Council Asks Republic to Give "Best Bang for the Buck"

Negotiations are still ongoing between Colton and its current waste hauler Republic Services, Inc. to arrive at a contract renewal agreement after an April 1 workshop to discuss solid waste service alternatives and issues. Colton has been in negotiations to renew its contract with Republic Services since August of last year. Republic's contract with the city expires next June. Currently Republic is offering a 10-year base contract that includes a five year initial contract extension and a five year renewal option, solid waste hauling services, distribution of a landfill rebate of $4.24 per ton, an annual $120,000 administrative fee, a 2 percent rebate for utilization of Republic's internal disposal network, a part-time recycling coordinator and a food waste recycling program. Waste rates this year are scheduled to increase by 4.25 percent from 2014 rates due to the closure of the Colton landfill. In 2015, under the currently proposed basic contract and with the anticipated 4.25 increase, residential customers would pay $23.79, a 97 cent increase; commercial customers would pay $134, a $5.46 increase; and industrial customers would pay $483.14, a $19.70 increase. Additional services could also be included but would increase base rates, including a low-income program that would provide a 10 percent discount to qualifying customers, but city staff said at this time they did not know if the city could finance such a program. Other additional services are road impact, tree trimming, street sweeping and a roving cleanup crew. A "fully loaded" contract, including all of the above services, would raise rates by 9.98 percent; residential customers would pay $26.43 a month, commercial customers $148.85 a month and industrial customers $536.67 a month. Several councilmembers said they would not support rate hikes above the anticipated 4.25 percent increase and urged Republic Services to amend their contract proposal to include some additional services at no extra cost to the base rate. "This is not about getting rid of Republic," said Councilmember Isaac Suchil. "This is about getting the best rate for our services. Residents don't want to see increases for street sweeping, tree trimming or road impact. Those should be included in the base contract." Mayor Pro Tem Frank Navarro said he wanted to see a contract that would give the city "the best bang for our buck." Suchil urged the council to consider requesting bids from other waste haulers if Republic is unable to offer a base contract that includes street sweeping, tree trimming and road impact for a $23.79 residential base rate. Councilmember Luis Gonzalez agreed. But Councilmember David Toro expressed concern over the possibility of not renewing Republic's contract, which he said would cause a "trickle-down effect" in the city's economy. Toro said because Republic Services employs several Colton residents, patronizes a Colton fuel station to fill up its trucks and houses a warehouse facility in Colton - generating property taxes, losing services from Republic would hurt the city. "Instead of trying to save one dollar here, one dollar there, we need to look at what we're going to be losing," he said. "That's almost half a million dollars Republic brings to the city." Councilmembers also expressed a desire to quickly come to a contract renewal agreement, and Mayor Richard De La Rosa directed staff to negotiate a contract that includes additional services at no extra cost to the base rate. "The next time the issue is brought up to the council it will be for an action item to sign the contract," said De La Rosa. "Or, if Republic can't give us these services, you need to tell us before then so we can go to (request for proposal)."