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CC - 04-29-91 - Adjourned Meeting• APPROVED CITY OF ROSEDIEAD MINUTES OF AN ADJOURNED MEETING DATE (a ROSEMEAD CITY COUNCIL APRIL 29, 1991 RI' The Adjourned Meeting of the Rosemead City Council was called to order by Mayor Imperial at 7:10 p.m. in the Council Chambers of City Hall, 8838 E. Valley Boulevard, Rosemead, California. The Pledge to the Flag was led by Councilman Bruesch. The Invocation was delivered by Councilman Taylor. ROLL CALL OF OFFICERS: Present: Councilmen Bruesch, McDonald, Taylor, Mayor Pro Tem Clark, and Mayor Imperial Absent: None I. DISCUSSION OF TRASH PROPOSALS VERBATIM DIALOGUE FOLLOWS: FRANK G. TRIPEPI, CITY MANAGER: Mr. Mayor, and members of the Council, as each of you know, the purpose of the meeting tonight is to do some further discussion on the trash franchise proposals that the City has received. I would call to your attention the fact that the staff this evening delivered revised spread 'sheets to you. We apologize, we had two mathematical errors on your original spread sheets that were delivered on Friday and in addition to the revised spread sheets we also provided you with any and all or additional information that has been received from 'the franchise proposers. As you know, Consolidated provided you with a rather detailed letter of explanation as to how they computed their franchise fee at two percent and if,in fact, we are to back out the franchise fees, what actual figure should be backed out. Athens has provided us with a very detailed summary which is a comparison, I believe, of all the at least the four proposals that you are considering this evening. You have received a package, and we delivered it to you, from Zakaroff, indicating that they wish to be considered this evening. Their initial request was to be placed on the agenda, at which time, Mr. Mayor, your decision was not to have them on the agenda, but they could fill outa request to speak form, which I believe they have done this evening. I believe that's it at this point. McDONALD: Mr. Mayor, it would be my suggestion at this time to make a motion to listen to Zakaroff's submittal information before we get into the discussion. IMPERIAL: Okay, we have three requests to speak and one of them is Zakaroff's.... they will speak. Do you feel they should speak before the other two? McDONALD: No, that would be fine. It said discussion of the trash proposals and then you're going to have input after that. I thought get input out there first. IMPERIAL: First request to speak, we'll take Juan Nunez. JUAN NUNEZ: Juan Nunez, 2702 Del Mar. I would like to ask from the proponents of the franchise if the other night I asked some questions of the Council once the proponents had already left, I don't think the Council could have answered. Are the fees determined by the amount of recyclables that are going to be picked up? IMPERIAL: Why don't you ask your question to me, Mr. Nunez. You're here as an observer and I understand that you have a right to speak. NUNEZ: Yes. IMPERIAL: And you should be addressing us, and not the applicant. ADJ CC 4-29-91 Page #1 NUNEZ: Could you answer that question? IMPERIAL: You can address me and I'll turn it over to whoever can answer the question. NUNEZ: Okay, is that how they determine their fees? IMPERIAL: By what, Mr. Nunez? NUNEZ: By the amount of recyclables that are going to be picked up? IMPERIAL: I don't think that has anything to do with it. McDONALD: Juan, we allowed them, all right, to give us a charge for recyclable program in the City. The Council at the last meeting said, and I state it, we want to get out of the trash business, 1) to roll any fees that you are going to share with the City and profit-wise to put back into the rate so yes, in each of these contracts there is a certain amount of money, okay, that they get from recyclables that will go back in and reduce the rate and there is also a charge for the recycling program itself. Okay? Based on their figures and everything they have, so added it, without showing it, others show it, a separate price for recycling. What they get on recycling that they were going to share profits with the City we asked them to put that into reducing the rate of the individual owner. NUNEZ: Okay, since we are paying a higher fee now, I don't mind the dollar and some cents I believe it was that we are going to pay, is this for the five year term of the contract? McDONALD: No... NUNEZ: Or the second year, will add another two dollars, three or McDONALD: Each of the companies has given us a formula how they are going to change their rates over a five year period of time. Some chose using the CPI Formula plus what the dump fees are going that they have no control over. So those things are in their particular contract. Some have go ahead Mr. Mayor. CLARK: I think Juan's question was, if we're paying, say $1.30 for the recycling this year, will we pay it next year? And the answer is yes. It's built into the McDONALD: No, no, he's saying is that CLARK: Well, what are you asking? McDONALD: There will be an increase for the standard of living every year and certain costs go into... BRUESCH: No, I'm sorry, I disagree, our spread sheets says right across the board, $1.35 for Athens for five years,... McDONALD: I see what you mean, okay, it's gonna count it that way. CLARK: But Juan, are you asking for the recycling fee or for the regular fee. NUNEZ: No, no, I'm asking for the fees, how do they determine their fees, is it by the amount of recycling that they will collect? IMPERIAL: They are in this listing, Juan, that was submitted, that's already in the listing. We're looking at the end result, that's what we're looking at, some have them in, some did not have them in before. That's where all the confusion came in. NUNEZ: Okay, you got that, I haven't. Because I know, there is some people that may go around and will pick up some of that recycling, in fact I would ask you.... draft a resolution against ...Messera is trying to propose a bill that will fine people that are scavengers according to him. ADJ CC 4-29-91 Page #2 • • IMPERIAL: Well Juan, first of all we'll get a trash contractor and after that we're going to realize we do have people going around as scavengers in these trash cans. I see them on my street too. We need to take one step at the time. We will take care of that. Is that your point? NUNEZ: Well, my point is that these people have been doing a great service to the industry, to the environment, before anybody ever got into the bandwagon, they have been collecting on the recycling, they're only recycling paper, bottles and aluminum cans. What happened to tin cans, plastic, and some of the other recyclables IMPERIAL: I know two people in the business, Juan, have been making a pretty good living off it, they don't have a steady job, they do that, they are scavengers, okay, we NUNEZ: Okay IMPERIAL: We need to take care of that, once we have a contract, because we cannot tolerate that, if that',s going into their bill, into the cost, we cannot tolerate people going around digging in the trash cans. That's another point. We need to go on with this contract. Have you made your point? NUNEZ: But I think I don't think it's another point. The point should be resolved now because as I say, those people have been providing a service, even before, like I say, anybody ever got into the point of picking up cardboard. IMPERIAL: Okay Juan, your point is well taken and we need to get on with this meeting and I can talk to you about that. We will resolve it, you got a promise, allright? Now, people come around painting my house too, I pay them for it, they provided a service and they were paid, so are these people, we will get into that later, this is not the time for that. I'll make sure you have an answer, okay? NUNEZ: What I'm trying to ask also is the people that are gonna be picking up the trash do not get those recyclables and then our fees are gonna go up because of that. IMPERIAL: That's why I said we'll take care of it. We're going to come out with a scavenger law if that's necessary, which I think it is, and that will take care of it. If they're caught scavenging, they'll have a fine to pay. NUNEZ: But I think, like you said, people are making a living out of that and IMPERIAL: Absolutely, there is no doubt in my mind and we need to take care of that, we know that. But first we need a contract. Thank you for your input. Joe Vasquez? VASQUEZ: Joe Vasquez, 3633 Marybeth Avenue. Thank you very much for allowing me to speak before Zakaroff. I'm here to speak as a concerned citizen in regards to the contract that's coming up. I like to ask the City Council not to rush into it. I know the contract is over in June, but also what I understand, and what I saw Tuesday night, it seemed to mean a lot of the confusion. I'would like to see the Council open up the bids to allow Zakaroff to again make an intelligent bid and also there's other disposals out there such as AK Disposal that would also like to make a bid. Because in the next five years, it's quite a bit of responsibility for all of you to make, and again, I urge you to take your time and re-open the bids, and I understand that, I hope that you'll discuss it and listen to a concerned citizen. Thank you. IMPERIAL: Thank you for your input. VASQUEZ: Any questions? IMPERIAL: I have none, Mr. Vasquez. Mr. Newman? ADJ CC 4-29-91 Page #3 • • ZAKAROFF: Jerry Newman, 1800 Avenue of the Stars, #300, Los Angeles, CA 90067. I'm here representing Zakaroff Recycling Services. The reason I'm here tonight is that my client and myself have a concern that the City may be moving towards offering a contract that does not provide the least cost, least rate, to their citizens, to their residents. While we commend the City in its efforts to provide an RFP that gathers as much information as possible, what we feel has happened is that the RFP failed to ask the most pertinent question before a number of the bids were set aside. And that pertinent question is, what is the least cost you will provide your service to our residents. That question was only asked after five people were excluded from the bidding process and some changes had been made, some fees had been backed out, and we feel that, had that question been asked beforehand, my client would have been in a position to assure you that they could have provided the least cost service for the City. The reason that they can make such assurance is, and that's kind of been verified to you in a package that my client has sent to you. As a matter of fact, not only was that verified in the packages they sent to you, but my client has provided a number of guarantees which I don't think any of the other providers have provided. First guarantee was that they would keep their prices frozen for two years. There would be no increase in year two. And that the minor adjustments would only commence on year three. This, no matter under any scenario that you have been presented with, even with the new spreadsheet that you got tonight, shows that throughout the process by year five, year two, year three, pick any year you want, our prices stay competitive, and they stay low. The other guarantee is that the dumping and tipping fees will be passed through on an actual determination basis. There will be no profits derived, there will be no increases to what has been charged and beyond that, they will tie the tipping fees to the County rate. They will not charge any increase rates by having to go to another facility, such as zoned by BKK, they will keep them at a rate commiserate with that of the County. The third is that they guarantee you a reduced CPI rate, not the standard CPR of 5%, they are saying that they will back out a percentage or two percentage points and then they'll allow increases from there, but never.... in effect they will guarantee the City always, and the City residents always have a reduction in the CPI that is established for the contract. They have also guaranteed service to a material recovery facility, or a MRF and they have guaranteed to supply the initial