“When it comes to the transfer station, companies working in this field could propose any number of options,” said Don Patterson, an assistant to the city manager. “What we were directed by the City Council to do is to see what the market is like and what the possibilities for the future are... That could mean negotiating with one company or three or four.
“The bottom line is that we are looking to do what is best for the rate-payers,” Patterson added. “Right now, it’s pretty open.”
Nearly a dozen private trash haulers and representatives with SWMD attended a briefing on the application process and what options are available. Some seemed to express more interest than others, with costs remaining a key factor. Some companies may not be willing to invest the money necessary to build a new transfer station, or transport trash and recyclables to another part of the county. If they do, that could include higher rates for residents and businesses to pay for the added cost, or an increase in the amount of garbage coming into the city from other cities that would contract with Santa Monica’s transfer facility.
Then there comes the uncertainty. If a private company wants to bring in more trash, they may have to apply for a new permit from the state to increase the amount of tons per day allowed to be processed and transferred to a landfill.
Currently, the facility is processing about 300 tons of trash per day, and is permitted for 400 tons. That includes refuse, recy-clables, yard waste, food waste, cardboard and bulk items from nearly 8,000 residential units, 42,000 multi-family units and 1,600 commercial accounts.
With City Hall planning to consolidate all trash hauling — commercial collection is currently spread out amongst SWMD and private firms — it is estimated that the facility would reach its capacity under the permit. To handle more trash, a new permit would need to be issued. Whoever wins the contract for operation of the facility would be responsible for securing that permit.
On top of that, City Hall, under its Sustainable City Plan, requires a diversion rate of 70 percent by the year 2010. That means of all the garbage collected, 70 percent would have to be recycled or diverted from ending up in a landfill. SWMD currently diverts 67 percent of its trash, however, those in the industry are concerned that reaching the goals set under the Sustainable City Plan could be difficult to maintain.
“It’s an interesting opportunity to see if the (Council) will pick a company that has the same values as the city or if they are just looking for the lowest bidder,” said Mayan Spaccarelli of Looney Bins, a private recycling company from Pacoima that is considering contracting with City Hall.
“It will be interesting to see if the city will want to go with some more progressive ideas that may cost the residents more,” Spaccarelli said. “I think the city has shown in the past that it is a progressive city that is willing to pay more to be aggressive when it comes to recycling. If the city and the constituents are willing to do that, you wouldn’t have to bring in more trash from other areas to cover the cost.”
Then there’s the question of whether or not a private company wants to compete against SWMD, which is operating the transfer facility today. Some feel they have the upper hand because of their familiarity of the site.
“City staff has tried to challenge our facility and whether or not we would be capable of processing this waste stream. The city doesn’t want to give this up,” said Mike Matosian, whose family owns and operates Southern California Disposal Co., a transfer station located adjacent to the city’s. “We certainly think that it makes a lot of sense to look at us very closely, sit down and have a good faith discussion to make things work better.”
Matosian believes his company, because of its location, would be the best fit for the future because it has been serving the community steadily for decades, knows the layout of the city and already has the infrastructure to keep garbage moving out of the city while a new facility could be built.
“Whenever you are competing against the city for a contract you are concerned about a fair process,” Matosian said. “I don’t know what is going to happen here.”
Patterson said the city manager’s office is hoping to receive as many offers as possible to give the council options.
As for SWMD, employees would want nothing more than to continue serving the city, said Celeste Peele, solid waste operations manager.
“We feel like any company feels, and that is that we have the best service,” said Peele, who ensured that no employees would lose their jobs if SWMD does not win the commercial pickup and transfer facility contracts. “We are going to put together a proposal that includes an environmentally friendly sustainable operation, which we do already because we are employees of the beautiful city of Santa Monica.”
Originally published in the Santa Monica Daily Press print edition on February 12, 2007. Read the original PDF.