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City expects more than $25M from trash deal

OCEANSIDE — The base terms and conditions of a long-term trash hauling contract with Waste Management — that brings a $1 million signing bonus, $1.7 million in annual franchise fees, recycling revenues, and greener waste disposal services to Oceanside — was unanimously approved by City Council on Sept. 8.
A year of negotiations ratcheted up an initial payback to the city of zero franchise fees and recycling revenues — that were later nudged up to $1 million, then $5 million over the life of the contract, before formal negotiations began — to a minimum $1.7 million a year in franchise fees without increasing service rates. Over the lifetime of the new contract the city is estimated to receive $25 million to $30 million in franchise fees and recycling revenues.
“Waste Management says other cities will be salivating over this,” Councilwoman Esther Sanchez said.
“When Waste Management knew it’s a competitive process they stepped up to the plate,” Nadine Scott, an Oceanside resident said. “Esther Sanchez and Mayor Wood (who voted against the initial offers), thank you for not letting this be a no bid contract.”
All trash hauling services will continue. In addition to present services, one-container single stream recycling, curbside e-waste recycling, and compressed natural gas trucks that boast low emissions will be included in services.
Under the new contract low-volume users will have the option of using smaller 35-gallon containers, instead of the standard 96-gallon trashcans, and pay a lower fee.
An upfront payment of the $1 million signing bonus and first year’s $1.7 million franchise fee will be made immediately upon a final City Council approval in October. All new services will be up and running by 2013.
Several speakers suggested that the $1.7 million in annual franchise fees be used for rate stabilization.
While everyone agreed the contact is a good deal for Oceanside, some questioned whether trash fees, which are frozen without increases for two years, might be lower if no franchise fees and recycling revenues were paid.
“We went as far as we could go,” Joe Sloan, of Sloan Vazquez consultants, said.
Council will vote on the final contract with Waste Management in October.