Trash Hauler Goes Public in Fight for Recycling Contract

A family company’s grip on the lucrative trash industry in north Orange County could get even tighter today if city officials endorse a plan to award Taormina Industries a $5-million annual contract to recycle the city’s garbage.

With the Fullerton contract, the Anaheim-based company would own the rights to recycle or collect trash in seven North County cities, including Anaheim, Brea and Yorba Linda.

But its bid, the lowest of the three offers submitted, is meeting an aggressive challenge from Fullerton’s current garbage hauler, who has enlisted residents to send hundreds of letters of support to City Hall.

“God, I’ve never seen anything like it,” Councilman A. B. (Buck) Catlin said, describing the missives that continue to pour into council offices--most in support of MG Disposal Systems Inc. “There are bumper stickers and people with (lapel) pins. MG has really gone the political route.”

Call it Fullerton’s little trash war.

MG Disposal is no newcomer to Fullerton, having held the exclusive right to collect garbage from the city’s businesses and homes for the past 38 years.

While that contract extends through the year 2000, the company’s public relations blitz is geared toward breaking into the industry’s equally lucrative recycling operations.

According to MG’s plan, a new $15-million recycling complex in Fullerton--financed by the public and operated by the company--would bring greater local control, 100 new jobs and a new source of property tax revenue for the city.

But MG is fighting a strong staff recommendation for trash giant Taormina Industries, in which the city’s 150,000 tons of trash per year would be processed in Taormina’s existing recycling plant in Anaheim, six miles away.

“Trash is a regional issue,” said Assistant City Manager Chris Meyer. “From the city’s perspective, it just makes more sense to go to an existing regional facility rather than to build one that would just serve Fullerton.”

Meyer said that because the Anaheim plant already serves a number of cities, the costs of operation are shared, limiting Fullerton’s financial risks.

In its review of the proposals, the city has cited MG’s inexperience in recycling operations, adding that the company has yet to purchase the 6.7 acres it identified as the plant’s future location.

“(MG’s) proposal incorporates a 20-month schedule for acquisition of all permits, design, construction (and) operational shakedown,” the city’s review states. “This is a very aggressive schedule, given the environmental review and permitting process required for a facility of this type.”

The city’s search for a recycling operator is actually mandated by state law, which requires governments to begin diverting 25% of their waste from local landfills by 1995 and as much as 50% by the year 2000. For city residents, that will probably mean an extra $2 on monthly trash bills.

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For top city officials in Fullerton, the issue has come down to proposals from Taormina, MG and a third company, CR Transfer of Stanton. Other than CR’s bid, Catlin said, little has been heard from the Stanton company during the review process. It is believed that today’s council action will undoubtedly be a choice between Taormina and MG.

Officials representing MG and Taormina could not be reached for comment.

Meyer said that Taormina has submitted the lowest bid, charging processing fees of $37.75 per ton of trash. MG has proposed fees of $53 and $41.33, based on varying financing options for the recycling plant. CR’s bid came in at $41.90 per ton.

“As far as we’re concerned, all costs associated with MG are unknown,” Meyer said. “No land has been purchased, there is no building. . . . You’ve got to look at the experience of the people who are proposing to do this. They (Taormina Industries) are a big outfit.”

“MG is a waste hauler and a damn good one,” he said. “But they are not a waste handler.”

The Taorminas, who have held the city of Anaheim’s garbage collection contract for nearly half a century, have greatly expanded their interests and now recycle trash from more than 30 cities throughout Southern California.

In Anaheim, the Taormina family’s civic and political contributions are widely recognized. But a review of recent campaign contribution and gift statements filed by Fullerton City Council members showed no contributions from trash industry executives.

Mark McGee, operations manager for MG, said his company’s campaign is purely “information” driven.

“A lot of citizens in Fullerton feel like this is an important issue,” McGee said. “The amount of letters being received at the city just shows that people are interested in the outcome of this.”

Included in its information campaign, the company has distributed “sample” letters to residents requiring only their signatures for return to City Hall.

“It is my belief that our best interests will not be served by transporting solid wastes to an existing facility in another city,” the letters state. “A state-of-the-art facility built here in Fullerton will provide the city with enhanced service, greater control over its destiny and a better way to meet the changing needs of the city in years to come.”

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McGee said he was not familiar with the city’s recommendation and was not ready to concede defeat.

“They’ve got a lot of material to look at,” he said, referring to information from various sources provided to the City Council.

Based on the staff report, Catlin said he would “lean strongly” toward the Taormina recommendation, but was uncertain about a council consensus.

“I don’t think I’ve seen a staff report so thorough,” Catlin said. “It’s a unanimous recommendation, and I find that hard to ignore. On this one, I can only say, stay tuned for film at 11.”

Councilman Chris Norby said he would not make a decision until tonight.

“This is a very important issue for the city,” Norby said. “I want to give the local operator (MG) a full hearing.”