City Releases Draft Contract for Privatized Trash Collection

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Moving forward with the idea of outsourcing trash collection, the city released a draft agreement with the staff recommended company on Monday.

Staff recommended CR&R, the lowest bidder, for the city council to consider at their Nov. 12 meeting.

The council may choose to approve, amend or reject the agreement.

Links to the 85-page draft proposed residential refuse agreement and a draft contract term sheet are available for public review on the city’s website.

The three bidders being considered are CR&R, Ware and Rainbow Disposal.

The lowest bids received appear to result in savings or cost avoidance of about $17 million over a seven-year contract term, according to the city.

The draft agreement term is for seven years, beginning March 31, 2014, with a three-year extension option.

Customers will get to choose between carts approximately 32, 64 or 96 gallons, have black lids for refuse and blue for trash and display a “granite” look. They will be resistant to weather and  ultraviolet degradation. They will be manufactured by Toter, unless the city pre-approves a change.

Bins will be provided, but garbage under 50 pounds in disposable bags or boxes or without any container will also be collected.

Unlimited “basic bulky items,” like mattresses, couches, and water heaters, will also be collected.

Customers may choose to also have a recyclables bin.

CR&R will be responsible for repair and maintenance, according to the draft agreement, which would include graffiti removal and replacing lost, stolen or damaged carts, at no charge to the customer. Replaced or repaired bins need to be available within two business days of the city or customer notice.

The draft agreement also calls for mulch give-away programs and paper shredding events.

Customers will be provided “reliable, courteous and high quality” service in a professional manner, the draft agreement notes.

If approved, CR&R would also be required to conduct customer service studies with city-provided questions to evaluate performance. The first survey would come six months after the start of collection and then at city request, but no more than once every three years.

The collection company would be responsible for the cost of mailing the survey to all Newport Beach customers. The city would then meet with the company and determine if any “future service levels to be incorporated.”

CR&R would also be required to interview all former city employees that are displaced because of the outsourcing. If qualified and offered a position, the applicant would start off being paid the same base hourly rate they had at the city.

The vehicles will be required to be no older than 10 years and must be kept in good working condition.

Trucks are also required to “be equipped with video recording that can provide a time-stamped record of service location from at least two angles, provides live video feed to Hauler’s dispatch, and with GPS that will track and record the time and location of each vehicle,” the draft agreement reads.

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