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Home My WebLink About20 - Residential Refuse Collection RFP - CorrespondenceBrown, Leilani From: Karen Clark [karen-clark@cox.net] Sent: Friday, September 06, 2013 5:24 PM "RECEIVED AFTER AGENDA To: Dept - City Council; Brown, Leilani; info@cdmra.org Subject: Trash Outsourcing PRINTED:" Follow Up Flag: Follow Up Due By: Saturday, September 07, 2013 8:27 AM Flag Status: Flagged Dear City Council: I am concerned with outsourcing for several reasons. I think the current service is fine and don't think we pay too much. But my biggest concern is for our good, long -serving city employees who will be displaced, presumably with workers who are paid less and have few if any benefits. As a wealthy city, I think we should be embarrassed, even ashamed, to try to save a few nickels if it will result (as I expect it will) in making the less affluent of our citizens even poorer, even to the point that they can no longer support their families, so we wealthier people have a slightly larger share of the pie. Karen H. Clark 2701 Ebbtide Rd. Corona del Mar Karen-clark@cox.net Brown, Leilani From: bobnmel2@aol.com Sent: Saturday, September 07, 2013 8:12 AM To: Dept - City Council; Brown, Leilani; info@cdmra.org Subject: Trash Outsourcing Follow Up Flag: Follow Up Due By: Saturday, September 07, 2013 8:27 AM Flag Status: Flagged We have lived in Corona del Mar for over 25 yrs and would like to keep the current trash pick up the way it is with the city workers. They are friendly, efficient and always do a good job and I believe that it is worth the extra cost of maintaining the city workers versus contracting out the service. We know what we are getting and feel it is money well spent from the city budget. I have noticed there are contracted workers picking up trash along Coast highway and the level of service is just not the same, I think you get what you pay for. In this economy everyone needs their job and I think the city workers have proven their worth, they are a part of the community. I would urge you to vote to keep the trash service with the city workers. Thank you, Bob and Melinda Keeler 2690 Point del Mar Corona del Mar Brown, Leilani From: Barbara Everson [beverson1 @gmail.com] Sent: Saturday, September 07, 2013 8:53 AM To: Dept - City Council; Brown, Leilani; info@cdmra.org Subject: Trash Outsourcing Follow Up Flag: Flag for follow up Flag Status: Flagged Please keep our current system of trash pick-up even if it means increasing our bills. Barbara Everson Brown, Leilani From: Michael Pilsitz [mpilsitz@sbcglobal.net] Sent: Saturday, September 07, 2013 11:27 PM To: Dept - City Council; Brown, Leilani; Corona del Mar Residents Association Subject: Trash Outsourcing Follow Up Flag: Follow Up Due By: Saturday, September 07, 2013 11:42 PM Flag Status: Flagged The following is a copy of a message previously sent to Nancy Gardner: No outsourcing of trash pickup! As a longtime resident I've noticed outsourced city services - tree trimming and street sweeping - have resulted in downgraded service and mediocre results. All city employees are trained in customer service; I know, my wife (now retired) was a 20 -year employee of NB, working in the library. These out-of-town businesses just work as fast as they can with crews of indifferent, often unskilled, laborers. l have had to call some city offices to have followup work done properly. Can't take the place of caring, careful, efficient city workers. Our refuse collectors are professionals and Newport Beach residents will suffer if they are replaced. Sincerely, Mike Pilsitz As a followup, I ask you to consider how much you could save by outsourcing all city services, not that I recommend that measure. This has to stop. What are we, Costa Mesa? Brown, Leilani From: Steve Prough [steveprough@roadrunner.com] Sent: Monday, September 09, 2013 8:30 AM To: Dept - City Council; Brown, Leilani; info@cdmra.org Subject: Trash Outsourcing Dear Ladies and Gentleman, One of the great resources for the City has been the team that works within the Trash Collection Group. They are extremely helpful, personable and hard working. In measuring compatible costs the discussion continues to be the cost of new equipment. Please remember that proper accounting has the cost amortized and spread out over the life of the equipment. That is what the bidders have done or will do to arrive at their price. A proper comparison and analysis needs to consider those assumptions. The City has in place a capital improvement budget that I understand is fully funded to cover the cost of the new equipment as needed. The City manager and Council has the responsibility to disclose how they plan to spend the money already in the City Treasury