m w P) w O w' N• o 0 0 H 04 OP s' w k 5 s w s rt co m g f(j)t) w n Cp (<D rCD 0 W 0 H H. n rt 0 w 14 H 0 rr+ to o CCD o P. a r+ It H. rt O P H N 0 O It Hop+,• .'7 a5) 0 Hrt• w G to y c+Oa < co m w 000 n w H m• H y w .Z.1 O ft HH• H. (+ 0000 (40 H. H• r+ N• o N S 00" O. ¢¢H11 0 w a On-. r HOH o trt in w a n `< ro -t O O 1 0 H r+ rt rh w a 0 ".1" w rh H. H r7 C rt r• `< a H• w 0 w s H.M r'7 w • w0H 00 'dO OOHrt 00' OOOrta 00 H. (ft rn+ 'xi r•'d o H H a pa It 0 w w w k GO 0' 0 9 0 It a-cis 0 7 CD n H 0 rh rh CD O 0 H < r+'d 0 rF C p 0 H• H n CD k H CO G r+ 0 0 CD H• w 0 H H G < rtV rt H o w 0 0 0' 0 It 0 P. rt • H 0 0 V NwH H HO rt H-' FH�h r0F„ 0 0 H• 0 Y 0' CD w P CD 0 H. H H. w0 rt rt w H to 0'h7 n w 0 0 w 0 co P r• 0 n << 0" w F{ CD rt H Cn w O w `0 'O rt H• rt O CD n 0 7 rh • O 0 rt 0 w 0- CD rt n E0 CD rt rt n O H n H 0 0' 0 H. w 0 H H•hd 'd CD ItOPO 0 0 H H H 0P w n n s' H. rt rtH w w w 0 rt to CD 0 0 0 CD r• H) 00 0Ew 0 H• 0w0' rtH 0' 0rt p G 1-< 0H0 000HH0 -Gs < H '+7 LA rt "O O r+ 0' CD `'�Hi rt H 0 0•' CD 0 w CD 0 0 H• S H t6 N 0 N 8 0 n n O G n `Y H. Mroj' n o r1) IH-' n "'T' w ts-r . r+rt m F+' o O o' 0 `< w .. OC1 a 0 H 366P. `,;>) O $ 0 0 H H) o' 0 00 rw•+ O N 0' 0' CD (n O .rtH' rt H rt CD rF w H. 0 0 n "O 0 CD 0 k rt w n CD H. n -e- o CD Fr w H $ CD rt w rt rt H art rt w to H H s w n 0 `0w Ft r• k CD CD w H• H `< 0 CC rt CD H. w H h' pH] It 0' o n Pi ff O `H< H a o rt'd H w n rt w 0 0 0 w n w.H• 0' 0 w 0 ft CD H H. P. O $ 0 n H. 0 H 0' CD 0 0' rt H• rt H. 0 0 O H w 0 O' 0 co H) H• rt CD - rt �^ n H w rh H• H n H 0 H. O p H O O r+ P- r+ H 0 0 H OP ' Oo1 0 H rt r• w rr 0 O w tp � co O 'O w � tto D N • X H-' e 0 0 w H w H CD w 1-1 w ' CD w a 0 H 0' 0 � rt 0 H w w a rt o et 0 P 0 < rt H C0D w H 0 H p 0 0 'd to OQ O O Hh w rt rt H• w rt O 0 0 %.< 0 ‘< 0" ate', a w O n w Co H H 0 O rt rt P O 0 >4 rt H C ' Hrt H rt 0 O0 o V 0 tO ... .' 0 0 CD H) 0 I 0 0 rt O CD H 0 P 0 0 0 n 00 0rt w • H 0 0 CT b 0 0 liiH It 0 1 0' O r+ H. 10 . rt rI 1 It I w H• H 0 0 H. cm I 0 H ta oq m s to n -• '`t� i or n 9 c7 w w w 'ayn H riG b yH. Z rt PO Pto . G 01 0 In fri m P rt Pn a NN oN H H H 1h in O OOwo H H� M �Dw - P 91W ca' HI NH ^n n p f+ d H. E tO n 8 rt < M y m An ry P it \i 0 0 co Y H HI G — Nt a r o rt ( \ nao a z� a. mw k I+) r aP K co aHri w Zn dP n cn •- n O G) rt rt O m H o' z: n w y H H. H. rt N rt H A to 0 N tn • ` (D HI n fn - N N Fn+Hi K '.,.. • C� d Oct o`C rt H 0 C.--: m CD p o re °° Es n cn1\ w n m m r— H K CD 0 r- aa Maa 0 N N In p ` n Hi t 0 H• —I P to oCD H 0 n S..`-- ' H noq H i ' \o S. n w 14 m Hn H. 0 .3 H H. ~ H M � 0 o `4 R. . S 0 0 rt ._ 0 .C.N. r m Iaa , tOCD g i, 0 0 O 00 00 0N. 01, N- H \ • •ri •ri 01 •ri • •rl CO •ri CO • h •ri 4-1 y .+1 V N U 0 V) I-, • V! CO 0 V) 1� • V) \ )0 V) )0 co co O >. V) ‘o 0. Le) 0 \ N C \ 0) 0 \ 1� C N U) C N M C re in I-- 0 H cd O \ 4) O'. in U tD "O O H c0 0 N- to 0 H 0) O H )O 4) 0) 4 U ) a ri 0 O X '%i.. r4 X 0 V) X O H X 0 (V X 0 H X 0 .0 X +1 HI bU+) V) N- O N 0 4-1 0 4) 0 1) 04-' O N 4) O C +) . 