recycling bins to all city residents, not just a few of them, not only 8,000, not only 11,000, whatever city residents there are that will receive them, they will give them the initial bins free of cost and establish a 10% surplus and will provide, and will go to a shared cost for replacement. All in all, what my client is asking for is a fair opportunity to stand on equal footing with the other bidders in the process. The reason they can offer the guarantees that I just discussed before is my client is the only operator who owns and operates its own MRF (Material Recovery Facility). This allows them to keep the rates of tipping fees down because if the County facility is closed, rather than going to the BKK lot, they can return the materials to their Material Recovery Facility and tip and dump there, and only charge the rates to the City that they established for themselves as the owner/operator, which allows them to guarantee you reduced rates. My client, through that process, is also able to control its operating expense budget, to keep it to keeping the tipping fees to 25% of operating cost. This means that, as increases happen, as the CPI increases, what is happening is that rather than going to a 35% or a 30% of their operating cost, they can keep it at the 25% level, so that they are only applying the increase in tipping fees to that certain percentage rate. If I get a little technical, I'll be more than happy to answer any questions you have, and the owner and operator is here of the operation are here to answer your questions as well. My.final point is CPI. As I intimated before, what we are talking about in our CPI calculations is a reduced CPI rate. My clients have guaranteed to you that they will not only be the least cost today, but also tomorrow. It's very easy and the most common game that's played, is we will save you money today, but we will make up for it tomorrow. By having a CPI increase rate which is at a ...on a bell curve would go up very high as opposed to a kind of ADJ CC 4-29-91 Page #4 ZAKAROFF CONTINUES: slow gradual increase rate. What my client has said is by their formula they will guarantee that any increases will be done at a slow, gradual pace. And therefore they will not be getting money at the back end to pay for the savings you did on the front end. My final request is that as a citizen said before me, please take the opportunity, take this chance to review everything very carefully, and allow us to meet with your staff to show them how we can save your citizens the greatest amount in these fees, so that we can save your citizens not only today, but tomorrow. Thank you very much. If you have any questions, I'll be more than happy to answer them. McDONALD: Mr. Newman. Explain again how you can you save the City so much money in not having to dump other than Puente Hills. You say you go back to you to your MRF... ZAKAROFF: The way it works is, in Puente Hills I think the charges are $14.55 while BKK lot is at $28 or... McDONALD: I realize that. ZAKAROFF: What would happen is, as we collect... County closes at 1:00 p.m. If you miss that deadline and you have your trucks out there, where are you going to take the trash? Well, many of the operators will go to the BKK lot and have to pay the additional cost of tipping fees. What we're saying what we would do is, we have this MRF that is less than ten miles from the City. We can transfer those trucks, instead of sending them to BKK, we can send them to the MRF, they will tip there, they will be divided out, the recycling will be done there, and that's the only tipping fee that you.pay, is the tipping fee for that MRF. The additional stuff that is extracted, when it goes back in, say 70% is taken out and recycled... 30% is taken out & recycled, the 70% that goes back that will have to be taken to a dump the next day, will not be paid for by the City. McDONALD: Excuse me Jerry. You mean that trash that is actually going to the Puente Hills has recyclable stuff on it, has been recycled already, it hasn't... ZAKAROFF: There is a percentage of it...about 10% of your recyclable material is from curb-side. The rest of it, as you go through your recycling operation, and this is where the city is really going to run into its problem, every city, we have this looming cloud over our heads of compliance with 939, but what's happening is, in order to meet that percentage rate, you have to get into the process and extract material from the trash, not just depend on the 10% or the percentage of curb-side recycling. McDONALD: Okay now, you explained though that this particular truck was going to dump in Puente Hills. Okay? ZAKAROFF: Correct. McDONALD: They don't do any recycling there? Do they? Don't they just dump trash there? ZAKAROFF: Yes. That is correct. McDONALD: If it's closed at that time, then you say you're taking the truck over to your facility, dumping it and recycling it. ZAKAROFF: That's where we will be able to extract recyclable material from that... McDONALD: For us to meet our percentages standard, we are going to have to make sure the stuff that's going into Puente Hills is already... okay? ZAKAROFF: Well, that's true. ADJ CC 4-29-91 Page #5 MCDONALD: Less of that amount. ZAKAROFF: It's more than that. This is a very complex process. McDONALD: Wait, wait, this is a very simple process you're telling us about. First of all you have a truck that has already had its curb side recycling done, because you said it's only 10% which you were going to... if Puente Hills was open, you were going to dump that truck in Puente Hills. ZAKAROFF: That would be the most logical place, yes. McDONALD: Puente Hills now is closed, you're going over to your MRF facility, dumping the trash there, taking out recyclables, which ...we need that done before it goes to Puente Hills. How is it done normally before it goes to Puente Hills, if we are gonna meet 50% in 2000? ZAKAROFF: What I'm saying to you is that the process, and when I say that it's complex there is a number of components that go into it. McDONALD: I think we have your owner gonna come down here to do some explanation. ZAKAROFF: (no name stated) There is a number of components that go into it. You establish a recycling program that will add...that will go to commercial as well as residential. BRUESCH?: That is not what a material recovery facility is. A material recovery facility is a front end recycling program where all municipal waste is dumped and recycled through the process. McDONALD: Okay, we may have made a mistake there. ZAKAROFF: The added benefit that we have is that we already have various programs in effect, especially in the commercial sector, so we can enhance the 939 requirements with a great deal of the commercial refuse that will be going to a landfill. McDONALD: So, normally you think through the green waste, curb side recycling of the co-mingles that we're giving you, you could almost make that percentage plus the commercial on there will give us a percentage where you don't have to take ordinary household trash and separate that. ZAKAROFF: We can enhance, we can enhance your AB 939. MCDONALD: Beyond the percentage? ZAKAROFF: Over the course of the years as the recycling effort continues and with the commercial added in, yes. McDONALD: So normally you believe that you can meet our 25 or 50% if you do the curb side, the green waste and commercial without having to take the normal household trash and recycle it. Is that what you're saying? ZAKAROFF: I believe we'd be close, yes. McDONALD: And so you're picking up your advantage that you'd normally recycle-normally that household trash isn't recycled, but you have the capability of doing it at your MRF. ZAKAROFF: Yes. McDONALD: So, if it can't go into Puente Hills, it goes to your MRF and you get a little bit out of it because recycling plus that's.... okay, I understand the process. ZAKAROFF: The commercial aspect that I was saying would complicate the matter. ADJ CC 4-29-91 Page #6 BRUESCH: That is the specific question I asked when all eight proposers were here to explain exactly what their MRF...and to be honest with you, only two have replied with what I'd consider after about six years of studying this whole issue. As a MRF, a true MRF is where the trucks pick up municipal solid waste that has not been separated and separate it through a series of whatever technology you want, high tech or just having people go in and separate it. And at the end point, that's the front end recycling, at the end point, what is left goes to various other sources, whether it be composting or landfilling or into high temperature burners.:.when you first take the municipal solid waste to the dump, and if it's closed, it goes back to a recycling thing, that is just a recycling center, it's not a MRF. ZAKAROFF: No, no, no, we have an actual MRF which I would like to . invite ...we are not a transfer station. McDONALD: Are you a licensed certified MRF? OWNER: Yes. McDONALD: Okay, that's all we need to know. No matter how they do it, okay ...that is an MRF. BRUESCH: My point is, my point is that materials recovery center, our waste go dump, on all times, and I will not vote says they have an MRF and they going to we've got 25% now, we've got 50% later, the key issues.... if we're going to have a as there first, not to the for any type of company that go to the dump first, because and that is definitely one of ZAKAROFF: I think that is something we can definitely talk about, and we do have a licensed material recovery facility and we would like to show it to you, we'd like to take you on a tour. McDONALD: I think our request for proposals said that if you can guarantee us 25 and 50%, we have to accept that. If this is their methodology of doing it, giving them the advantage of doing it both ways, thinking they can get their 25 and 50% without taking the total amount household trash for recycle, they at least meet the criteria that we are evaluating them on. If Bob desires to vote against that on that principle, that's fine, but they say that they are meeting it through that process and I would accept that. IMPERIAL: I got an assumption that they could do it, not that they would do it. ZAKAROFF: What I'm saying, Mr. Mayor, is that allow us the opportunity, we will prove to you that we can do it. IMPERIAL: Oh, okay. BRUESCH: One other issue that is brought to mind about the...this differentiation of tipping fees between the private operators and the County.operators. If and when, I'm not saying, I'm not making an issue of it, but if and when rail cycle comes in,,it's almost a given fact that the County will take into consideration rail cycling, private tipping fees and your high energy burner in Commerce and all the other places where to put the trash and come up with a overall fee that will kind of balance everything out, so the County becomes a broker, not an end point, but a broker of where that trash goes. So, you're going to see in the near future, the next two or three years, the difference between the private dumps and the County dumps getting smaller and smaller and smaller, because of this move toward kind of a consolidated fee. ZAKAROFF: I may agree with you, Councilman, what I may disagree with you on is the timing. In all the research that we've done, in all the the things that I've done in terms of our law firm representing not only this client, but many trash disposal clients, and people who own the dumps themselves, rail haul does not seem to be that kind of an ADJ CC 4-29-91 Page #7 ZAKAROFF CONTINUES: alternative in the time frame that you're speaking of. Rail haul is a much more futuristic alternative. It is not a short term end-all proposal, it is more of a long term result end proposal. McDONALD: I think we need to make a motion. I think we made a motion last meeting to include those four people that we limit to those four people. If it is a desire at this point to include Zakaroff, I think we need a motion or to say yea or nay. IMPERIAL: Is there a second to that motion? Or is that a motion? McDONALD: It's a suggestion for a motion. If nobody else will make it, I'll