COSTA MESA : City Wants Multiple Waste-Hauling Firms

Going against a staff recommendation, the City Council tentatively decided this week not to award its lucrative commercial trash-hauling contract to an exclusive franchise.

Instead, after hearing pleas from waste haulers denouncing a potential monopoly, the council agreed to allow competition among companies.

The action was taken in response to state law AB 939, which forces all cities to reduce waste or face stiff penalties. Under the plan, cities must reduce the amount of commercial trash being taken to landfills by 25% by the year 1995 and 50% by the year 2000.

Failure to comply could result in $10,000 a day in fines.

In accordance with the state law, a residential reduction plan has been in place in the city for about two years.

Monday’s vote was the first taken by the council to reduce commercial waste.

The public works staff suggested that Costa Mesa follow the path of 29 other cities and adopt an exclusive contract because it would be easier to monitor whether the trash-hauling company was meeting the state requirements. As part of the recommendation, it was suggested that individual haulers be phased out by 1995.

Members of the business community and waste-hauling industry lashed out at the plan, complaining that it was unfair and would result in higher fees.

“This issue is a very serious one,” Jim Henwood, general manager of South Coast Plaza, told the council. “We like the opportunity to control what is happening.”

Heeding the warnings, the council instructed the staff to implement a plan that would require the separate haulers to be responsible for meeting the state requirements. Currently, 16 haulers have permits to do business in the city. Of those, about five hold contracts with local businesses, officials said.

“Each hauler is required to pay a fee and show that they are making the 25% and 50% reduction rates,” said Carol Jacobs, administrative assistant.

The council also agreed to hire a consultant to help implement other areas of the plan, including public education programs and other promotional projects. According to the staff, the additional work demanded by the state law could not be accomplished by current staff members.

Although council members agreed to the plan Monday night, they did not formally accept it. Final adoption is expected to take place by the end of this year.