0 \ 4-1 I 4-) +) 4-) +) 4-) 4-1 V) }, 0 4) Fi 00 0 eN— £i 0 Lf\ Fi 4) V Fi 0 It) £.4 4-, N1 Fi 4) en £-4 i-) M Fi i) 1— F t\ - k cd en +) cd V) I` C U N et V) 1` <d U n at U 1� C V) n 0 V) \ 0 4) F-4 +) 0) X O +' 0'� 0 Cd \ +) ed \ 4-3 cd —. C \ 4-1 cd \ 4-3 Cd N C V) HI 0 Y V) _] L� V) o-I V) V) .7 H V) .-] d` co .a H CO .] N V) .-] H U , W 2 Cd kcd 0 •ri i-) M cd i-' 0 Z 0 0 +T) 0 4) n4 c- 4 i) Fi 4-1 44 co g ~ c o o .i i C k • H 44 Fi H k Fi Fi W tat.-I H C.) 4) H P.4 re 4) 4) O .0 q W 3 Pe O .0 3: 3 1 4-) Fi re al 00 H O cd -O 0 Hi at'0 F-I U 0 .1-1U k cd I; in U O o H 1 0 U v) •0 o O cd •.4 U Q 4-1 cd C C 4-) C) 44 -0 U .0 rC HI 0 .H 0 4-) C C .X C) rC O cd U E O C 4) U F-I n4 -P H 't3 Y i-' Fi C O C •rl E cd O 4+ g O 4) +) cd Y LP 4) 4) .ri ,O Y k U O C 0 cd 4) Y • 43 U +) • • U 4) ,� H 0 -r-t a) > k cd U > cd N In CO .. Cd 44 0 N • U L4 CO W 0xceU N0d Z w >• O) >-, >-' Z 0 ,0 0 Z H H P4 H Fi X P• 0 P. E0 0 U U N ri Fi > > P. U U• F0 Z Z > •r •. cd O kU. U U. U U £ U P. 0 0 0 0 O 0 0 0 0 }, 2 2 Z >• >• >, Nun' ru to +1 CC) 4-) N Y C) C4- U A 4- .0 0E-1 .a 4-' CO Cd CO U) CO - CO N U -0 4) 0 . Fi O •• Fi O •. Fi P if 1� Z •rI 4) 'Fi CO C O •n C O •n ci O •n o 0) O Y 'U I I -e- I 3 +1 "0 3 +) `C 3 4-1 •1:5 M H H 4-1 U C I I LO rd 1 000 000 O U at F' �crd+• 4) H N 4 I I ) I 0 cd C at C cd b0 't ,ci 0 Pi +) x c.-4n x Ik In d £i 0 r- n4 X 0 0 N i-) 0 +) 4-1 4) Hi T .a In Y C 44 0 0 4) C C Y C ci X X a at k O C0 O cd O O cd co 0 C4 0 Z U 3 Z U 3 2 U 3 Q U W U CO 4-) P4 W X. 4) 0 0 H UT U C -3.1• 4) t` -e-Y0) P. X O Y '0 C4 C O U N n O n U 0 r-I C 4) r-4 O i-) E H 0 0) ri 0 01 '13 0 Fi Cd P at 4-) co H co H O C 6'P: U re ,-I cd r i H cd H HI +1 b-I O"0 '0 C 4 4a • P C k >. O 0 k >, O 0 `0 0 U O U cd FL. O T£ 0 C U r-i C C U H C C 0 4) (1) •nC 1 Q CQ H C C O C C •r1 ,g O "CIO HiQ Q H )") Q Q H 3 M cd U nal LIN LC\ N N- --..._ \\Fi CO AHI O '0 H +) •ri O U cd en N in 0 0 O O) co CO in 4J - 0 P, re 0) en en N 7 H 'JD c0 - d CL +1 U) N H H H H H H H H H C •r-I 0 U H Cd ,--I H HI U 0 C C Fi H 0 U r-i U U C o cd Pi 0 cd H o 0 Fi 4) Y U U P, U cd Pi Pi o C U U 0 •.1 u) 0 U) U 0 Y 0 w cd k Ni 0 CO N 0. 0 0 Cd N •ice) a 0 o 0 X 0 -,NI X 0 ¢ 6 U 0 g UU -8 Ca 0 c cd at H U •r) X. Fi CD >. 0 4-) 0 0 O . '-d 0 CO0 a h P 124 CO to 0 IC rd U i-1 P O U H O U CO 0 0)0 N •ri U 0 Fc C Fi O 1 cd U 0 HI g � U E P. Y N W Q C .ri Fi C cd 0 ,07 +J) 9-4 4_s C ti b •,-4-J1 IX) LL. +1 U C 1C 0 H HC O W 0 0 'r.'