make it. IMPERIAL: Is there a motion? McDONALD: I make a motion to include Zakaroff in the evaluation. IMPERIAL: Is there a second to that motion? Dies for lack of a second. Thank you very much. McDONALD: I would like to have Consolidated come up and explain how they came up with their particular fee that they gave us in a letter, and, because I know the evaluations that the City staff has projected us with is using the $8.81 as the base rate. IMPERIAL: I had intended to call Consolidated first anyhow, so Consolidated can come forward. BRUESCH: Mr. Mayor, point of information. Before we start on this whole process, I have a really ...my question is that when we're going 4%, mathematically I need to know, if you're going 4% across the board, doesn't that vary, if you have an overall contract for say, $2,500,000, if commercial is only 30% of that for, say for single family... McDONALD: Are you talking about the revenue? BRUESCH: ...is only 30% of that, wouldn't 4% across,the board really weigh more toward the lower percentage part of the fees? Don't you really have to take that 4% and then take into consideration the percentage of that total waste stream? Mathematically speaking. McDONALD?: Working with tonnage. BRUESCH: Yes, I know, what I'm saying is McDONALD: Are you working with tonnage or revenue? BRUESCH: You're taking 4% straight across the board, on these you're taking 4% straight across the board. Let's say multi-family units detached is only 20% of the total waste stream. Is 4% of that mathematically equated to 4% of something that is 80% of the waste stream? McDONALD: I don't know what you're really getting at, everybody has to pay 4% on their particular rate for that service and it's your rate, not necessarily your tonnage. TRIPEPI: It's 4% of gross revenue, Bob, and it's the same. BRUESCH: But if that gross revenue comes 80% from single family. Bob, (referring to Bob Kress) you see what I'm getting at is... KRESS: Not really, because that becomes the multiplier, the number of units, and in this kind of per unit spread sheet analysis, I think it's correct the way it's stated. ADJ CC 4-29-91 Page #8 BRUESCH: I'll.go along with that, I was just curious. McDONALD: Where it does not work, in a fashion, is when you work with revenues, because the majority of the revenues come from, okay, the residential, but they have less tonnage of, not less tonnage, but... BRUESCH: Isn't this literally revenues? What they're paying the trash companies? McDONALD: Well, the revenues you get from a little over a million, they are almost the same, I guess. But there's less commercial people so that made for more tonnage, so they're getting it that way. If you're looking at tonnage compared to revenue. Okay, I'm sorry. CONSOLIDATED: Mr. Mayor, members of the City Council and Mr. Tripepi. My name is John Tilesio, I'm president of Consolidated Disposal Service. Our corporate office is located at 12235 Los Nietos Road, Santa Fe Springs. Councilmember McDonald, if I can respectfully ask you to explain your question to me once again? McDONALD: We have a graph here from our staff that shows everything based on your printout sheet has a base rate of $8.99, allright, and we backed off...you told us last week, I think it came up, backing it up the way you did and then in your letter of explanation you gave us this last week, or whenever that came in, how you came up with that ...what I have down here is what $7.92? CONSOLIDATED: Yes, sir. McDONALD: And graphically on here, that we have in our proposal, the city staff did it on $8.99, because that's what we had originally. What are you suggesting to us at this point in time that what is your rate? We don't have your rate in front of us, right now. TRIPEPI: Yes. It's in the letter, I believe, is it not? $7.92. No, that's correct because we don't know how that formula was arrived at. I think what Mr. Tilesio was trying to explain at the last meeting, but at that point obviously the meeting did not allow that much time. McDONALD: I'd just like to make sure that each of the Council people know TRIPEPI: I think what he's asking is for you to explain the formula. How you arrived at the $7.92. CONSOLIDATED: I will do the very best I can to make this simple. You can see from this voluminous letter that McDONALD: I understand the formula. I just want to make sure that the rest of the Council feel comfortable with that and will respect your bid, okay, at the lower rate you've shown us in that letter. CONSOLIDATED: Okay, let me respond to that then. Initially, in light of the fact that the RFP specified a particular franchise fee structure, and considering that we provided an alternative franchise fee structure, we felt that it would be absolutely inequitable to back out the 2%. We made a suggestion, an alternative, that an alternative franchise fee structure be, for that matter, adopted, which would provide higher revenues, but as the criteria turned, it resulted in an inequity. If we simply backed out that 2%, it would not work at all. In fact, the initial calculations we made were based on an altered criteria. We reviewed and we considered the entire franchise, including residential operations and commercial operations and we determined what total amount of money we we can return to the City, and at the same time remain profitable and be happy to remain under the contract. What we did in backing out our fees was we considered, what we did basically is we went back to the original weighting formula set by the RFP, which means, if you look at all the revenue generated under the residential operation... if I'm drifting, let me know, by the way...anyway, we considered all the revenue generated ADJ CC 4-29-91 Page #9 CONSOLIDATED CONTINUES: from the residential operation and all the revenue generated from the commercial operation. We determined that 75% of the franchise fees were generated from the residential aspect of the contract. And, of course, the balance of 25% was generated from the commercial amount and we moved to back out all our fees, it's a higher fee, I mean it's built in that we have a higher fee, therefore we back out more, it was built in from the beginning that we would have a higher return to the City. Now when backing it out, we have to back out more, it's only logical. But we did it with the same percentage weighting calculations as established under the RFP. There is one other consideration. I don't know where this sets, but I believe we're the only company that proposed a community fund contribution, and if I'm not mistaken, at the last Council meeting, I believe the Council moved to back out all such fees, including community fund type fees. In fact, if I'm not mistaken further, I believe the issue was initiated with some discussion between Councilmember Taylor and, most likely, staff, where there was a question about the $92,000 and on the basis of that alone a determination was made or maybe I should that led to a decision by Council to back out all such fees. So, we took that fee, it's a half of one percent and we included it in the franchise fees which we backed out. I also understood that no perks or returns whether they're visible in a dollar and cents aspect or whether they're indirect such as the bulky item service,.my understanding was that all such perks needed to be backed out. And on that basis we backed out the value of that particular service. In addition, we described or laid out a reduction that could take place if we were to retain all the recyclable revenues. But anyway that's basically how I support $7.92 as a calculation that we made here. It's substantiated in the letter that I provided you, as you all know, on April 25th. I don't know how I could make it more simple without getting too detailed for the purpose of this evening. McDONALD: Mr. Mayor. I make a motion that we include Consolidated's explanation and letter and the fee they quoted in the letter as part of their package. IMPERIAL: Is there a second? BRUESCH: I second it. IMPERIAL: It's been regularly moved and seconded. Any questions? Would you vote? Taken from voting slip: Yes: Bruesch, Taylor, Imperial, Clark, McDonald No: None Absent: None Abstain: None BRUESCH: Mr. Mayor. I got'a three page memo on dump fees calculation and maybe it's because my mind's been homogenized with all the facts and formulas that we've been going over the last two weeks. I'd like staff to walk us through on how they came up with $.15 raise each year on each of these for the residential. TRIPEPI: Go ahead, Shawna. McDONALD: Excuse me. Mr. Mayor. "Bob, I didn't quite get the question again? BRUESCH: The question is is that I have this three page memo in front of me and I looked it over a couple of times and I'm still a little bit at a loss to find out simply how staff came up with a $.15 raise in dump fees for each year for five years. I want to make sure that everybody out there understands how we did it too so they don't come back to us and say we were using fallacious figuring. ADJ CC 4-29-91 Page #10 SHAWNA WHALLON, DIRECTOR OF FINANCE: I figured out an average dollar price per ton increase based on the last five years. That's the starting number, $1.29. That's the average increase that the City has experienced over the last five years. That's an average for five years. From that I took the total tonnage and multiplied it to get an annual cost. So, the $50,000, that's dollars. The ratio between commercial and residential is 41 residential, 59 commercial for the tonnage. I applied 418 to the total increase and that gave me a total annual residential increase. Because not the whole amount applies to both sections. Then I divided that by twelve months so that I could get a monthly dollar increase which is the $1,740, divided it by the total number of residential units so now I have a cost per unit per month. BRUESCH: Okay. Before we proceed, again for the proposers out there, if you have any qualms about using $.15 per unit tipping fee, because the use of the.... WHALLON: I might want to add this is just based on tonnage because we don't have most of them are projecting basing it on revenue and I don't have the revenue. BRUESCH: I want to make sure that we're not talking about apples and oranges. McDONALD: Mr. Mayor. Bob, this is an example or a projection just happening to look at what happened over the last five years. You can't tie these folks into those fees except for the rate that they give us. You have to realize that. TRIPEPI: So, they don't even need to approve or agree with those, Bob. That's irrelevant. We just gave you this as an example. BRUESCH: My point is that already we've gotten two memos saying that we were given fallacious information. I want to make sure that they know what we're working with, okay? I agree with it. I'm not saying that I'm not agreeing with it. I think that is as close to what you're going to get as possible. But I just want to make sure that everybody understands where we're working from, okay? McDONALD: The point that I was trying to make though, Bob, is we made mistakes on the rates that they had given us which is something that we have to rely on for the exact projection. However, these were put in just taking those projections of what might happen over the last four or five years. They're not actually tied to that. They're just using that as an example for you to see what possibly could be the rate based on what has gone in the past. BRUESCH: I understand that but I just wanted to make it absolutely clear what that $.15 was. IMPERIAL: Are you clear, Mr. Bruesch? BRUESCH: I'm clear. TAYLOR: Mr. Mayor. What Mr. Bruesch is referring to, the County sanitation dump fees, this was prepared on the basis of the Puente Hills landfill. Did we have one prepared on BKK? WHALLON: No. This was based on information that we currently had in-house. TRIPEPI: This was put together as a result of our subsidy report, Mr. Taylor, which is we use the County, we use the Puente Hills landfill as the base rate to compute the subsidy. TAYLOR: But don't we in fact also have the rubbish dumped at BKK? KRESS: The subsidy is all geared to.... ADJ CC 4-29-91 Page #11 TRIPEPI: Geared to the County,.Puente Hills. KRESS: ...the County. BRUESCH: Mr. Mayor. In looking over our own little in-house look at where we were dumping I think we came up with something like 4-5 percent of our trash was going to private dumps or less than that in some cases. So, a vast majority of our trash has been dumped in Puente and most likely will continue to be dumped in Puente. CLARK: Mr. Mayor. I would just like to say for the sake of the audience and in case we get verbatim minutes again, I don't understand exactly what Councilman Bruesch meant by fallacious information and that is rather misleading. The only thing that I see was about a nickel difference in one of the spreadsheets which doesn't amount to a hill of beans. So, I just want to clarify that so people don't think we're making a decision on fallacious information. BRUESCH: I'm not saying that staff gave us...this is the stuff I'm talking about that I'm getting in my mail box and they're saying that it wasn't given to us straight on and that's what I'm just.... CLARK: What do you mean by straight on? BRUESCH: Well, what I'm saying is that when we're getting back this information saying that so and so said this but this is really what they said and like that, I want our staff report to be up front and it is exactly what I would expect from this type of report. I want to make sure that everybody understands what we're using and we're not using somebody else's figures. CLARK: But I think everyone is clear what we're working with and I don't think there's anything fallacious there. McDONALD: Mr. Mayor. I think Mr. Taylor has a good point and I think Zakaroff brought up that point when they said the certain amount of percentage that even though in the past only maybe five percent that could be a major cost of increase to fees over the next five years if it has to go other than Puente Hills but I guess we don't have any control over that? Or can we write something like that into ...can we make them only go one place with their trash? TRIPEPI: On the subsidy that you have now, it's been written in that basically that's the rate you use. If they have to take it somewhere else, they do not get reimbursed at the higher rate but they get reimbursed at the County's rate. TAYLOR: Mr. Mayor. Is that a specific fact that that will be in the contract? And do all these bidder understand that? TRIPEPI: Mr. Taylor, I would assume that's an item for discussion when you pick a contractor to negotiate with as to coming up with an agreement. I think Mr. Kress has stated that. TAYLOR: That's one of the biggest concerns I have. The rest of it's pretty well cut and dried. And regarding the dump rates, one of the bidders gave us some information here that I'd like to read this off the dump rates for the Puente Hills the rate for July 1, 1987 was $9.50 a ton; July 1, 1988 it went to $9.50 a ton; July 1, 1989 it went to $11.60 a ton; January 1, 1990 it went to $12.01; July 1, 1990 it went to $13.35 a ton; March 13, 1991 it went to $14.55 a ton. Now, if you look at what happened at BKK and I'm,going to start with the same period here it's one year later. July 1, 1988 it was $8.36 per ton; September 1, 1988 it jumped from $8.36 to $14.25. Now, this is September 1, 1988, it's $14.25. March 13, 1991 at Puente Hills it's $14.55. Now, we continue with BKK. September 1, 1989 it jumped to $18.74; January 1, 1990 it jumped to $19.28; July 1, 1990 it went to $19.53; March 1, 1991 it went up to $20.59 and I believe there's a projected rate here of May 1, 1991 and I don't have the asterisk doesn't tell me why but as of May 1 of this year it's going to $25.49. ADJ CC 4-29-91 Page #12 r TAYLOR CONTINUES: So, Puente Hills is $14.55 as of March 13, 1991. BKK is $20.59 as of March 1, 1991. So, I'm reluctant in the sense that BKK seems to have an open end moving 50$ faster than Puente Hills. So, the contract needs to be locked in somewhere. TRIPEPI: Mr. Taylor. Someone's going to have to forgive my ignorance and I'll ask this I guess to the people in the audience. I don't know if those rates quoted by Mr. Taylor include the sur charge that BKK throws on. TAYLOR: They do. TRIPEPI: Because I know when the County dump closes they even add more to the tonnage once you can't get in that dump. And as I stated your present contract is locked into the County base rate and if the Council directs the attorney to basically draw up the agreement that that pass through is based on the same rate. That's something that the contractor that you select is going to have to decide yes or no on. IMPERIAL: I believe that was the request that that lock in was a fact. Didn't Council request that when we came back? TAYLOR: Mr. Mayor. If we didn't, I'm requesting it now that it be very clear that if they have to get into Puente Hills they either put on more trucks. to get that trash in on time or they're going to have to find another alternative because automatically these dump fees are a direct pass through in all of the contracts and there's only one of the I think it was Zakaroff that made the point that they would just base everything on Puente Hills rather than BKK. BRUESCH: Mr. Taylor, if you make that into a motion, I'll second it. KRESS: I just want to make sure that we understand what we're talking about here because we don't want to specify and I would caution you I think for obvious reasons that you do not want to specify the' dump site where the trash is going. That gets you involved in the decision making which can'lead to liability. TAYLOR: Well, can we use the base rate, then? KRESS: You can use the base rate and I just want to make sure in terms of future increases that you are now talking about continuing existing policy and that is to base dump fee increases on the County rate at Puente Hills. McDONALD: I move that. BRUESCH: I'll second. IMPERIAL: It's been regularly moved and seconded. Any questions? Would you vote please. Taken from voting slip: Yes: Bruesch, Taylor, Imperial, Clark, McDonald No: None Absent: None Abstain: None TAYLOR: Mr. Mayor. What we just voted I think it needs to be clarified with the contractors and we should ask each one of those four what did it to their bid proposal? How did they interpret it? They simply stated that dump fees would be a direct pass through and if there's a problem with it we need to find out now rather than eliminate somebody then end up with the one that seems to be low and say well wait a minute now I don't agree with what you did there. ADJ CC 4-29-91 Page #13 IMPERIAL: I can understand that, Mr. Taylor and while you're asking it we've had one contractor up here so far so let me ask him that question. CONSOLIDATED: Yes, sir. I think that the issue of the landfill is at least for the first four years of the contract is a moot point under our proposal because we have a rate guarantee so it doesn't matter what happens or where we take that trash your prices will not go beyond 5% per year increase. IMPERIAL: Thank you. If there's no further comment on this we'll go on.... TAYLOR: Mr. Mayor. What about the other contractors? I think they . need to be on record. IMPERIAL: I'm going to ask them as they come up, Mr. Taylor, starting with the second one unless you want that answered all at one time. Athens. Let's start out with answering the question. ATHENS: Yes, we will observe your recent action and only take the County landfill rate into consideration for landfill increases. IMPERIAL: For what period of time? ATHENS: For the length of the contract. We accept your motion. IMPERIAL: Let me have your name and address. ATHENS: Dennis Chiappetta, General Manager Athens Disposal, 14048 Valley Boulevard, City of Industry. Any other questions? TAYLOR: Mr. Mayor. I have one concern about yours is the only proposal I believe that stated it's 25 feet or so if they have to roll the commercial bin more than that, there would be a negotiated rate? ATHENS: That's correct. TAYLOR: Basically, if your truck's on the street and we have a 10-foot parkway and I don't know of many businesses that would meet that 25-foot requirement. ATHENS: There'll been many businesses as well as apartments that would meet that requirement. Some apartment pulls can be as long as 300 feet. TAYLOR: I understand. I would like that increased somewhat because that's basically from the parkway to 10, 15 feet inside the property and 300 feet is exorbitant as far as having to go back and get a bin but yours is the only proposal that has an open-ended clause to negotiate is it going to be a $5.00 rate or the one that's 300 feet back is that going to be $20.00 a month more or $30.00 a month more? That's open-ended for every commercial business or condominium project in the City. ATHENS: Sure. I think in the negotiating process we'd be happy to stipulate what the maximum fee would be. However, I think you're overlooking one important factor. Our commercial rates are significantly lower than any other proposer. TAYLOR: But you tack $10 on to them and they're going to be right back up where your next competitor's at. ATHENS: However, I think in all fairness those people that require the service would be paying it and those people who do would not be subsidizing the forklift operation that will be necessary in the City. TAYLOR: Well, I think ...does that specify only for forklift charges? ATHENS: Yes, it does. ADJ CC 4-29-91 Page #14 TAYLOR: So, if it's a 100 feet away and they don't need a forklift there will not be a charge? In other words, your comment was that if it requires a forklift then.there will be the extra charge. ATHENS: Over 25 feet. TAYLOR: Okay, if it requires the forklift. But if it does not, if it's a 100 feet and it can be rolled out then that fee's not charged. ATHENS: That's correct. Also, I'd state for the record, Ron Arikellian, Jr., Vice-President of Athens Disposal. Good evening Mr. Mayor and City Councilmembers. We'll guarantee you also that we will not be higher than the other three competitors with our average rate and I've got all their rates here for the fork truck service and this is something that I felt we would do during negotiations but I could definitely put on the record tonight that we will not be higher than the average of the other three companies combined. And I've got all their rates if you'd like note them and the averages. TAYLOR: What have you generally charged other cities in the past? In other words, that to me and I'm not saying what you would charge but it seems like that's an open-ended aspect right there. ATHENS: It just really depends from one city to the next. Some cities it's included in the rate. Some cities it's by the foot. Some cities it's a flat $5 or $10, just a flat fee in addition to the commercial or the apartment bin service rate. TAYLOR: I think it should be some type of a flat fee so that all the businesses understand when they meet at the Chamber and such well what are you getting charged? I think it's for your own interest that it be an established fee. ATHENS: We have no problem with that. Our only concern was that if somebody does have a 50-foot push out why should they pay the same price as someone who has a 300-foot pushout. TAYLOR: I agree with that concept. It's clear cut to begin with. ATHENS: Mr. Imperial, if I may? I have a comment if you'll allow me. You recently took action this evening to allow Consolidated to have a $7.92 rate. I just want to point out that the RFP was very specific and it pointed out that you wanted a curbside recycling program and it was very specific with regard to that. There's no mention anywhere in their proposal of said program. We find that to be non-responsive. Also, you were very specific on the franchise fee that you wanted to charge. They chose to change that franchise fee and now we find that they're allowed to back down to the $7.92 rate. I'd also like the City in their last letter that was submitted last Friday regarding their $7.92 to verify and look at the bin rates. Because you'll notice that those bin rates have increased along with the $7.92 rate decreasing. Please take a careful look at that. IMPERIAL: BFI (Browning-Ferris Industries). BFI: Good evening, Mr. Mayor and members of the Council. My name is Tom Jones. I'm with BFI, 150 Almaden, San Jose, California. You have probably missed Mr. John Decker who has been at the last two meetings. He inadvertently had to go on vacation this week. So, I hope'you understand that. I have just a quick comment to make but you had a question about tip fee increases. Our proposal has said that we are going to be taking the material to either of the two county sanitation district landfills, either Spadra or Puente Hills and we are tied into those rate increases, so that's where we are. IMPERIAL: You're willing to comply with the request? ADJ CC 4-29-91 Page #15 BFI: That's correct, for the term of the contract. Mr. Mayor. If I may to just put into the record very briefly. Since Consolidated had their changes and of course you've all seen the letters from all four companies I just want to put into the record that BFI's residential rate is now $7:48 because of the backout of the 4% franchise fee and the curbside collection of recyclables is now $.80 per home per month which gives us a total of $8.28 a month. IMPERIAL: Thank you. Modern Service. MODERN SERVICE: Jim Donohoo, Modern Service Company, 2018 N. Durfee, South E1 Monte. Mr. Mayor. We had anticipated the county dump rate when we submitted our bid since that's what we currently use and therefore we agree to that. McDONALD: Just one thing, whatever the outcome is this evening, Mr. Donohoo and Mr. Gregorian, for 30 years you've given us excellent service as far as I'm concerned and you've done well by the citizens of this community. There's not anybody that you can find that has any complaints and I guess everybody's playing real hardball as far as the contract is concerned but whatever the outcome we certainly appreciate your long years of service and you as friends of the community. Thank you, very much. MODERN SERVICE: Thank you, Mr. McDonald. IMPERIAL: Okay. All the testimony has been taken. McDONALD: Mr. Mayor. Looking at what I've put together here I would make the motion to go with Consolidated at the price in their letter because of the 3-year cap that they've given us, minimized to 5% increase over the next three years, and with the 4th and 5th year based on just the previous year. TAYLOR: Mr. Mayor. Has staff reviewed all the aspects of the proposal? The other elements? In other words are we in a position to eliminate everyone and select a contractor? With all the aspects that were asked for in the RFP? Is there anything that needs to be discussed? Is everybody comfortable that contract, that agreement is 100% understood and in agreement with? McDONALD: I think this point is Mr. Taylor, is everybody comfortable in choosing someone that you need to sit down with. If we can't come to an agreement with Consolidated at that time on something that's acceptable in every fact and fashion of the concerns of this body, we can just choose to say okay this isn't working and pick somebody else. It states that in the RFP that we have, we can choose that person or we deny that person. So, I think at this point we're just picking somebody that has met the criteria, that we have right before us the evaluation criteria. They've given us their history. They've given their financial status. They're all good companies. They're all within a few dollars. But I think what sets me off here is that 5% cap for those three years and that's really in the next five to ten years this whole world of trash is going to completely change. It's too bad we couldn't have really a short contract and just keep on changing every year. I guess that would be a mess but they met the criteria that we have here that was in our RFP. BRUESCH: Mr. Mayor. I think that staff has throughout these last three meetings has gotten direction from Council as to the policy statements we've been making all along. I have one question on that cap before I'm ready to vote and that is at the end of that cap we don't get rearended with a more than agreed to rate increase. In other words, that after 3 to 4 years we don't have a total 5% per year or 4.7% per year accumulative raise. It would be just for that next year. MCDONALD: They addressed that and they would only use.that CPI and dump fees for the previous year increases. ADJ CC 4-29-91 Page #16 BRUESCH: Plus only a $.15.... McDONALD: Don't use that figure. Don't go back to that $.15 figure. IMPERIAL: I think Councilman McDonald pointed out that we're just going to hammer out a contract and if it doesn't work we'll go to somebody else. It's as simple as that. That would have to be part of the program, Mr. Bruesch. Do I have a..... CLARK: Mr. Chairman. I want to say something first, please. I didn't say much at the last meeting so I'm going to take my time now. I think everyone understands that we are merely if we choose a company we're going to sit down and our attorney especially is going to hammer out a contract that will have some of the things that we don't have to discuss tonight and have everybody stay until midnight again. But there are things in there that I want to be sure that are and again I don't want to discuss at length but we will need to come to the senior citizen discount. I would like to ask that all the drivers take that CPR course just as a little added protection and I don't think there's anybody in the room that would object to that. I also am concerned about a low-income, extremely hardship family if we can have a discount for them and again I don't mean based on the rates that are like for example for our Handyman, the Federal guidelines are way above. I don't consider $30,000 income low-income. I'm talking about a family that the nine or so dollars that is going to be increased in the quarterly rate that they're going to get is going to be food off their table rather than the type of VCR they're going to buy. This is what I'm talking about. If we can negotiate that later, I would like to see that in the contract. And the other thing is I still we did it so fast last time and I'm real concerned that we don't have any return coming from the recyclables. And I still would since all the companies were agreeable to a 50-50 return I would like to see that back in there but again I don't want to get into a discussion of'that but I don't think that would make someone back out of the contract but I'm real concerned the fact that if there's no return to the City if I put out my recyclables why should I bother? You know, I'd just as soon have a scavenger get them if they're just going to go to the trash company. I mean that's I'm just speaking in terms of the average citizen that's going to say that if there's nothing coming back to us why am I going to bother to put them out? IMPERIAL: That will be requested Mayor Pro Tem and hopefully that will be part of the bargain. McDONALD: Mr. Mayor. I think just for everybody's concerns everybody should come up with their list of things that they really have their heart in as far as that agreement and see if we can address those and just going to have to be in continual communication with us anyhow but at least those individual concerns can be addressed and each councilperson can feel comfortable that his input is at least listened to and considered. TAYLOR: Mr. Mayor. The representative, Mr. Tilesio I believe, from Consolidated. Did you not state that because of the fact there would be no sharing of the recyclables that your rate could be dropped? I thought that was very specific. Now, we're altering it again. McDONALD: Excuse me. Mr. Mayor. TAYLOR: Did you not state that due to the fact that there would be no sharing and you could keep all the profits that would lower your rate? CONSOLIDATED: It would be reflected in a.... TAYLOR: Now, we're talking about putting it back in. McDONALD: No. What we're trying to do is what Maggie's (referring to Mayor Pro Tem Clark) concern is Gary (referring to Councilman Taylor) is that if the individual resident sees that there's nothing going to the City not realizing they're getting it in a reduced rate, why should I put out my recyclables. ADJ CC 4-29-91 Page #17 TAYLOR: That's already in the contract that the resident has the option of taking all recyclables on their own. So, that's already in the contract. McDONALD: But she's trying to sell the system to the community and trying to figure out if most of the people are.... TAYLOR: Well, I can agree with what she's saying because I just a complaint from the City of San Gabriel that they got their colorized containers now and they have to start sorting the trash and the rates went up. So, there's some validity to that argument. We have to sort it. Somebody else gets the profits. We didn't get a reduction in the rate. It is hard to explain. CLARK: Well, that's what I'm saying. If some of it came back to the City in a little fund that we can use for whatever, you know, as far as have it benefit the community in our program here then it's going to be at least a little bit of an incentive to do it. Like you say, if you have to pay for the container, you've got an extra fee and' nothing's come back to you that you can see, tangible, it's going to tick some people off. BRUESCH: Might I make kind of a middle suggestion? And I've said this before with all these returns and like that I think that money would be well spent in promoting or helping already existing recycling programs. It would be a great way to get those senior programs and those Girl Scouts, Boy Scouts, and all those type of programs that are already doing some recycling to give them added incentive to increase their amount and also get the return from it. See, I always see recycling as a choice of the consumer to do three things. One, separate and put it out in front of your house. Two, take it in yourself. Three, donate it to a group or organization that would benefit from it. And what I'm hoping is that whoever we sign the contract with uses the utmost of its financial reserves to promote those groups which are already recycling who can really set some behavioral changes in older people and younger people. McDONALD: Mr. Mayor. Bob's (referring to Councilman Bruesch) got a good point. But I think if you look up and down the State all the companies that are doing certain things and are having success with the recycling program, the company's going to provide that educational process and possibly the incentives of things that the people could get if they increase or the City increases it or you don't have we put something in your trash bin, that you've recycled so many times. So, there's got to be some kind of incentive program but as far as the City's concerned I'd really like to stay out of the money part of it, anywhere. TAYLOR: Mr. Mayor. Mr. Bruesch's three points that he made was the resident can put the trash out as far as just strictly on a recyclable basis where he believes that it should be reused. Or the resident can take the recyclable goods in himself and the third is donate. That , alternative is also there already but somebody has to make the effort to call up the Boys Club, the Boy Scouts, and say look it I've got aluminum cans, I've got newspapers, I've got glass. Somebody come and get it and I'll donate it to a charitable organization. That can be done right now. BRUESCH: The only trouble with that is and I speak from experience with many groups in the City is the transportation by the group to the recycling place. That has always been especially with newspaper which is 40% of your residential wastestream, anyhow, trying to get the newspaper from where you collected it to the recycler has always been the problem. CLARK: Mr. Mayor. I'm sorry. I didn't mean to open up a big discussion. What I want to know is do we have to decide this tonight? Is this built in to their accepting? If we turn around after we choose a company and say we would like 50-50 is somebody going to say hey you told us we weren't going to have to give you back the recyclables. ADJ CC 4-29-91 Page #18 IMPERIAL: Then we'd go someplace else and talk to somebody else and that's the