Manhattan Beach residents will start paying for how much trash they throw out after the city re-signs its largest vendor contract with waste hauler Waste Management in coming weeks.
In a 4-1 vote, the Manhattan Beach City Council approved a $27.1 million, seven-year agreement with the hauler — nearly 16 percent higher than a proposal submitted by the contract’s lowest bidder, Athens Services, which also guaranteed it could keep at least 13 percent more trash from reaching landfills.
Council members grilled three bidders, including Crown Disposal, until 1:30 a.m. over prices, company track records and the rates with which each vowed to divert trash from landfills.
“If I tally up and look at them…it’s a tie,” said Mayor Pro Tem Nick Tell. “But if it’s a championship, you have to knock out the champion, and I don’t think that was done here.”
Athens’ and Crown’s $23.4 million and $23.8 million respective bids both included food waste programs not currently offered by Waste Management, with which the city has held a contract since 2002 in a sweetheart deal with below market rates. While Crown guaranteed it could keep 70 percent of the trash it collects out of landfills, Waste Management and Athens said they could achieve 57 and 55 percent diversion rates, respectively, if the city chose to include extra optional services. Without the extra services, both Waste Management and Athens said they could achieve 50 percent diversion rates.
Dissenting council Mayor Richard Montgomery said he was disappointed in having to have gone through a bid process for Waste Management to come down 4 percent from the cost it originally proposed when renegotiating its contract early last year.
“This is not about the past for me. My look was to the future,” Montgomery said. “I thought the idea was to get bids and save money.”
The decision was the culmination of an 11-month process that began when the council voted last April to accept proposals for the contract. At that time, Montgomery was the dissenting vote in a 4-1 decision to go to bid, saying that “customer service, community involvement and good price mean more to me than going back to the same circle again.”
Amid pressure from residents who argued the city must go out to bid on any contract over $20,000, the city sent out a request for proposals with stricter environmental requirements developed by the city’s Environmental Task Force in an effort to achieve zero-waste. The city was scheduled to award the contract two weeks ago, but postponed the decision after Montgomery called in sick with the flu.
Waste Management’s current $12.02 flat monthly fee for unlimited pick-up and disposal of residential trash will be replaced with tiered pricing with monthly fees of $8.65, $12.65 and $16.65 for 35-, 64- and 96-gallon trash bins, respectively, with unlimited pick-up of recyclables. Annual rate hikes will be based on the Consumer Price Index and are expected to increase 20 percent over the life of the contract.
Waste Management also agreed to bring in automated trash bins, which can be lifted onto the trucks without a worker’s touch, for sand section homes and spend 1,500 hours on public outreach about recycling. New services to be provided will include the implementation of a six-month pilot food waste program, a household hazardous waste program and mixed processing of waste that is made up of disposables and recyclables. The council opted not to have the hauler bring in new trash bins, which would have tagged on an extra $1 million to the contract’s total cost.
An overwhelming majority of residents, school program coordinators, business owners and a high school student spoke on Waste Management’s behalf, willing to overlook its roughly 14 percent price increase over the other two haulers for a standard-sized 64-gallon bin. Many residents knew their trash collectors by name and pointed them out among a dozen drivers who attended the meeting in uniform.
Senior resident Shirley Stearns said her spirits were lifted after she learned that her driver started putting her trash bin near the back of her property when he found out she was concerned about moving it herself in the dark. Stephanie McKeever showed a photo of a group of Waste Management drivers that her 4-year-old son hangs in his bedroom. Representatives of the city’s Chamber of Commerce, Grades of Green and Goodwill also supported the hauler.
“Waste Management has given exceptional service and should continue to do so,” McKeever said. “Why would the city of Manhattan Beach want to throw away something so good?”
“We see ourselves as more than a waste hauler,” said Waste Management representative Vicki Whipple. “We see ourselves as a part of the community. We hope our track record speaks for itself.”
Several business owners supported a change to Athens, whose prices for commercial trash pick-up ranged 6 to 42 percent below those of Waste Management, depending on bin size. Other residents cited Athens’ higher diversion rates as a cause for change.
“I feel that Athens is the best in savings,” said business owner Cindy Doherty. “The goal is to get the same level of service for less money.”
Some criticized the company for employing non-union workers and for allegations by groups such as the Los Angeles Alliance for a New Economy of illegal activities and unfair business practices. While Crown proved to have the most effective food waste program, many residents were concerned about the relatively small size of the company and lack of experience in residential hauling.
Some residents questioned whether Athens or Crown could achieve the diversion rates each promised. Many expressed concern over the carbon footprint both would leave in hauling wasted to far-off sites, as well the difficulty of transitioning to a new company.
Amidst praise for Waste Management, Michael Keegan, owner of Manhattan Bread and Bagel, criticized the company for failing to have a food waste program in place, for which he said he’s asked for years.
Councilmember Portia Cohen echoed his concern and questioned the direction of a company that invests more in landfills than food waste programs.
“[Waste Management] needs to invest more in clean, renewable diversion ownership,” she said. “Here’s a message from a little city. You guys need to put your money where your mouth is.”
Waste Management’s current contract expires April 30. At its March 15 meeting, the City Council will hold a public hearing, establish new hauling rates and begin a Proposition 218 process through which residents can protest rate increases. Next week, the hauler will mail card to residents for cart size selection. City recovery costs that represent 17 to 19 percent of residents’ trash bills will continue to be added to hauler costs. ER
