Redondo Beach Weighs No-Bid Trash Contract

The Redondo Beach City Council is prepared to negotiate an exclusive, no bid, multimillion-dollar contract for trash collection with Western Waste Industries.

A majority of City Council members--Archie Snow, Ronald Cawdrey and John Chapman--said last week that they are ready to approve at a meeting Tuesday night a recommendation by Snow that the city negotiate the citywide trash contract with Western Waste.

‘It’s Legal’

State and city laws allow the city to let the contract without going to bid, said City Atty. Gordon Phillips, adding: “I’m not saying it’s wise; I’m saying it’s legal.”

The Gardena-based company holds a contract to collect residential garbage in the city, which will pay it $1.1 million this fiscal year.

It is estimated that a combined contract to haul residential, commercial and industrial garbage would be worth $18 million over five years, according to a 1986 report by City Manager Tim Casey.

The council’s only other member, Kay Horrell, said last week that she was undecided how she would vote.

Opposed by Chamber

Mayor Barbara J. Doerr, who is against awarding an exclusive franchise, can veto any action of the City Council. It takes four votes to override her veto, which would require all council members agreeing, since the District 3 seat is vacant.

The Chamber of Commerce said it opposes an exclusive contract, especially one that is negotiated without bidding.

The city generally bids contracts worth more than $5,000.

The council has discussed awarding an exclusive contract for about five years. Snow’s recommendation would authorize the city to negotiate a contract with Western Waste, a Gardena-based company, and report back to the council by July 1.

Snow, Cawdrey and Chapman said last week that they want to award the contract to Western Waste because the firm has given the city good service under its contract for residential pickup, which it has held for six years. Businesses and residential buildings with more than three units now contract directly with trash-hauling companies individually.

Bill Goedike, a vice president at Western Waste who administers municipal contracts nationally, said he was unaware of Snow’s recommendation. “My understanding is that different city officials were talking with different trash haulers,” he said.

“Most cities are not going to bid anymore,” he said, adding that most ask for proposals. In competitive bidding, the city specifically lists the requirements of a contract. In soliciting proposals, the city gives general guidelines but asks the companies to develop a recommended program.

Said Snow: “We have significant problems with waste management, and we have to deal with them. I am endeavoring to do that. I’m not afraid of the flack that comes with it.”

An exclusive franchise, he said, would give customers better service, put less wear on the streets and enable the city to have recycling and hazardous waste pickup programs.

Asked why the contract should not be bid, Snow responded: “Because state law says we don’t have to.”

No Chance to Bid

Charles Leonard, division manager for Western Waste’s competitor, Browning-Ferris Industries (commonly called BFI), said he is not against an exclusive franchise but thinks the contract should be bid.

BFI has about 60% of Redondo Beach’s commercial business, he said. “Obviously, we wouldn’t have 60% if we didn’t offer excellent service. . . . We have the majority of the marketplace and we’re not even being given a chance to bid, and the question becomes why?

In August, 1986, the city notified 14 firms then hauling commercial and industrial garbage here that it intended to award an exclusive, citywide contract by August, 1991. City officials said last week that whether the contract would be bid was not discussed.

Western Waste has had the residential contract since the city stopped providing the service itself in 1982. That contract was put to bid and Western Waste--the second-lowest bidder--was chosen because the lowest bidder could not provide all the services the city wanted, according to Cawdrey.

Western’s original contract was to expire this year, but the City Council voted in 1986 to extend it until 1991 to coincide with the city’s target date for providing an exclusive citywide service, said Ray Koke, street maintenance supervisor.

Western Waste and its executives regularly contribute to a variety of political campaigns, and have given money to Snow and Doerr.

According to campaign statements, Western Waste vice presidents Ralph Tufenkian and George Osepian each gave $150 last summer to Snow, who plans to run for mayor next year. Osepian gave $100 to Snow in September, 1984, records show.

Elected officials are only required to report contributions of $100 or more, and none of the other council members or Mayor Doerr listed donations from Western Waste or its officials.

Doerr said, however, that Western Waste or one of its officials gave her $99 during her 1985 campaign.

Chapman and Horrell said they have never received contributions from Western Waste or its employees. Cawdrey said he could not remember whether he had received such contributions. When the city, prior to 1982, hauled residential garbage--from buildings with one to three units--property owners were charged $6.25 per unit each month. When Western took over, the fee was dropped to $5.10 per unit per month. At Western’s request, the city has raised the rates three times since then and residents now pay--as part of their property tax billing--$7.58 per unit per month.