- Q PC1 P. C7 CO 0 Q 00 DTY 8/7/75 HISTORICAL DATA OF CONSUMER PRICE INDEX COMPARED TO REFUSE RATES SINCE 1964 PAYMENT TO CON- CONSUMER PRICE INDEX ACCUMU- ACTUAL PAYMENT ACCUMU- TRACTOR WITHOUT ACCUMU- ('57-'59 = 100) LATED % TO CONTRACTOR . LATED % LABOR ADJUSTMENT LATED. % 5/64 108.0 $ .78 $ 11/64 109.9 1.8 .79 1.3 5/65 111.4 3.1 .81 3.8 11/65 112.6 4.3 .82 5.1 5/66 113.2 4.8 .82 5.1 11/66 114.2 5.7 .83 6.4 5/67 116.3 7.7 .85 9.0 11/67 116.9 8.2 .86 10.3 5/68 119.9 11.0 .89 14.1 11/68 120.9 11.9 .89 14.1 5/69 124.2 15.0 .93 19.2 11/69 126.9 17.5 .95 21.8 5/70 131.1 21.4 .99 26.9 11/70 133.8 23.9 1.01 29.5 5/71 138.9 28.6 1.05 34.6 11/71 * 141.1 30.6 1.21 55.1 1.06 35.9 5/72 * 142.7 32.1 1.27 62.8 1.08 38.5 11/72 142.6 32.0 1.29 65.4 1.10 41.0 5/73 * 149.8 38.7 1.36 74.4 1.13 44.9 11/73 157.1 45.5 1.39 78.2 1.16 48.7 5/74 * 165.3 53.1 1.51 93.6 1.24 59.0 11/74 174.8 61.9 1.58 102.6 1.31 67.9 5/75 184.5 70.8 1.68 115.4 1.41 80.8 TOTAL INCREASE 70.8% 115.4% 80.8% 11/75 193.5 1.75 Projected with normal consumer price index increase. 5/76 202.5 1.82 Includes consumer price index increase plus special labor request. 11/75 193.5 2.05 5/76 202.5 2.22 * Special labor rate adjustment August 1, 1971 $0.15 May 1, 1972 0.04 May 1, 1973 0.04 May 1, 1974 0.04 $0.27 Special labor request May 1, 1975 $ .30 May 1, 1976 .10 May 1, 1977 .10 $ .50 DATA SUBMITTED BY GREAT WESTERN RECLAMATION, INC. Attachment I Letter requesting rate increase. Attachment II Letter stating costs incurred during refuse strike and level of service to the City of Santa Ana. Attachment III Great Western' s total monthly cost for residential refuse collection if 16 new trucks were in use as of May 1975 . Attachment IV Refuse Collection Survey by Great Western Reclamation, Inc. CIT y \GA 1800 SO. GRAND • SANTA ANA, CALIFORNIA 92705 • (714) 558-7761 July 24 , 1975 Mr. Bruce Spragg City Manager 20 Civic Center Drive Santa Ana, California Dear Mr. Spagg, It is respectfully requested that Section 4 (a) of the Refuse Collection Service Contract between the City of Santa Ana and Great Western Reclamation, Inc. be ammended to provide that the following words and figures be added thereto: "In add- ition to the contract unit price plus any Cost of Living increases as provided in Section 4 (b) , the following amounts per active water meter per month shall be added on the dates indicated. May 1, 1975 $ . 30 May 1, 1976 $ . 10 May 1, 1977 $ . 10 Thank you for your consideration in this matter. Tours ruly„ r; /if v(/ .®. T. K. Blackman Great Western Reclamation, Inc. SOLID WASTE CONTROL � ethic s rm Op SAtrO% 1800 SO. GRAND • SANTA ANA, CALIFORNIA 92705 • (7141 558-7761 July 28 , 1975 Mr. Bruce Spragg City Manager City of Santa Ana, California Dear Bruce: The ability of Great Western Reclamation, Inc. , a subsidi- ary of SCA Services, Inc. , to provide almost uninterrupted rubbish service to the City of Santa Ana during the recent Orange County wide rubbish strike ig, in my opinion, very significant. While most other Orange County cities had almost no resi- dential service and only limited commercial service, Great Western was able to bring in supervisory personnel from other SCA companies to handle the equipment and supervise the inexperienced personnel hired. This was very expensive for Great Western Reclamation - costing approximately $47, 500 . The fact that Great Western was able to cover all routes in the City of Santa Ana, greatly increased the bargaining position in our negotiations with the Teamster' s Union. The original union demands were in excess of $5 . 