designated for trash collection. Will this money be used to cover the cost of expansion and high cost furniture in our new City Hall? Will this money to be used to fund the proposed exorbitant salary increases for the senior members of the staff as we fire City employees who provide a great service to our community? One discussion point that keeps be mentioned is that the current staff will be offered jobs by the bidder. Common sense would tell you that will never happened. It would be interesting to see an accounting of how many former City employees are hired and how many City employees are fired with families to feed. Last studies showed the acceptance rating of this department at 95%. The amount of savings measured against the number of households of the City that this Department serves does not justified the decision. Thank you for listening. Stephen W Prough 3rd generation resident of Newport Beach. Brown, Leilani From: bobpastore [bobpastore1 @gmail.com] Sent: Monday, September 09, 2013 2:51 PM To: Dept- City Council; Brown, Leilani; info@Cameohoa.org Subject: Letter of Support for Current Refuse System Honorable Council Members, I am contacting you to express my support for the current refuse collection service provided by Newport Beach city employees. As a resident, I am concerned that the City Council is considering outsourcing this service. The current effort provided by the City refuse workers not only meets the needs of the community— their work enhances our life style. These workers provide professional and courteous work in our neighborhoods and allow for the residents to have clean and safe neighborhoods. As a resident, I support keeping this service operated by the City. As a taxpayer, I appreciate that the current collection service is delivered at a cost that is one of the lowest in Orange County and lower than any of the neighboring cities. The competitive cost of our current traditional service means we, as residents, receive the same excellent service at a low cost. As a Corona del Mar homeowner I am expressing my support to keep Newport Beach refuse collection services in-house. Thank you, Robert A. Pastore 4727 Surrey Drive Corona del Mar Rieff, Kim From: Mulvey, Jennifer Sent: Monday, September 09, 2013 4:31 PM To: Rieff, Kim Subject: Refuse Issue Gentleman in Spyglass (no name) who does not want to change because he feels our workers are excellent people and we should not do this to them. hmni f a Malv¢y Administrative Assistant City Clerk's Office 100 Civic Center Dr, Newport Beach, CA 92660 949-644-3005 Rieff, Kim From: Sent: To: Subject: Attachments City Clerk's Office Tuesday, September 10, 2013 10:51 AM McDonald, Cristal; Mulvey, Jennifer; Rieff, Kim FW: Input for today's Council meeting PROFITIZATION OF TRASH COLLECTION.docx From: Jamshed Dastur Sent: Tuesday, September 10, 2013 10:50:43 AM (UTC -08:00) Pacific Time (US & Canada) To: City Clerk's Office Subject: Input for today's Council meeting Attached are my comments on the issue of Privatizing Trash Collection in Newport Beach, which is on the agenda for today's City Council meeting. Thank you for distributing it to the Council Members and some copies for the public. Jamshed Dastur Balboa Island 949-673-4078 PROFITIZATION OF TRASH COLLECTION Sitting on your $20,000,000 thrones (the new City Hall cost per Council Member) looking down on your loyal subjects, do you really want us to believe that elimination thru PROFITIZATION of an efficient and well liked public service is to save some money? You spent almost $100,000 to hire a consultant to develop a lengthy and complex report with all kinds of gibberish, concocting a fairy tale regarding millions of dollars in savings. The savings are contrived by selling off city property, by leasing out our transfer facility along with its excess unused capacity, like an entity going broke. The figures are further contrived by using half the inflation rate guaranteed under the proposed seven year contract. And finally you achieve your real goal — have the current hard-working, loyal employees take a 27% cut in basic wages and an unknown larger reduction in benefits, if they are able and willing to go to work for the new operator. Their current base wage is $27.73 an hour whereas the two operators currently under consideration pay $20.35 an hour. Using the City's own numbers, here are the facts. Under Plant (the primary basis for comparison) which maintains the current level of service, the calculated reduction in cost is $14,000,000 and not the much bandied around number of $17,000,000. Without the one-time revenue from selling trucks and the associated reserve funds, the savings under Plan 1 are reduced to $8,000,000 over seven years. The full capacity of the