Redlands trash contract could net $5 million in five years

REDLANDS, May 21, 2009 (The Press-Enterprise - McClatchy-Tribune Information Services via COMTEX) -- RSG | Quote | Chart | News | PowerRating -- The city has agreed to a contract for waste disposal at its California Street landfill that officials said could bring in about $5 million over the next five years.

The Redlands City Council on Tuesday voted 3-2 to approve the contract with Republic Services to accept 75 tons of outside waste per day for the first 180 days and a minimum of 125 tons per day after that, with a maximum of 175 tons per day.

Councilmen Jerry Bean and Mick Gallagher voted against the contract.

Bean expressed concerns about giving up capacity in the landfill and agreed with a few residents who objected to the contract because it did not go out to bid.

"The idea of having sole-source vendors ... is not the thing that (brings) lower prices for the city," Bean said.

Gary van Dorst, the city's qualify of life director, said Republic and Burtec were the only haulers in the immediate area that could bring in that much tonnage already sorted and processed.

Staff requested proposals from the two haulers, but Burtec declined, van Dorst said. The firm didn't give a reason, but van Dorst said he thinks it was because the company is the county's landfill operator.

Gallagher said he felt the city should be aiming at a tipping fee of $35 to $38, instead of the $27.20 in the agreement..

"If we sell out at $27, I think we're making a mistake," he said. "It's an asset where we can get more."

The other council members disagreed.

Mayor Jon Harrison called the landfill a long-term asset and said he didn't think city staff would bring forward a proposal that would jeopardize it in any way. In five years, there may be other waste diversion methods the city could use, he said.

The council considered voting on the contract May 5, but postponed it to make some clarifications.

City Manager N. Enrique Martinez said the city lost $20,000 in revenue by not voting on the contract earlier. While not every decision should be based solely on money, the city is facing tough budget times, he said.

Mayor Pro Tem Pat Gilbreath said she struggled with the decision, citing concerns about doubling the waste coming into the city and Redlands becoming dependent on the annual revenue and not wanting to end the contract in five years.

However, when it was time for the vote, Gilbreath supported the contract.

"I am not prepared to give up $1 million in revenue," she said.

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