00 per hour. We believe that the final driver' s scale of $4. 00 per hour the first year, $4. 25 the second year and $4. 50 the third year, to be a fair settlement. It is my understanding that the City of Santa Ana pays a laborer a higher hourly scale. As a further comparison, the City of Newport Beach handles their own residential rubbish. Their driver scale was $5. 28 per hour while SOLID WASTE CONTROL Mr. Bruce Spragi Page 2 Great Western was paying $3 . 28 per hour. The new wage rate is still $1. 28 less than now being paid by Newport Beach. I believe that the above information is pertinent to our increase request and merits your consideration. �ry . Jy ours, TO I jr//, T. K. Blackman Secretary TKB/mew II C WESTERN RECLAMATION, I. RESIDENTIAL July, 1975 No. Water Meters = 39, 364 Expenses Total Total Based on 16 Residential Per Per= Trucks Month Meter Truck Lease Payments @$912 . 96 $14, 607 $0. 371 License Fees & Highway Use Tax 1, 962 . 050 Fuel, Oil, Tires & Tubes 7 , 596 . 193 Truck Repairs & Maintenance (Includes Shop Labor) 9 , 037 . 230 Lease Fees - Service Vehicles and Autos 600 . 015 Labor - Direct 24, 321 Fringe Benefits 7 ,150 31, 471 . 799 - Supervisory, G & A 7 , 555 Fringe Benefits 1, 435 8 , 990 . 228 Property Expenses 4, 148 . 121 (Includes Depr. , Taxes, Utilities, Interest *) * Property Book Value = 840, 319 @ 10% Int. per yr. 84, 032 Monthly Allocation to Residential = 2 , 661 Insurance - Truck & Liability 1, 120 . 028 Performance Bond 125 . 003 Franchise Fee 2, 667 . 068 Miscellaneous Expenses (Includes Property Damage) 1, 350 . 034 TOTALS PER MONTH $84 , 273 $2. 140 1 fta 0 N N rq i rtrn x o N N n N o o a V CD u ry� W LCi. C H 0 ~ N (D m (D rt 0 rt N Co (CDl 9- 0. 5n "m" o n 0 C. o � w @n m m c� R q ro w �m 0 a `� o, ((map ("cp' `� °' 0 N 0 x a �' 0 � ) '06 E4• R+ 9 N y N �C l7 Y�. d' C7 ri i] A N. F,. C} pm$1 rn m 51) -' n m r0 H• '(J� 't O Cl to �� w N o we w c c Coc k w Qp LI o p R' W rt 9 0-. 2 O u. o •rt -u} o 5 to 0 o fi • nr�,� P• 8- �] (per N N F-� N H N N N ¢, H'VI 0. h' C� 00 N Imo-' 1�J1 UJ'1 0 O W 0 II 0 01 n rtN W pi fin �ttF n gg J O NN U Pi b. m 0 m to m CO P- DP N ft Le H.• o N ( O 4 to �l Fi G1 F7 it t rt D y N rt :T mco rt m m . 0 ON w tiit td it frd (11 H coIt it Fd n rt N 2 5' o c 9 CD �" on o N N n N• m rt 0 rt 'D rt rt rt 11 co 9 hila (-1- Pi0 I' il ' Ui 'C 1 -i o 5. 