transfer station is 300 tons per day of which less than 50% is currently used. An adjustment for this false saving of $3,000,000, allowing the new operator access to this additional unused capacity would bring down the projected savings to $5,000,000. If inflation related cost adjustment is calculated at the maximum permitted under the contract (5%) instead of the arbitrary 2.5% used in the calculations, the savings would be further reduced to less than $3,000,000 over seven years. Furthermore, the contract allows for cost adjustments above 5% for extra -ordinary circumstances which has not been factored into the analyses. If history is any guide, extra -ordinary circumstances over seven years will wipe out the remaining projected savings. So the end result is that the current City employees will be forced into working at 27% reduced wages (if at all) and with considerably reduced benefits whereas the citizens of Newport Beach will lose what they consider to be part of their beloved extended family. The City Manager pompously proclaims, "The City Council is COMPASSIONATE when it privatizes". What utter arrogance! Does the City Council consider City Employees to be welfare recipients or indigents in need of charity? Would any of you Council members consider dissociating yourself from this comment and offer an apology to the City workers? Or is this the norm when you sit on a $20,000,000 throne? I urge the City Council to digest these phony numbers and reject this course of action. Privatization makes sense in some instances. In others, like in this case, it is a heartless ploy to drive down the wages and benefits of loyal diligent workers. Jamshed Dastur Balboa Island 949-673-4078 Refuse Proposal Calls Calls to the Mayor prior to 9.10.13 Lori and Evelyn Leonelli are against the refuse proposals Gentleman said he would like to keep what they have Mrs. Weber said she would like the Mayor to look at the budget and make a decision on the savings Diane Fullen said she enjoys service and thinks it should be put to a vote. 9.10.13 John P. Strahl and his wife are against privatizing the refuse collection. They think are refuse collectors do a great job. Brenda & Frank Wilfert love the current refuse service. Gordon said he really appreciates the service he has now. He said it is good PR for the City because the refuse service is well liked. He said it is all positive. Gary Dial said leave trash collection alone. Works perfectly. Rachel Maguire said she supports the refuse pick as is and that it should be put to a vote. Honorable Mayor and City Council Members: We have been residents of Newport Beach since 1963. It is a wonderful city to live in, and we appreciate your hard work on our behalf. However, it has become a concern for us that the City is preparing to outsource the Sanitation Department. The hard-working men who have collected our trash for years are doing a great job, and as pointed out, Newport Beach currently has the lowest cost per household of any city in the area. It seems unlikely that the projected "cost savings" will save our city money in the long run, but such a change could well diminish the level of service. Sincerely, Elisabeth and David Cook 420 Vista Roma Newport Beach, CA September 10, 2013 Newport Beach City Council 100 Civic Center Drive Newport Beach, CA 92660 RE: Solid Waste Proposals "IF IT'S TOO GOOD TO BE TRUE - IT'S PROBABLY NOT TRUE!" The above proverb correctly sums up the proposals from CR&R and Ware Disposal for the City of Newport Beach. Having twenty-nine years' experience in the solid waste industry and as a 37 year resident of the City of Newport Beach, I can, without any hesitation, share with you my strong belief that this current recommendation from HF&H is not only incomplete, but flawed. The analysis of the proposals (52 pages of information) was conspicuously missing information that was submitted by all the responding firms. This information would have clearly reflected that anticipated "Employee and Truck Operating Cost Detail". Instead, the report you received, omitted this critical chart - which would show the anticipated expenses by the haulers to give our community the service "equal to or better than the current service levels". There is no "magic" when it comes to the expenses for fuel, Insurance, landfill disposal and the vehicle capital expense. These costs are the same for all the haulers, in fact we are all required by the Flow Control agreements the County of Orange to landfill all our waste within the County system at the same rate. That begs the question — How can CR&R be $13,556,000 less than the actual costs of the current operation? (Path 1) The only answer is a massive reduction in the wages and benefits paid to their drivers, the