point I'm going to bring up. We have a motion on the floor. We're running this thing a round-robin again and I just think we ought to make a decision. Is there a second? BRUESCH: Would you repeat the motion, please? IMPERIAL: Mr. McDonald. McDONALD: The motion was to direct.... IMPERIAL: Is there anyone else? Let's get it all on the table so we can just get this thing... ATHENS: My name is Ron Arikellian, Sr. I'm with Athens Disposal Company. I am in no way questioning your judgment, your honorable body, but I'm just wondering. We didn't know that this was only a residential contract that you people were voting on tonight. We thought it was an overall contract. Why do you not compare bin prices, roll-off, these are people that you're protecting also here. They're your citizens. It's not just homeowners, whether it's $7.92 or $6.92 or $8.92. It's an entire contact. Would you please look at the information that we sent you. We gave you comparisons. You can check them. The overall cost is about $1.2 million more for this company that you're just looking for a second and voting to negotiate with. IMPERIAL: That's not the point, Mr. Arikellian, and don't put it that way. Every councilperson here I'm sure has read their material, okay? There could always be a form of arguing. You could come back the next time and asked if we specified how much air you want in the tires on those vehicles. ATHENS: In due respect, Mr. Imperial, what I'm trying to say is it's in your packet. It's very obvious. There's numbers there in black and white. They're not just theoretic. They're absolutes off your RFP. I'm just wondering if you've considered those before you make your decision. Thank you for your time. IMPERIAL: I am not going to ask the Council if they did their homework. CLARK: Mr. Mayor. I would like to...I wasn't through. And I'm sorry. I didn't say much last time and I would like to say what I want to say tonight. And that is there are three things that I wanted to say about the various companies that I think we need to look at and this has been a very difficult decision.- I haven't slept very well for the last two or three weeks and it's a very major important decision, several million dollars is at stake here. And I frankly want to discuss it a little bit more. Number one, I have been very satisfied myself with Modern Service's service and they do have the advantage of knowing every nook and cranny in this City and the one concern I do have that we may get accused of when we come in with an increase in the rate is if there is any, if a new company takes over and they do make a mistake and don't do it quite right because they don't the area that well of our City, we're going to be accused of having worse service and then an increase in the fees, okay? The next thing that I want to say about Athens is that I've talked to several of the residents in other cities and I've gotten very good reports of the people that live in San Gabriel, Alhambra and Monterey Park. They do very good work. And there is the advantage that I think we should consider with them that if we did go with them our immediate neighbors all have their franchise and therefore when we do go for like a regional recycling... everybody's going to have to get very aware of recycling and the needs that we have and if had like a recycling day we could coordinate with the other cities and all do it at once and really get a community going here. Also, they do have a reduced rate for the commercial that we do need to consider. This came up during my campaign, some of the commercial people were very disturbed at the high rates that they were paying compared to the residential. Athens ADJ CC 4-29-91 Page #19 CLARK CONTINUES: has offered us a lower rate on that than the other companies. The other thing that I want to say about Consolidated is that I do appreciate the fact that they have been very far reaching in their long-term-looking at the recycling problem. The fact that our dumps are filling up and we don't have places to put them. They have a very clean and very well maintained recycling facility at this point which takes everything that I could see. My frustration has been with the recycling problem is that I've been an avid recycler for 25 years and I never had a place to take the bleach bottles, the plastic water bottles. I have a tool shed full of those because I won't throw them away. I care enough about the environment but I could never find a place that takes them and they will take them. Corrugated cardboard, paper, whitepaper, everything you can think of they will take at this point. And I think, I have to commend them for thinking ahead and realizing we've got a problem and we're going to do something about it now not waiting until the state whips us into it. And the other thing is they have thought about this problem of the green waste. Where they want to have it go into land reclamation, turning desert into productive soil. And I think that's very far reaching rather than just putting it as land cover on the dumps where it's not going to be productive. It's really going for something in the future. So, I just wanted to say those three things that I'm very impressed with those. And as far as BFI my husband deals with them in his business and he's had very good service from them. So, I know that sounds like a politician but I did want to say all those things. This is a very difficult decision and I don't want to just rush into it without at least discussing some of these advantages that we have. BRUESCH: Mr. Mayor. I agree with Ms. Clark about the difficulty of this decision and I can almost piggyback on everything she said about the proposers that we're studying. I'll add to that. I was impressed with Athens' and Consolidated's education, public education sections. Of course, that's my line so I usually flip to that first to see what was going on and I was very impressed with both of them. Again, we're dealing with four companies have a proven road record and we really have to go with the best instincts and you know if we keep on haggling over but they said this and this is one of the reasons I said that I was making such a big point about that $.15 well they said this and we said that. We can be here until we're all old and gray and in our graves. I mean we have to make a policy statement, at some time give direction to staff and I you know whether we do it this week or next week or two or three weeks down the road, it's going to have to be done fairly soon. TAYLOR: Mr. Mayor. I'd like something clarified on the sheet here for Consolidated as far as the rate. It states that the first year the rate would be $8.81. Athens is $8.60 for the first year. The second year, Consolidated goes to $9.25 for the single family. Athens rate is $9.09 for the second year. McDONALD: Excuse me, Mr. Mayor. IMPERIAL: Are you through, Mr. Taylor? TAYLOR: The third year, where I believe Consolidated would start to take their rate increase, it's $9.72 as compared to $9.60 for Athens. The fourth year Consolidated is now $10.20. Fourth year for Athens is $10.14. Fifth year for Consolidated is $10.95. Fifth year for Athens is $10.71. Now, in four out of the five years Athens is lower no matter what Consolidated does as far as freezing the rate for the first three years. McDONALD: Mr. Taylor. Do you have a letter in your hand that we made a motion on previous in this meeting that we accepted his explanation of his back offs on the franchise fees, the recyclables, his community fee and he gives you, okay, in that letter the fee that is the starting fee. I explained in my explanation to begin with, that's why I had Consolidated come up and explain that the City had used its previous rate, which was its all-encompassing rate and they have since backed out everything and I think you have a copy of that letter in your packet there. And it gives the rate. ADJ CC 4-29-91 Page #20 TAYLOR: Okay. There's only been one contractor out of the nine that's had a free hand as far as adjusting his prices. And I don't like it. One of out nine, that isn't right, and I'm not about to vote on Consolidated tonight because as Mrs. Clark mentioned and Mr. Bruesch and my comments about the entire contract, Consolidated is NOT the overall low bidder. Athens' proposal tonight and'I'd like you gentlemen to open your first page here. I think there's an error on it. The bottom line, April 29th there, that last name on the bottom, should that be Athens? Why do you have Consolidated listed twice? BRUESCH: I had that same question. They say revised rates and revised City rates. ATHENS: Right: Mr. Taylor, the reason for that is the third line down where it says Consolidated revised rates. That is if you agreed and accepted his explanation tonight to reduce his rate to $7.92. TAYLOR: Where is Athens across the line here? ATHENS: We're the low bidder across the line. TAYLOR: What I mean it's a good comparison to see it there and I saw Consolidated twice. ATHENS: This is the savings if you go with our company versus each of the other three companies. You'll see on the first line versus Browning-Ferris Industries, $1,066,000? What we're saying is there that they're second closest bidder. We are the lowest bidder and if you went with us versus Browning-Ferris the City would save $1,066,000 for the five years. Modern service versus us for the five years you would save $1,200,000. Consolidated revised rates which you accepted tonight for him to decrease his residential curb service rate but he also increased his bin service rates at the same time that would be $1,200,000. If you did not accept his explanation and said no the $8.81 sticks then the difference between Consolidated and our company is $1,500,000. TAYLOR: I understand how it is then. Mr. Mayor. Looking at this page right here. That's why I can't vote on the Consolidated program for tonight. It just doesn't add up. ATHENS: Mr. Taylor. May I also add that in our proposal besides saving this money we do offer the green waste service, the free service for invalids that live in town, a discount for senior citizens and for low-income, and also we're using all brand new equipment in this town. Consolidated is not. So, really you're not comparing apples with apples here. We're offering a lot more service for less money. TAYLOR: The contract items, you did list all new equipment. ATHENS: That's what stung me with Mr. McDonald to be very frank with you. Because we are offering a lot more service with new equipment for less money. BRUESCH: Mr. Mayor. Point of information. Since there's a lot of strong feeling one way or the other and it doesn't look like we're going to have a consensus would this Council be willing to continue the paring down process? And then have another meeting over the resulting information. In other words, we cut the proposers in half once, we could cut them in half again and come back then? IMPERIAL: Okay, Mr. Bruesch. If we were going to do something like that then I would suggest we throw this out to bid for everybody. If we're going to do that because BFI came in, not BFI, Zakaroff came in and they had a good point, I can understand that but I thought we had zeroed it down to four people. Now, if you're going to play this game let's just open it out to everybody again and see if we can get more bidders. ADJ CC 4-29-91 Page #21 BRUESCH: No. Excuse me. I'm not saying that they go back and rebid or refigure or joggle this I'm just saying break it down so that the Council can go back with the information they have now to study it more thoroughly so that we can make a decision in the upcoming meeting. To be honest with you, I'm getting tired of having every company come up and saying well their figures are wrong. This is what I was saying about the $.15 thing. I want to be able to sit down with two or three and just look at what Gary's holding a little bit of the information which I am looking at and then come back with a decision. I'm not saying,go back and rebid. I don't mean that at all. Do you understand what.I'm saying? IMPERIAL: Right now I understand this. We've got a motion on the