2, kR' R8 � R. 9 5 DmB �° °tnrG ' o M� 0 ° W 0 M O rt 0 aaoO H (09 agl mffiw o ..0 giiH. K wnia � No � rt En w (DP ID i-Q Ew4n ' ter N 0RR 0 La W 11 5 H- (D 0 Q rt0 w � xo8 � a . e 4 H-1 8 ago a rn "�pp'0 1110 w 61Hi (rr(ppt}� in �^, li w i1 `.s• Ul lD r1 (Z 0 8 N w N CD N ( N N sFC�-�J]1�� H-O CD N In tr rNwwwrhr b' W C] H 01 H 2w 4 0 z 8 �� R H 0 0 t8 w N N n n G w • nod HI 5 CD q° 54 ¢ 5 Pa- ° ' rt X88 m N a ° w 4 4S H- P) c o. H ~ Hi 0 ° 8 ° w ax a E H. a m I g o f o 0 t:1 co HI LP CC trJ 44, 0 M N • fD p., cD �} Ni m � m •o 8 P° F • MEMORANDUM tvtik To: _ City Manager Illllllililllllll� Da}e August 1, 1975 From: Management Analyst „ � Subject: RATE ADJUSTMENT FOR REFUSE COLLECTION Background The City' s refuse is collected by Great Western Reclamation, Inc. , which has the exclusive right to provide service within Santa Ana. The City Council has established the principle of keeping refuse collection activity on a self-supporting basis at the time that refuse collection expense was placed on a bill system and deleted from the property tax. To keep this program on a self-supporting basis, the City Council will, of necessity, have to pass a resolution adjusting the refuse rate paid by the homeowner to the City. October 1 , 1974 , was the last rate adjustment from $1. 50 to $1. 80 per month per single family residence. Prior refuse rate adjustments were established September 1, 1973 , at $1. 50 per month and January 1, 1972 , at $1. 30 per month. The refuse contract provides for a rate increase or decrease based on the Consumer Price Index. Payments to the contractor are adjusted with changes in the Consumer Price Index on May and in November of each year. It is estimated that payments to the contractor will rise from $1. 68 per water meter per month to approximately $1. 83 during fiscal year 1975-76. As of November 1, 1975 , the refuse contractor will be paid $1. 75 for each active water meter in Santa Ana in accordance with the contract. For the fiscal year 1975-76 , it is projected that the refuse contractor will be paid an estimated total of $831 ,000 . Other related costs of departmental inspection, clerical help, office supplies, and equipment rental will cost approximately $19 ,525. This does not include the pro-rated costs of mailing and data processing of refuse bills since these charges are printed on the water bill and mailed with the water bill; therefore, no duplication of postage is required. The total cost for the fiscal year 1975-76 to the City for refuse collection is estimated at $850 ,525 . A refuse rate increase will be required at this time effective October 1, 1975; to keep this program on a self-supporting basis . The increased cost from fiscal year 1974-75 to fiscal year 1975-76 is estimated at $90 , 465 or 11. 9% increase. Of the $90,465 increase, the refuse contractor will receive $87, 000 increase or 96. 