anticipated level of service to the residents and the quality and extent of preventative maintenance to the vehicles operating within Newport Beach. There are no other areas to make such dramatic cost reductions. To further support the fact that the council is not being given the entire back-up information, note that on page 12 Table 4 "Average Hourly Driver Wage" the figures only reflect the basic hourly wage. All the haulers were required to not only submit this information, but also the Healthcare, Retirement and other Employee Benefits. This information was somehow deleted from your council analysis. HF&H is quality firm that is capable of exceptional analysis, but one has to question why so much relevant information was omitted. Nowhere in the analysis was the annual net expense compared to a Newport Beach City Council - 2 - September 10, 2013 monthly cost per unit. This should have been a critical point of evaluation for the council to consider. Based on the estimated number of residential units and the proposed operating costs, CR&R's net residential rate for Path 2 is approximately $10.16 per month. When compared with a number of cities served by CR&R in Orange County—that rate is half the cost! In almost every RFP analysis, comparative rates are included as part of the evaluation. Why were they omitted in this HF&H analysis? As a resident of Newport Beach, I have in the past, supported out -sourcing our solid waste collection, but never at the price of compromising the quality of service we now enjoy. This quality service can be directly attributed to the current employee group and the supervision they receive. An even bigger issue would be that of the safety of our community. We all know when the quality of drivers, lack of supervision and the extent of preventative maintenance are slashed to "low -ball" a bid; the level of safety is at risk. One final thought; two of the most respected haulers in Orange County were "excluded" for consideration in this final analysis - Republic Services and Rainbow Disposal. I think it is fair to say that both of these quality firms were extremely motivated to submit as competitive pricing as possible to be successful in this RFP process. Their Path 1(apples to apples comparisons) to the current operation reflected the cost to give the City of Newport Beach a level of service which residents now enjoy and the safety they expect. These two firms anticipated costs (as reflected by the HF&H analysis) were on average over $9,000,000.00 greater than the proposed pricing by CR&R! That fact alone would bring into question the validly of the low -ball pricing of CR&R and Ware Disposal. I would respectfully request that the council defer any action on this RFP until all the information is clearly presented and a complete analysis is submitted for council consideration. Newport Beach is a class community that deserves the highest level of service, by the best drivers available and at the highest level of safety! Respectfully Submitted, Dave Ault Brown, Leilani From: Corona del Mar Residents Assn [Info@Comra.org] Sent: Wednesday, September 11, 2013 10:01 AM To: Dept - City Council Cc: Brown, Leilani; Kiff, Dave; Debbie Stevens Subject: Resident Survey - Trash Outsourcing Attachments: Survey Trash Coriclusions.pdf Attached this our report which recaps the Corona del Mar resident survey conducted in April 2013 as part of our Spring newsletter mailing to over 6,300 residential households in Corona del Mar. We had intended to present this information at the September 10 City Council meeting, but given the tone of the staff report, council's opening remarks and the number of people who wanted to speak on this issue, we decided to deliver this via email instead. We do ask that our report be included in the public record along with the other public comments from last night's meeting. The summary of our findings (see page 4 in the attachment) is: SUMMARY In spite of the lack of specific cost data at the time of the survey, a higher percentage of respondents preferred outsourcing with the option to recycle at home. Those who live in the Village preferred this option at a slightly higher rate than those who live in CdM planned communities. Regardless of which option was chosen, 68% indicated that preference for their choice was strong. Residents, without exception, strongly support our employee haulers, and applaud their service, commitment and personal connections with their "customers". Many respondents felt disadvantaged at not having cost information on which to base their opinion. They also felt that not all options utilizing our existing municipal workers had been adequately addressed. We concur with council members' comments that there is still work to be