MISSION VIEJO : Trash-Contract Rules Upset Small Haulers

Small waste-haulers complained bitterly last week that stiff requirements placed on bids for the new city trash contract put the lucrative franchise out of their reach.

The trash companies told the City Council that a $250,000 bond for the residential and commercial franchises was too high.

The haulers also derided what they called an attempt by the city to completely indemnify itself and place any future legal problems on the back of the winning trash company.

“I don’t think you have the right to take away people’s constitutional rights,” said Delores Otting of 5-Star Rubbish in Newport Beach. “We may be trash haulers, but we’re not trash.”

Madelene Arakelian of Irvine-based South Coast Refuse also objected to the city’s request for proposal--a legal document containing the conditions Mission Viejo wants to see in the new trash contract--saying it was far too complex and voluminous.

She also railed against the $250,000 bond required from the winning trash company by Mission Viejo.

“There’s no way a small company can compete with the stupidity in this contract,” Arakelian told the council. (Arakelian is the Democratic candidate for the 35th state Senate District seat.)

The bond is required to indemnify the city against potential fines for not meeting a state law requiring that certain levels of recycling be met in each municipality, and for potential Superfund cleanup costs.

Although representatives of at least three other trash firms were in the audience, none spoke to the council. Other waste companies have expressed similar concerns to city staff.

However, city officials stressed that there is great flexibility in its request. The council will consider proposals from waste haulers on July 10.