Green is the new color for trash
Without providing consultants Sloan Vazquez’s detailed timelines, related to our RFP for the collection of our trash, recyclables and green waste, let me simply provide coverage of the May 17th Mission Viejo city council meeting in which this single item was discussed for almost five hours.
The consultant team presented their overview of each of the four vendors going after the brass ring that is worth close to $100 million dollars. In their opening remarks Joe Sloan said that all four bidders are good companies and have provided good proposals. That’s a key point as we listen to Carisa McAfee, the Waste Management spokesperson, go on the attack of CR&R including someone following CR&R truck(s) in the city of Orange and taking photos as they picked up the trash.
Most of the time spent on this item last night focused on the low bidder CR&R. As such much of this post covers the exchanges and attacks by W/M the highest bidder.
We covered the gamut from households per day, routes, estimated labor rates, benefits and pensions where union labor was estimated at $19.30 to $19.70 per hour as compared to non-union workers earning around $2 less.
The council and the vendors spent perhaps an hour just on the topic of how many trucks would be required to honestly service the city. CR&R, the lowest bidder, contends that they can get the job done safely and within the city’s hours of operation with 13 trucks while the other three bidders and Sloan Vazquez feel it will take 16 trucks. A considerable amount of time was devoted to comparing MV Vs. the city of Orange where we have 29,651 households and they have 29,751. To support getting the job done with fewer trucks we heard that CR& R’s trucks have the largest capacity at 12.5 tons while Waste Management trucks are only 10 ton capacity.
Joe Sloan spoke of risks based on CR&R’s overestimating the annual revenue from our recycling by $820,000 and the operating cost if they had to add three trucks which would increase the CR&R bid.
While I have no issue with Mr. Sloan’s integrity, I simply have to question why he is so supportive of the highest bidder after his opening positive remarks about all four potential vendors.
In his presentation CR&R’s representative told the council that accusations by W/M that his trucks were zigzagging was “totally outrageous.” We only pick up on one side of the truck. This was in reference to a photo provided by W/M to the council showing a CR&R truck near a school bus.
He also refuted future rate increase requests saying that “we haven’t asked for a price adjustment in our 40 year history.” Note: He did say that there were reasons for Tustin and RSM but we did not get into that topic.
As to allegations of low balling the bid to get the business he told us that the MV proposal is within 30 cents of Orange and $1.25 of RSM.
In fact he stated that our city attorney can write the contract and take risk out of the picture suggesting that the city increase the performance Bond. He added that we should ask for a security deposit as the city has $100,000 now saying “keep it for 10 years.” CR&R claims to have 43 exclusive franchises in southern CA.
Mayor Pro Tem Dave Leckness made some excellent points as he questioned Waste Management. Paraphrased. “You are the largest vendor in the world. Why are you the highest price?
You’re the only one requesting exceptions. One could be a deal killer.”
He later states that “I have an issue with Waste Management. I think the price is too high.”
Sometimes we can put foot in mouth. The W/M representative Carisa spent much of her time addressing the council by attacking CR&R. She did make a point of bringing a box of cards from our residents indicating our satisfaction with their service. She also provided an album containing some of these cards. However, later in the evening Cathy Schlicht asked when the cards were sent out and returned. We were told that this was in the first two weeks of March, prior to our learning of Waste Management’s being 25 percent higher than CR&R. Perhaps they should send out another group of cards with all four bids and ask if we feel we would still prefer W/M knowing that over 10 years the cost would be $17 million higher.
Jason Ware of Ware Disposal reminded the city of their processing our C&D over the past few years and would like to continue providing that service. We learned that they have four residential franchises.
Athens spokesman Brett Barbre, former assistant to John Moorlach in the Treasurer’s office, tried to overcome their distance from Mission Viejo which was a detriment. He said they could find a local area for storing their trucks overnight rather than driving them down from Huntington Beach every day.
The CEO of Athens said it was odd to him that Sloan is recommending the highest bidder while his non-union firm is 10 percent lower.
As this discussion was dragging on Frank Ury said bids are in place. “It’s now time for that gut check.” Over the past few weeks we have received unsolicited phone calls.
He made the Motion to continue this item until the June 7th meeting. Dave Leckness provided the second. Frank went on to say “we’re in the eye of the storm.”
John Paul said he prefers the process and objected to stopping the exparte rules (gag order relating to communication). He told the council that Athens and Waste Management are his best choices and does not support any continuation. At the end of the discussion the Motion passed by a 5-0 vote.
Frank then made another Motion to eliminate the exparte rules and enable the council to interact directly with the vendors. Again Dave provided a second to the Motion. Joe Sloan said there are some definite dangers in meeting with potential vendors.
John Paul argued that nothing is going to change in the next two weeks. “Does he said, she said matter.”
Frank’s Motion passed by a 3-2 split vote with Trish and John Paul voting NO.
A compromise was reached in that council members will meet in the city hall and tape record all discussions. The last Motion was passed unanimously 5-0.
And let me close by reporting John Paul Ledesma calling up David Ross of Waste Management to give him a gift. An old pencil sharpener.
Sorry this report is somewhat choppy. Bear in mind it was a test to watch five hours of give and take only to wrap up without any decision being taken.
Personally, I prefer that the council can now look the vendors in the eye and ask questions directly rather than through the Sloan Vazquez filter, especially after seeing their report and recommendation that is cast in stone.
Frank Ury said we hired the consultants to make a recommendation, not to make the decision. I totally agree.
I happened to catch most of the council meeting. Trish Kelly started out asking / directing that the council save paper by printing less copies of agenda material. Then, during the trash contract, she blindly and without any real deliberation, signaled her support for a trash contract that is $17 million too much. What is wrong with the electorate of our community in returning these limited minds to office.
The only guy that seemed remotely interested in the details is Councilman Frank Ury. Termed out councilman John Paul Ledesma seems glad to give the MV residents his going away present of higher rubbish removal rates. It is fortunate that the council is actually a ceremonial post or this city would not function at all.
Then there was that bald headed consultant — what a joke. He recommends that the city spend $17 more — so the council blindly follows. What is his stake in this besides a check from the city and a kick back from Waste Management sometime later.
God bless the current system of local government that survives among apathy. We get what we vote for.