done and information to be shared (Gardner, Hill, Petros). The concerns that Council Member Selich shared reflect that of so many in this community. The vote, itself, demonstrated that Council was significantly divided on whether this action was premature in face of additional fact gathering and data analysis. Now that the decision to outsource has been made, we urge you to diligently and thoroughly review the bidders' contracts, their service history as defined by their actual customers (not the cities), and provide more clear and concise information about costs and services to the public as part of an ongoing process to build the public's trust as we move forward. As demonstrated by the show of residents and their comments last night, there is much work yet to be done in this area. We request that staff attend our October 17th Board Meeting (7:30 am Oasis #5) to specifically address these concerns. Thank you. .goa,- -Of Pi-rec `OYS 949.719.9390 P/F 1 Corona deCMar Residents .Association PO Box 1 500 1 Corona del Mar, CA 92625 1 Please visit our website at: www.cdmra.ora 6ronc del Ciwar RESIDENTS ASSOCIATION BACKGROUND TRASH OUTSOURCING SURVEY cos APRIL 2013 ca Corona del Mar Residents Association (CdMRA) CdMRA was created over 25 years ago to provide a unified voice on issues affecting Corona del Mar residential neighborhoods (composed of approximately 6300 households), and it utilizes a variety of communication tools, educational workshops and outreach programs to accomplish this goal. Our Bylaws require us to keep our membership informed of issues that have a direct impact on the quality of life in Corona del Mar, and determine whether community consensus exists on issues which potentially challenge that quality. Working with our city's leadership and staff, we are committed to protect, preserve and improve the quality of life for those who call Corona del Mar their home. METHODOLGY The Survey Process To determine whether there was a community consensus on the topic of outsourcing our trash service, the Corona del Mar Residents Association conducted a survey on this topic in our Spring 2013 Newsletter. The survey went to all 6300+ residential addresses in Corona del Mar, and we estimate that approximately 6100 households of those households are serviced by our municipal trash haulers. It was also made available on our website to capture electronic responses. Electronic responses were validated to insure respondent was a Corona del Mar resident. To insure we conveyed the correct information about the project, we invited Dave Kiff, City Manager, to write the informational article which preceded the survey. The article took up 1 %2 pages of our six-page newsletter. The single -question survey had a three part answer, asking residents to choose one of the three options discussed in the article: retaining the current municipal system, outsourcing with recycling done at the collection facility, or outsourcing with the option to recycle by household. We asked how strongly they felt about their preference and left an area for open-ended comments. This survey was put together by one of our long-time members with a Market Research background and reviewed by our city manager. A copy of the city manager's article and the survey question is attached as Exhibit 1. Page 1 cos CdMRA I P.O. Box 1500 1 Corona del Mar CA 92625 1 Info(a)_cdmra.org I www.cdmra.org cos Oil a�o are del C>cr RESIDEN`I'S ASSOCIATION The City Outreach Process TRASH OUTSOURCING SURVEY cis APRIL 2013 ca In June, several of our Board members were invited to an informal chat with our City Manager, Director of Municipal Operations and Council member Gardner on the topic of trash outsourcing. We shared some of the initial survey comments and concerns with city staff. Staff shared their comments and goals for maintaining service levels, offering a recycle option and reducing costs associated with labor, injuries and capital investment. Staff also indicated that this meeting was just the beginning of a series of community outreach meetings that would be conducted prior to finalizing their recommendations to council. Following that meeting, we invited staff on several occasions to come and talk to a larger audience of Corona del Mar residents and Board members, and each time the invitation was declined. Their position was that results had to be presented to Council before the public. The assurances that collecting public input through targeted outreach opportunities never materialized. We believed that resident comments were an important part of the process, providing insights that could be used as part of staff's evaluation process. Therefore, we continued to report on this topic to our members, and from time to time members would