2% of the total increase as required by the contract agreement as a result of anticipated Consumer Price Index increases. Financial Analysis To balance the current fiscal year budgeted revenue and expenditures, a rate increase of 11% will be necessary to put the program on a self- supporting basis for the fiscal year 1975-76. Without an increase in the current refuse collection rate, the program will incur a deficit of approximately $90,465 by the end of the fiscal year. An increase effective October 1, 1975, will produce increased revenues for only a nine-month period since three months of the fiscal year will have elapsed prior to the first billing and receipt of revenues. The rate City Manager -2- August 1, 1975 increase of $0. 20 per month for nine months will increase revenues by $90 , 000 to balance the refuse budget for fiscal year 1975-76. The increase in the monthly rate will be $0 . 20 from $1. 80 to $2. 00 billed every two months for a total of $4. 00 per single family residence. This is approximately 11% . Proposed Rates In addition to the proposed rate for single family homes, corresponding increases in duplex, triplex, and other multi-family units are recommended to equitably distribute the cost to all users. Present and proposed rates for single family, duplex, and triplex dwellings are shown in the following tabulation: Present Proposed Proposed Type of Unit Monthly Rate Monthly Rate Increase per Month Amount Percentage Single Family $1. 80 $2 . 00 $0 . 20 11% Duplex $2. 95 $3 . 30 $0 . 35 12% Triplex $4 .10 $4 . 50 $0. 40 10% Multi-residential buildings are required to utilize refuse container rental service from the City 's refuse collection contractor where such buildings consist of four or more dwelling units and space is available for the placement of such containers . If containerized service is used, then the City exempts the user from paying the residential refuse collec- tion fee. In the event no space is available, waivers may be granted and refuse may be placed in regular 35-gallon cans for pickup. The City bills for this latter service and the present and proposed rates are shown in the following tabulation: Type Present Proposed Proposed Of Building Monthly Rate Monthly Rate Increase per Month Amount Percentage 4 Units $5. 48 $6 . 00 $0. 52 10% 5 Units $6. 85 $7 . 50 $0. 65 10% 6 Units $8. 22 $9. 00 $0. 78 10% 7 Units $9 . 59 $10 . 50 $0. 91 10% 8 Units $10 . 96 $12. 00 $1. 04 10% This averages $1. 50 per dwelling unit per month for all residential structures of three units or more. This is a lesser unit rate than the single family rate because a single stop can provide service for clustered dwellings on a more economical unit cost basis than the more , City Manager -3- August 1, 1975 widely separated single family neighborhoods . Similarly, the average monthly unit cost for a duplex is $1 . 65. These increases in refuse rates do not include any payments to cover the contractor' s increased labor costs granted through an agreement with the union on June 5 , 1975. In the last five years, the City 's payment to the refuse contractor has increased from $0 . 