floor. We need to do away with that first, okay? If that motion is changed to not consider or whatever let's get that motion off the floor. TAYLOR: You have a motion but you don't have a second. IMPERIAL: I've asked for a second. If it dies for lack of second, Mr. Taylor,.then I can understand that and we can go on with business. Now, I can agree with everything that's been said here and Maggie (referring to Mayor Pro Tem Clark) you said you'll say your piece. Now, I'll say mine, okay? I agree with everything said here and let's start from the beginning. Consolidated had a good bid, Athens had a good bid, BFI had a good bid and contrary to popular belief and I want to clarify this right now, when it comes to Modern, I think Modern has given this City good service, okay? Regardless of what my indifferences were with anybody and a challenge to my integrity and my professionalism Mr. Noonan, I think that Modern has given this City good service and my argument is not with that, okay? So, whichever way this contract goes that's fine. I wanted to put that out for a point that you should recognize. I think it's our obligation to do something with this whether you want to postpone it to the next meeting, whether you want to make a second to this motion or let it die for lack of a second, let's just get this thing on the road, that's what I'm saying. MODERN SERVICE: I'll be very brief and quick. The last request for additional information that we submitted we submitted the method we would use for rate increases which according to Mr. Tripepi we should go along with the Consumer Price Index unless we found something better. We also have offered as McDonald brought up to cap our increases at 4.75% for the five years which is totally significant here if that's what you're basing your vote on at this point. And that is in our proposal. IMPERIAL: Thank you. You had something you wanted to say? BFI: My name is Jonathon Aber, 150 Almaden Blvd., San Jose. The issues that you struggle with here tonight are very tough I understand.. The process that this has gone through you have not been lured into a backroom to talk to any one contractor. You have kept this out in the open, exposed and I commend you for that. I think you're doing a good job. I'm not the lowest bidder. My company's not the lowest bidder. We recognize that. We accept that. Whatever your decision is here tonight, next week we'll accept that, too. We just wanted to let you know that if your decision is with us we won't be back here after two years asking for an increase because we put a cap on'anything. Our number is our number. Thank you. IMPERIAL: Is that it? Now, I understand, I'm being told there was a second to that motion? Is there a second to that motion? TAYLOR: Second to which motion? IMPERIAL: That motion by Mr. McDonald. Was there a second to it? If there was I didn't hear it. TAYLOR: I didn't hear it either. ADJ CC 4-29-91 Page #22 • . 0 IMPERIAL: Okay. Then there was no second. Mr. McDonald, do you still entertain your motion? TAYLOR: It dies for lack of a second, Mr. Mayor. McDONALD: Mr. Mayor. I withdraw my motion but I'd like to make a statement to Gary Taylor that he voted to accept the Consolidated explanation and the fee that was on that letter previously here this evening and then turned around and decided that he wasn't going to accept it. TAYLOR: Mr. Mayor. Because I voted for a letter didn't mean I voted for the contract. You stop and think about this multi-million dollar contract. Somebody sends a letter in and it says I'm obligated to vote for their contract. Somebody's got a hole in their head. McDONALD: No. I said you...I specifically pointed out the rate that he had given us and the explanation. It wasn't the letter. IMPERIAL: Gentlemen. If I may, due respect to both my colleagues here, I would like to stop this debate right now and ask what's your pleasure because we no longer have a motion. TAYLOR: Mr. Mayor. We have some good proposals here and all four of them. Now, I don't believe we have to accept this contract tonight and eliminate all of them. Again, I'd like staff to go back and review the items in the contract, the trucks that will be furnished as far as that was an item that they came back and just make a checklist who has really answered the RFP.closest. The commercial rates are definitely to be considered. Athens comes out lower in the residential, they come out lower in the commercial and I have mixed feelings between Modern Service has been a good contractor. Those are the two low bids, Modern and Athens. So, staff needs to put it all in a package tonight and review that agreement and I don't intend to discuss it all in detail but I just want the final checklist on it. We're down to the four good.... IMPERIAL: Are we talking the four contractors, now? Or what are talking about, Gary? What's your pleasure? TAYLOR: The ones we have here are they've been... IMPERIAL: We're talking Consolidated, Athens, BFI and Modern? TAYLOR: They've been done very well as far as what they've proposed to us but I just can't say okay that's it. We haven't really checked everything. We just select one tonight because in my opinion Consolidated is NOT the low bidder. IMPERIAL: Okay. I'm going to request of this Council then that if you expect staff to go over all these proposals, each four, then I want each councilmember that if he's got any questions at all to have those in to staff by tomorrow to go over something with knowing what we have in mind because you know this could be very confusing. CLARK: Mr. Mayor. I think we have enough information to make a decision tonight. We've had this material before us for what a month? We've had time to make a decision. I brought out the advantages of each because I think it's a difficult decision we need to hash it but let's hash it out and get it over with. BRUESCH: I agree. IMPERIAL: So, you want to hash it tonight? CLARK: Yes. IMPERIAL: And you want to hash it out, Mr. Bruesch? BRUESCH: I certainly do. ADJ CC 4-29-91 Page #23 IMPERIAL: Okay and I have no problems with hashing it out after I take a what they call a john break. So, I'm going to take a five-minute break I call this meeting back to order. The gentleman from Zakaroff has asked to give his last comments. ZAKAROFF: Thank you, Mr. Mayor and members of the Council. I just merely would like to make a request of the Council to consider a policy matter since we feel that we are the lowest bid and we have been excluded which we understand. We'd like to know if it is your intention to award the bid tonight which means actually awarding to sit down and negotiate with somebody if those negotiations do fail what is going to be'your policy as to who is next in line in terms of being asked to or what people are open to come into the door after that? TRIPEPI: My understanding, at least from the staff's recommendation and in discussions with the City Attorney, if negotiations break down and fail with that company the Council will then come out and a majority of the Council will decide who they want to go in and negotiate with. ZAKAROFF: Will it be limited to just the other three or will it be open to the nine or that's my next question. TRIPEPI: I believe it will be limited to the three remaining contractors and if they can't come to some sort of an agreement with those three then they have an opportunity to go back to the remaining. ZAKAROFF: I guess it's my request then that you expand that three to four since I do believe that our letter indicates that we are the lowest bidder. TRIPEPI: That would be up to the Council as policy. IMPERIAL: Okay, gentlemen. What's your pleasure? I think we've already covered this one time. As far as I'm concerned we're dealing with Consolidated, Athens, BFI, and Modern. BRUESCH: Mr. Mayor. In deference to staff I like Maggie (referring to Mayor Pro Tem Clark) have been reading this every second I have and it's getting to the point where figures and numbers are getting all mixed. I'm saying that in deference to staff I don't think if we sent back this for more information they could any more information. All they would be getting is regurgitation and reformation of the same figures in different parameters and I don't want to put our staff through that because we've got to move on and staff has to do other things besides deal with this. I don't think we're going to get any more help or any more information than we have already in our hands. So, sending it back to staff would do any good to get more information. So, I think we really have to work with the information that we have at hand. TAYLOR: Mr. Mayor. My only real concern was that we go through the agreement and the RFP as far as I'm satisfied with the four that we have right now and the prices that were given to us as far as I believe Modern Service and Athens both have the best proposal from the beginning and all I was concerned with was that we'd at least review the agreement and the proposal, such as equipment and the bins. The recyclable containers, we discussed that. It's just the finetuning of it. I think we're 96% there. CLARK: Mr. Mayor. why don't we discuss it? It's only 9:15 p.m. Let's talk about it if we need to. TAYLOR: Well, it's simple enough. Just open up the agreement and... IMPERIAL: Mr. McDonald? McDONALD: I have nothing to add. I'd make a motion for Consolidated again if you're ready for a motion. ADJ CC 4-29-91 Page #24 IMPERIAL: Okay. I'just wanted to make sure that we were all in tune on opening this up. Let's get it squared away and get somebody to deal with, okay? Who wants to open it up? BRUESCH: Mr. McDonald, did you make a motion? McDONALD: I make the motion that we choose Consolidated for our disposal service. BRUESCH: I'll second that motion. IMPERIAL: Okay, we have a motion and a second. Any comments, gentlemen? McDONALD: Mr. Mayor. The reason that I'm choosing Consolidated over the other proposals is that he came in with a lower figure that we previously accepted this evening. Secondly, he's capped it on a three-year basis to 5% including the dump fees. Thirdly, he meets all the criteria that we've established in the Request for Proposals. And we've talked to everybody. I think we could work with everybody. There's no doubt about that. And I think we could sit down and make an agreement that we'd be happy with. And I'm sure we could that with all the other companies but those are the reasons that I made the motion to go with Consolidated Service. IMPERIAL: Any further comments? Would you vote please. We have a motion and a second. Taken from voting slip: Yes: Bruesch, Imperial, Clark, McDonald No: Taylor Absent: None Abstain: None CLARK: Mr. Mayor. I would like to clarify the reason that I voted. for Consolidated is again my feeling that they have been far reaching in their what they're planning to do with the recyclables. I was very impressed with what they have and they are also offering a low bid. I was also impressed with Athens in their what they had and this was an extremely difficult decision and as I say this is only a five-year contract and we'll see what happens later but I just want to reward far thinking companies because I think that's the only way we're going to solve the major problems that-we're up against and another thing I do want to say is that there was a comment made at the beginning of this session that we should allow another company that had never bid to come in and this process has been going on for months and months. I myself attended the meeting that was a pre-meeting that almost everyone here was at. I just was a private citizen at the time and there were questions given to the staff at that time, what do you want in the RFP? How are we going to respond to this? And there was plenty of time for companies to come and make that proposal. So, I just wanted to clarify that that I feel we've been fair in this as far as allowing enough time for companies to come in. BRUESCH: Mr. Mayor. I too want to commend all the bidders for response. My feelings was in terms of the questions we asked. There was four things that I asked of bidders to come back with about