email or otherwise contact their council members with their thoughts, concerns and preferences. Page 2 crs CdMRA I P.O. Box 1500 1 Corona del Mar CA 92625 1 Info(dcdmra.org I www.cdmra.org cg &ron f del C. /VICI%f RESIDENTS ASSOCIATION QUANTITATIVE FINDINGS TRASH OUTSOURCING SURVEY cis APRIL 2013 ca The response rate, based on the 6100 household sampling, exceeded the requirement for a 99% confidence level, +/- 10 points. We can therefore conclude with high confidence that these percentages would be consistence across all of Corona del Mar households. • 34% of the respondents preferred to keep the existing system • 16% preferred outsourcing but no change to our collection model • 47% preferred outsourcing with an option to recycle at home The number of responses were fairly evenly split between CdM Village households and planned community households. Outsourcing with the recycle @ home option was slightly more preferred by those who live in CdM Village than those in planned communities: • 54% of Village households preferred this option • 46% of planned community households preferred this option The respondents' preference profile for the choice they made was: • 68% had a strong preference for their choice • 18% had a mild preference for their choice • 12% selected no preference Page 3 cis CdMRA I P.O. Box 1500 1 Corona del Mar CA 926251 Info(cDcdmra.orq I www.cdmra.org cq firma del C�� War RESMENTS ASSOCIATION QUALITATIVE FINDINGS TRASH OUTSOURCING SURVEY cs APRIL 2013 ca The open-ended "comments" question yielded some interesting results. 1. The overwhelming concept that came out of the comments is that people are generally happy with the existing trash service. The support for the current workers is impressive. In the case of our current trash service, there were essentially no complaints which means the City is doing a great job and customer satisfaction is high. This lead to a lot of comments that basically said "if it's not broke, don't fix it." 2. At the same time, there were a number of comments that supported recycling or wanted to see additional recycling within the City. Some of the people leaving comments seem to imply that the City doesn't do a good job at recycling because residents aren't required to separate out their trash. 3. Many commented that cost data were needed to determine which option would provide true cost savings. They felt it was difficult for them to choose between the options when so little was known about the costs. 4. They also felt that the analysis of this proposed change was rushed and might not have considered all options, such as a hybrid of our current municipal service which included automation and home recycling. A redacted copy of respondents' comments is attached as Exhibit 2. SUMMARY In spite of the lack of specific cost data at the time of the survey, a higher percentage of respondents preferred outsourcing with the option to recycle at home. Those who live in the Village preferred this option at a slightly higher rate than those who live in CdM planned communities. Regardless of which option was chosen, 68% indicated that preference for their choice was strong. Residents, without exception, strongly support our employee haulers, and applaud their service, commitment and personal connections with their "customers". Many respondents felt disadvantaged at not having cost information on which to base their opinion. They also felt that not all options utilizing our existing municipal workers had been adequately addressed. Page 4 ce CdMRA I P.O. Box 1500 1 Corona del Mar CA 926251 Info(cDcdmra.orq I www.cdmra.orq cis are del C�-Wa7 RESIDENT -S ASSOCIA'T'ION TRASH OUTSOURCING SURVEY crs APRIL 2013 ca EXHIBIT 1 CdMRA Spring Newsletter Trash Article & Survey Page 5 m CdMRA I P.O. Box 15001 Corona del Mar CA 926251 Info(o)cdmra.org I www.cdmra.org ce WHY TRASH, WHY NOW? By Dave Kiff, City Manager Sometimes I get out and do physical work with some of our City staff members. Twice now, I have worked with our dedicated (and fun) trash collectors. I lasted just one three-hour shift each time, begging off on the second shift "because I had a meeting." I really was just tired and sore. I was struck by these things: • What a great service we provide. We collect almost everything. Our employees know many residents by name; that certain customers may need assistance; and sometimes they even know if a customer is on vacation. • How intricately they maneuver through some of our most narrow streets and alleys. • How physically impactful the job is — on backs, hips, knees, shoulders. • How sincere some residents are about trying to recycle. Several folks would put out neatly -twined stacks of clean newspapers next to the trash cans. • How messy our system can still