Cerritos Rejects Lower Bid, Awards Trash Contract to Downey Firm : Utilities: The city bypasses Waste Management’s offer in favor of Calsan. Monthly home bills will rise to $10.60.

The Cerritos City Council has approved a trash hauling and recycling contract with a Downey firm, bypassing a competitor that guaranteed a lower rate.

The five-year contract, valued at more than $22 million, was awarded to Calsan Inc., the city’s trash hauler for about 16 years. Monthly trash bills for residents will increase from $8.67 to $10.60 on June 1.

Officials from Waste Management Inc., the nation’s largest trash hauler, submitted a bid of $8.79 a month. Waste Management’s offer would have cost residents and businesses about $1 million less annually than the Calsan contract, city officials said.

The council last week voted 4-1 to award the contract to Calsan, despite objections from Waste Management officials and some residents. Councilman Sherman Kappe said Calsan has provided good service for several years, adding that the price difference is minimal.

Councilman Paul W. Bowlen dissented on grounds that the city should have taken the lowest responsible bid.

Michele Blair, a Waste Management spokeswoman, said she was surprised the council selected a more expensive firm. “What did it tell me? That nice guys finish last,” she said.

Jeff Duhamel, Calsan general manager, said his company’s offer was competitive, noting that Cerritos has the lowest rates in the Southeast area.

Several residents protested the contract. “How about getting the best price for your constituents?” Steve Repasky asked the council.

A few residents said they favored Calsan, however. “I think you should stay with a winner, and they have done nothing but good for the city of Cerritos,” said Robert Rowley.

When bids were reviewed in December, city staff recommended that the council approve Waste Management’s bid. “We felt their rate was cheaper,” said Vince Brar, public works director. The council rejected the recommendation, ordering staff to negotiate exclusively with Calsan.

State law does not require cities to select the lowest responsible bid for most service contracts, including waste hauling, said Debbie Thornton, a spokeswoman for the California League of Cities.

Cerritos and other cities are required by the state to recycle 25% of their trash by July 1, or face fines of $10,000 a day. The city’s contract with Calsan includes $2 million in insurance to cover penalties, but Brar said he is confident that the city will meet the state mandate.

Rather than providing recycling bins, Calsan will haul the trash to a facility where workers will separate recyclables from trash as it moves along a conveyor belt.

Officials were concerned that a curbside program would attract scavengers, and that some residents would not participate, Brar said.

“By going to the materials recovery facility we can make sure all the trash will be picked through,” he added.

Brar said there was little price difference between the options of sending trash to the recovery facility or having curbside pickup.