a month ago and three of the four that we were considering tonight came back with extremely good responses. I mean we asked for specifics on MRFS, specifics on what formula they would use, very specific information and three of the four responded with that type of specific information. My main concern is in talking with staff is do we go over and over the same material. And I don't think we're going to get any more information. It only opens it up to more recriminations between the bidders and recriminations between the bidders and staff and I think we have to come to a decision and this is I'm glad we've taken the first step. ADJ CC 4-29-91 Page #25 • • TAYLOR: Mr. Mayor. I have no bones to pick with any of the companies as such. This will be back on-the agenda when for the contract approval? KRESS: We can try to have it for your May 14, 1991 meeting and that would be the goal at this point to have some negotiations and finalize this next week. If there are issues that need to come before the Council for final review have them at your May 14th meeting. As I previously informed you the May 28, 1991, 1 will be on vacation and I will need to send a substitute. I hope not to leave this contract in progress and I will do everything I can to have it wrapped up before I leave. I think that this evening.while we're all here questions should be asked to the leading contender, Consolidated. Are they prepared to start these services on July 1, 1991. If the answer to that is yes then as we know Modern Service bills three months in advance and I assume they're getting ready to send out a bill. If we're going to have a new contractor July 1 then that should be reflected in their billing. MODERN: The bills have already been sent so we'll have to work something out. TAYLOR: Mr. Mayor. Then if it's agreeable with Modern Service I'd like to extend.this date of the billing has gone out, add 30 days to the contract to cover that billing cycle, if Modern Service is agreeable to that. MODERN: Unable to understand this portion - speaking from the audience? TAYLOR: Thank you. Also, again, I believe there's a lot of items that need to be ironed out and I'd like these minutes verbatim and also I'd like to include in the minutes the cover letter from Athens Disposal stating the projected savings and we're going to have to live up to that with this new contract as far as I'm concerned. IMPERIAL: I would like progress reports made on negotiations given to Athens, BFI and Modern in case we fall through on negotiations that they're aware of where we have to pick up so I'd like that to be done as a courtesy to them as the three of the four contenders. I would like to say I think when I look at a contractor I'm not looking at primarily the cheapest price but I'm looking at number one who can I communicate with; who is accessible because it's not just.an idea of just picking up trash. There's more to it than that. I think when you've got a good working relationship and the company is close that you can keep things moving right along and I think that's the basis for my feeling on this thing and I had no problem, I'll be very honest with you, with any contractor in the area with the exception of I would wonder how BFI would be able to service us from San Jose if we had to call up with a complaint and wait for somebody to come down. That was my real concern. So, based on that I feel like I did the very best I could and did what I had to do so if there's nothing further.... TAYLOR: Mr. Mayor. One last item I have. When it comes back for the Council's approval I'd like a line by line breakdown of all of the agreement and Request for Proposal line by item to see how they met those requirements. BRUESCH: Mr. Mayor. Throughout these last couple of weeks when we've been discussing this, quite often each of these councilmembers expressed certain things, we took some votes on it and gave direction to staff. I think it might be apropos at this time to if anybody has a particular thing that they want to reiterate this would be the time to do so, for staff. I know for one, we talked about liners or tight fitting trash bins. We directed staff to negotiate on that basis of having some type of policy where food stuffs would not be allowed to cake and rot onto bins so I strongly urge that. ADJ CC 4-29-91 Page #26 • • IMPERIAL: We're.asking the staff and the City Attorney to put together a contract so I would ask you at this point if you don't want to make that point now they need to know by tomorrow to staff know let staff know what you want in this contract so we don't go over this over and over and over again. So, I think we'd better make points and in my opinion make them now before we leave. Let's go at it. KRESS: Mr. Mayor. I think the process really is to put in bullet proof writing the proposal that you've accepted this evening. And I don't anticipate that there's going to be a lot of negotiations except over wording and some small matters that I've noted that you want to have included. CLARK: Well, I mentioned a few at the beginning of the meeting not to belabor the time for making the decision but I am concerned about the recycling return and also the extreme hardship low-income rebate.... KRESS: And I've made a note of those to raise those issues. Just as you wanted to make a decision this evening and get on with the process certainly at this late hour we don't want to start all over again and say but this is really the deal we want. I would expect that the Council if you have items again they're refinements of matters that have already been.discussed and we're not hopefully going to start anything all over again. CLARK: Who's going to make the decision whether we have 50-50 or 65-35 or whatever? TAYLOR: Mr. Mayor. At this point.... TRIPEPI: Council... has to be negotiated. CLARK: Well, when? TRIPEPI: ...if the agreement does go then.... IMPERIAL: Mayor Pro Tem, you stated your requests now the Council knows what they have to go with and if there's any problem with that then have to get back to the Council and say we're having a problem with Item A, Item B, Item C, and Item D if they can't come up with these items in their contract. CLARK: So, we are going to go with those unless the contractor.... IMPERIAL: State your wishes Mayor Pro Tem and the staff will go with those to the contractor. Now, if we can't come to an agreement with the contractor, again, we're keeping everybody abreast of what is happening on this contract and we just drop that and go someplace else. We only have so much time to get this done and I don't believe in going into a long extension. CLARK: Okay. But my question is is the rest of the Council in agreement on the things that I've said or are they are going to come back later and say well I didn't like that after all? IMPERIAL: If the Council isn't in agreement you're not going to get it anyhow. If the Council's going to agree once this contract is put together that they can do without that item then you're going to be maybe one vote out of five so it won't be.... CLARK: Yes but wouldn't it be better to do it now than wait until we have a contract in front of us and then quibble over minutiae? TAYLOR: Mr. Mayor. Mrs. Clark mentioned a couple of items and there's probably I'm going to say 30 items that staff needs to review and analyze. I don't intend to stay here tonight and go over the entire agreement now. You've selected a contractor on a RFP request. We pretty well decided on the rates and I have no problems with what she has asked for so far so if the Council doesn't object then staff would be directed to try to get that into the contract. But there's too much detail to try to pin down every T crossing every T and dotting the I tonight. ADJ CC 4-29-91 Page #27 • CLARK: I agree. C~ IMPERIAL: I think that's what I said. So, what we're saying in reality is state your requests and staff will write it down and that's what they're going to go for the contract. You have your choice when this is put together whether you want to vote for this contract or not. Just state what you want right now so the staff knows what they're doing. TAYLOR: I heard no objections to what Mrs. Clark asked for so I assume that there's going to be.... CLARK: That's all I wanted to know. McDONALD: Mr. Mayor. I certainly don't have an objection to what she's asking for. We voted last meeting that we weren't going to accept any fees back in any situation and I think we can decide that again if they can come up with something that's workable. I just don't want to be involved in any money from the trash process. One other statement I'd like to make is that I want to thank all the people who bid on this project. It was I think run as professionally as I can believe bids can be brought in. I wasn't called or I wasn't talked to by anybody as far as lunches or anything so it was very interesting. I think we put that out, we had the City Manager put that out up front, that no individual companies kind of talk to the Council people other than in these meetings and by correspondence through letters so I appreciate the way that you folks conducted yourselves in making the bids. BRUESCH: I too would reiterate what Councilman McDonald said. I too was not lobbied. Purposely stayed away from some Chamber functions so I wouldn't be lobbied. But I do think that we have taken the first step toward compliance with the new state law. It's going to be tough row to hoe for everyone here, the Council and the City and right in the middle is our trash hauler and whoever gets the contract whether it be the one we started negotiations with tonight or someone else, they're going to be the middle person. They're going to be the person that is going to be aimed at from both sides, the populace and the City Council. So, get ready guys. The fun is just beginning. IMPERIAL: Any further comment, gentlemen? TAYLOR: I move we adjourn. IMPERIAL: Okay, we'll adjourn this meeting to May 2, 1991 at 7:00 p.m. for the purpose of conducting interviews for the vacancy on the Planning Commission. This meeting is adjourned. END VERBATIM DIALOGUE Respectfully submitted: APPROVED: c~c. 2Li~-env _ y Clerk MA ADJ CC 4-29-91 Page #28 AMENS DIS§DSAL COMPANY April 29, 1991 Mr. Frank Tripepi city manager city of Rosemead 8838 East Valley Boulevard post office Box 399 Rosemead, CA 91770 Dear Frank: rn Attached for your review and consideration is a summary prepared by Athens Disposal Company depicting the estimated cost saving on the Request For Proposal by your city. We agree with your obser- vation that four proposals do not have a significant dollar gap for a single home owner. However, the residential portion of this contract accounts for only 50% of gross receipts. Athens offers substantial savings for all other services. When combin- ing all services with the residential, Athens will save the City of Rosemead in excess of $1,066,857.00 over our nearest competi- tor over the term of this contract. The attached is compilation of a comparison of Athens and the three closest competitive companies: Browning-Ferris, Ind., modern services and Consolidated Disposal Company. Included is a complete analysis company by company with all supporting detail for each. In addition, we have prepared a one page complete summary of all companies capsulizing the following contract savings versus each competitor. C~ P.O. Box 7029 • C;ry of Industry, G 91744 (818) 336.3636 Athens Disposal Company, Lowest Bidder Versus: company Dollar Savings Percentage Savings Browning-Ferris, Inc. Modern Services Consolidated - Revised Rates $ 1,066,857 $ 1,219,766 $ 1,229,722 10.44% 11.94% 12.04% Consolidated - 1 524 893 14.92% Revised City Rates $ ' savings swill lbe evenamoreasbased Obviously, onservative estimates. savings c on usage of services. We are available to explain our analysis and would welcome the opportunity to discuss with staff and Council members today, or at tonight's meeting. Sincerely, liCSil Ron Arakelian, Jr. Vice President attachments cc: Rosemead City Council ADJ CC 4-29-91 Donald J. Wagner, Assistant City Manager page 1129 Robert L. Kress, City Attorney