99 as of May, 1970 , to $1. 75 as of November, 1975, which is approximately 77% . Actual Charge to Payment to Single Family Contractor Accumulated % Homeowner May 1970 $0. 99 -- $1. 00 Nov. 1970 1. 01 2 . 0 1. 00 May 1971 1. 05 6 .1 1. 10 Nov. 1971 1. 21 22 . 2 1. 10 May 1972 1. 27 28 . 3 1.30 Nov. 1972 1. 29 30 . 3 1. 30 May 1973 1. 36 37 . 4 1. 30 Nov. 1973 1. 39 40 . 4 1. 50 May 1974 1. 51 52 . 5 1. 50 Nov. 1974 1 . 58 59 . 6 1. 80 May 1975 1. 68 69 . 7 1. 80 Nov. 1975 (Est. ) 1. 75 76 . 8 2. 00 *Special labor rate adjustment - August 1, 1971 $0. 15 May 1, 1972 0. 04 May 1 ,1973 0. 04 May 1 , 1974 0. 04 $0 . 27 Comparison with Other Cities The following tabulation shows fees charged by other agencies in this area for a single family home as of August 1, 1975. The City of Huntington Beach does not bill its residents for refuse collection, but pays this cost from general fund monies. The Cities of Garden Grove and Costa Mesa charge for refuse collection on the property tax bill. In Costa Mesa, a single family resident is charged $26 . 00 per year or $2. 17 per month for refuse collection. In Garden Grove, a single family resident is charged $0. 18 per $100 . 00 assessed valuation for refuse collection and sewage disposal . No estimated cost available for Garden Grove. Rate Per Month Costa Mesa $2. 17 Santa Ana (proposed) 2. 00 Buena Park 1. 85 Santa Ana (existing) 1. 80 Anaheim 1. 75 Orange 1. 50 Fullerton 1. 50 City Manager -4- August 1, 1975 Recommendation: It is recommended that the City Council place this matter on the agenda for hearing on August 18 , 1975. This hearing would be to consider a resolution establishing a revised schedule of rates for refuse collection to be effective October 1, 1975 , providing for an increase of 11% over current rates. This would increase the monthly refuse rate by $0. 20 per month for a single family home. Cati ti D-nnis T. Ya a Management Aalyst Concur with Financial Analysis and Recommended Increases : Gand,e1 Larry M. ltffer Ronald E. Wolfo Director of Finance Director of Pub is Works Approved and Recommended for Council Action: �? ACTION OF CQUN, J C'uce C. Spragg City Manager i ' 7 (L CLERK OF THE COUNCIL NOTICE OF PUBLIC HEARING BEFORE THE CITY COUNCIL SANTA ANA, CALIFORNIA NOTICE IS HEREBY GIVEN that the City Council of Santa Ana will hold a public hearing to consider proposed increases in the rates for the collection and disposal of refuse, all to be effective October 1 , 1975. All persons interested are hereby notified to appear before the Santa Ana City Council for hearing on the matter, Tuesday, September 2 , 1975, at 7 : 30 p .m. , or as soon thereafter as possible, in the City Council Chambers , 22 Civic Center Plaza, Santa. Ana, California, FLORENCE I . MALONE CLERK OF THE COUNCIL Publish: The Register August 22 , 1975 Affidavit £; Proof 3 Invoices