Measure Montebello-O: Competitive Bidding Process for Solid Waste Hauling Services

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League of Women Voters of California Education Fund

Los Angeles County, CA

November 8, 2011 Election

Measure Montebello-O
Competitive Bidding Process for Solid Waste Hauling Services
City of Montebello
Ordinance - Majority Approval Required

Pass: 3,039 / 71.09% Yes votes ...... 1,236 / 28.91% No votes

See Also: Index of all Measures

Results as of Nov 18 2:05pm, 100.00% of Precincts Reporting (15/15)

Information shown below: Impartial Analysis | Arguments |

Shall an ordinance be approved which requires franchises for providing solid waste (trash) hauling services to be awarded through a competitive bidding process requiring a public hearing and other compliance requirements to ensure fairness and transparency?

Impartial Analysis from
ARNOLD M. ALVAREZ-GLASMAN, City Attorney
Measure "O," titled the "Residential Solid Waste Franchises Initiative" is a Cityinitiated measure that would add regulations to the Montebello Municipal Code ("MMC") requiring the City Council utilize a competitive process to award residential solid waste franchises.

Background:
Currently, the City of Montebello contracts with Arakelian Enterprises, Inc. dba as Athens Services ("Athens Services"), for the collection of trash/solid waste at residential properties located within the City. Contracts between cities and private companies for trash services are commonly referred to as "franchises."

Athens Services currently has an exclusive franchise for the collection of residential solid waste in the City, meaning that Athens Services is the only waste hauler allowed to perform such services in the City.

The MMC does not currently mandate that the City Council award trash franchises following a competitive process.

The Measure:
If voters approve this measure, the MMC would be amended to require the City Council utilize a competitive process to award residential solid waste franchises. Once the current contract with Athens Services expires, the City Council would be required to publish solicitations for residential solid waste franchises and then publicly open the applications submitted by interested waste haulers. The submitted applications would then be evaluated based upon certain criteria, including, but not limited to: the applicant waste hauler's experience, its technical ability to meet the obligations of the franchise, and its proposed monthly rates for residential solid waste service. With limited exceptions, the City Council could only award a residential solid waste franchise to the responsible bidder that proposed the lowest monthly rates to City customers.

The measure prohibits the City Council from renewing or extending any residential solid waste franchise in existence on the date of the November 8, 2011 election. The measure only applies to the award of residential solid waste franchises, and therefore does not apply to franchises for the collection of commercial or industrial solid waste.

Measure O requires approval by a majority of voters in the City. A "yes" vote on Measure O will amend the MMC to require that the City Council utilize the competitive process described above to award residential solid waste franchises. A "no" vote on Measure O rejects the amendment to the MMC and will retain the City's current method of awarding residential solid waste franchises.

Official Information

City of Montebello

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Arguments For Measure Montebello-O

Most contracts and franchises that are awarded by the City of Montebello are subject to a competitive bidding process. Yet, when it comes to residential solid waste collection -- one of the most lucrative contracts in the City -- the Montebello Municipal Code does not require any competitive bidding process.
Currently, Athens Services has an exclusive franchise for residential trash hauling services. This franchise was awarded without any competitive bid. As a result, Montebello residents are paying higher trash fees than other cities that require waste haulers to compete for franchises.
This measure will require waste haulers compete for future residential solid waste franchises. This ensures that Montebello residents pay the lowest costs for the best trash service. If approved, the measure would take effect once the current contract with Athens Services expires. The measure mandates that future residential solid waste franchises be advertised, so that all qualified trash haulers have a chance to bid on the contract. As part of the bidding process, trash haulers must disclose important information about the company. The measure also requires the City Council hold at least one public hearing before awarding any contract. Most importantly, the measure requires future City Councils only award the franchise to the waste hauler that proposes the lowest proposed monthly rate, unless the City Council determines that the lowest bidder is not qualified to provide the highest level of services.
A "YES" vote for Measure O means a vote for:
1. Competitive and open bidding for residential trash service;
2. The lowest costs for quality trash service;
3. Public accountability of City management and services; and
4. An end to the current monopoly of residential solid waste services that has resulted in higher costs to Montebello residents.
FRANK A. GOMEZ
Mayor Pro Tem
WILLIAM M. MOLINARI
Councilmember
CHRISTINA CORTEZ
Councilmember
ART BARAJAS
Mayor

(No arguments against Measure Montebello-O were submitted)

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Created: January 20, 2012 12:03 PST
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