City, Hauler Disagree on Trash Rates

Less than a month after a new 10-year trash contract took effect, the city could be heading for arbitration with Solag Disposal over waste disposal rates.

The two sides cannot agree on whether a reduction in county landfill fees should apply to the new contract, which took effect July 1.

Under terms of the new contract, the city will appoint the arbitrator. Solag officials said this week that they are waiting for legal advice on whether they should participate in the arbitration process.

The disagreement stems from a county decision in March to lower landfill rates to $27 a ton from $35.

At that time, Solag was competing with several other firms for the contract and had submitted what would eventually be the winning bid.

City officials say the new Solag contract requires an adjustment to commercial and residential rates whenever landfill fees go up or down.

“The bid preceded the reduction, so the reduction should be applied,” City Manager Bruce Channing said. The landfill fee “should be passed directly to the customer, whatever it is.”

Tom Tulis, who owns the San Juan Capistrano-based Solag, said there is no contract provision that ties rate reductions to lower landfill fees.

“If that was in the contract, we would have to do it,” he said. “Our Laguna Hills customers already have the lowest rate in the county.”

Residents saw their trash bills drop to $12 a month from $15.84 on July 1.