be. Alleyways, streets, and yards end up with a lot of trash because of lost lids, birds that get in cans on trash day, and "pickers." Corona del Mar residents have asked why the City is even considering changing such a well -liked system. Here's why: • State law says we need to divert 75% of our waste stream from landfills by 2020. The residential waste stream today has about a 40-45% diversion rate. The commercial stream is better, (almost all material from a construction site, for instance, can be recycled) but that can vary based on the year and the state of the economy. • Our trash trucks are getting old. Yes, we have saved up resources to replace them. The new ones are about $250K a piece and are fueled with Compressed Natural Gas (CNG). • A good number of our 22 refuse collection employees are at or near retirement age. It doesn't mean they will choose to retire, but it means they could (so there's an unknown as to our future staffing levels). • Our City government still has a pension cost problem. Our unfunded pension liability (what the City owes to the State pension fund if paid today in one lump sum to cover all of the promised pension benefits) is still big. Too big. The best way to tackle the long-term pension problem is to reduce the overall City payroll. It would be great if I could switch everyone (including myself) to 401K -style plans — but that's actually against the law in California. Go figure. • Some people in town want to recycle. They don't like it when I remind them that our recycling program involves people picking through our trash stream at a Materials Recovery Facility (MRF) where much of the recyclables arrive ruined by being mixed in with dirty trash. • Other residents are getting older, and wanting to know why we don't allow cans with wheels. In light of the above, the City Council has asked us to examine our system and to ask private companies to respond to at least two alternative proposals for trash. As I see it: Path #1 would mirror the current system (take nearly everything, no recycling, same cans, and put out as many cans as you want). Path #2 would be what I'd call "Automated Collection — But No Big Ugly Cans and You Don't Have to Recycle." With this path, customers would choose between small, medium, and large carts (the small ones have a smaller footprint than the Ace Hardware round cans). They could receive and put out as many as they wanted. Refuse collectors would still take nearly everything. And you could — if you wanted - ask for one clean recyclable cart (pick a size) and it would be collected separately with the recyclables kept clean. The big change would be that the carts allow a refuse collector to pick the carts up mechanically instead of getting outside to lift cans themselves. Automated service like that can serve 1,000 households a day, instead of the 400 households that manual collection serves. I've tried to summarize the most frequent questions I get about this issue: 1. Would a new company hire our current refuse collectors? We can require that companies offer jobs to our current staff. 2. Is this all about cost savings? Not all, but certainly some. Some of it is about meeting the 75% diversion goal. Some of it is about even better service. If we could guarantee the same quality of service or better at less cost, doesn't it make sense to look at it? 3. How do you know there are any cost savings at all? We don't know for sure. We won't know until proposals come back from companies. We do know that a study we had done in November 2012 said that cost savings could be more than a million a year, or costs could actually be higher, depending on the service model. 4. Could we contract out the same exact service we have today — our cans, any number of cans, take everything we put out like bags and big cardboard boxes? Yes. 5. How do you ever guarantee the same or better quality of service? The right contract terms do that. You write customer service standards into the contract, and require adherence. If a company doesn't succeed, you end the contract and consider other companies or take another look at the in-house model. 6. My garage or side -yard doesn't fit the big automated can. The automated carts used to be big, but now they're smaller. The carts are either 35-, 65-, or 95 -gallons. The 35 -gallon cart, even with its wheels, has a smaller footprint than the cans purchased at the local hardware store. 7. 1 don't want to recycle. My home isn't set up for separating trash inside. That's what's nice about Path #2. Recycling is voluntary. In Path #2 (described above), a household could choose one "clean recyclables" cart or they could pass entirely and keep with one or more trash only carts. 8. Doesn't recycling mean those many milk -crate bins that are ugly and messy? They used to, but not anymore. The most common system now is one cart per home that holds all of your clean recyclables — plastics, glass, cans, paper, cardboard, more. 9. What is "better" service than today? Better service might be more free bulky -item pickup days, community "shred -it" days, battery and paint disposal days, even a "concierge" service for the elderly or disabled where a company gets your trash cart from your sideyard, dumps it, and puts the cart back. 10. How can a "one size fits all" approach work for such a diverse place? It won't. Even if the community were to go to an automated system, it probably can't be fully automated everywhere. Where you have narrow streets or alleys, the semi -automated model might be best. In this model, a refuse collector gets out of the truck and moves the carts to the back of the truck, where a small arm "flips" the trash into the truck. At the very least, this saves the refuse collector's back. 11. Could we have an automated service that the City ran and staffed? Yes. 12. How does the cost of new trucks factor in? We have saved up funds in our reserves for buying new trucks. A new company coming in would be expected to provide its own trucks as a part of the city contract. And yes, the company would consider truck purchase, maintenance, fueling, and replacement in the amount they bid. 13. What does an outside vendor do that could be more cost- effective? In an automated system, it's picking up 1,000 homes a route instead of 400. In a straight comparison with our own manual service, it is two things primarily — the economies of scale associated with serving Newport Beach along with other cities they might serve (maintenance, management, truck purchases, staffing flexibility, more) and the fact that most employers no longer offer defined benefit pensions. This is a hard issue to discuss, and many folks are concerned about it. The feedback to date has been very helpful and thoughtful, with most people recognizing that being good stewards of the City and anticipating the 75% diversion future means that we have to look carefully at all that we do, including a service as well -liked as refuse collection. As always, your comments back to us are welcomed. i` CDMRA RESIDENT SURVEY Over the course of the year, our members contact us by phone and email with questions and concerns on a variety of topics. As you might have guessed, we have been getting many questions and comments about our trash collection system. We asked Dave Kiff to write the above article for our members. And one of CdMRA's long-time members volunteered to work with Dave to put together a survey question that we could include in our Spring Newsletter. We want to thank both Dave and Tom for taking the time to respond to our request on this important topic that is on everyone's mind right now. Now that you have read Dave's article above, won't you take a few minutes and respond to the following survey. You have a couple of options: Take the survey on our website at www.Comra.org Email your responses to Info(cDCdMRA.org Mail your responses by USPS to CdMRA at PO Box 1500, Corona del Mar 92625 Results will be tabulated and reported on our website and in our next members -only email newsletter. Please respond no later than April 30, 2013. THE QUESTION The City needs to reduce payroll costs in order to reduce pension liabilities. One way to do this is to transfer weekly trash collection from the City to a private company ("outsourced"). At present your trash is picked up whether or not it is in a trash can. A private company may be able to pick up trash the same way. Another way might allow you (but not require you) to sort materials for recycling. Savings from outsourcing will be used to maintain other important City services, and for infrastructure such as roads. There are three options under study and we would like your opinion. YOUR ANSWER Which would you prefer? CHECK ONE BOX ONLY: [ ] The present system: Managed by the City: cans OK but not required. No savings for the City. [ ] Outsourced: Outsourced but identical to the present system: cans OK but not required. Savings for the City [ ] Outsourced, twin tracks: Outsourced, trash in wheeled carts (small, medium, or large), with voluntary recycling (sorting) and green -waste separation (e.g. garden rubbish); bags and other containers such as cardboard boxes set beside the carts will also be picked up. There will be two trucks picking up on the same day. Greater savings for the City. [ ] No preference If a preference, why? Is yours a strong or a mild preference? [ ] Strong preference [ ] Mild preference One response per household please. 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