Los Alamitos Trashes Bid to Raise Waste Hauling Fees

Los Alamitos officials dumped a plan to raise trash rates Monday.

In a 4-1 decision, the City Council voted against a fee hike that would have increased rates by 2.57 percent for residential services and 2.46 percent for commercial services starting July 1.

Mayor Pro Tem Gerri Graham-Mejia who, in June 2010, voted against the original contract with Consolidated Disposal Services, said the expense should have been included in the original $6.5 million the city paid for the contract.  

“To me, this looks like a hidden tax,” said Graham-Mejia. “I voted “No” on the contract initially, and I wouldn’t have supported it tonight.”

Sam Hall, a representative for Republic Services, Inc., the parent company of the city’s trash hauler, said the fee increase is justified because of rising costs.

“Just like any good and service, the price does go up year over year,” Hall said. “This is the first time we’ve asked for an increase. So I humbly ask that you move forward with the item to approve the adjustment.”

The issue opens old wounds for the city, which faced controversy, criticism and a lawsuit over its trash contract.

In 2011, a group of residents sued Los Alamitos, alleging the City Council violated its own policies in awarding the contract to Consolidated Disposal Services, because it was not the lowest qualified bidder. The suit also accused three City Council members of corruption in awarding the contract to campaign donors.

A judge ruled the City Council had not engaged in corruption, but agreed on the way contracts can be awarded, thereby nullifying the contract. The city then changed its contract-selection policy in a way that allowed Consolidated Disposal Services to keep the contract.

In the wake of their court defeat, city officials took pains to avoid switching to another trash firm, so much so that CDS's own lawyer thought the process looked suspect, according to confidential memos obtained by Patch.

One of the residents who filed the lawsuit against the city, J.M. Ivler, spoke during public comments at Monday’s council meeting. He said the advocates of the initial contract had justified the decision to pay to pay the company $3 million more than other bidders so that they wouldn’t have to face rate hikes in the future.

“They’re getting $3 million more,” Ivler said. “That should be enough to cover all of their costs, and we the residents and business of Los Alamitos shouldn’t have to pay one additional red cent.”

Councilman Troy Edgar said the original trash contract was good for the city and that officials got residents the second lowest rate in the county.

“The city of los Alamitos got the best trash contract it could have,” said Councilman Troy Edgar, who voted for the initial contract in 2010.

While he lauded the job CDS had done in the community, he said as someone who had fought hard for the original contract, he “could see us being really offended” by the request for the increase.

According to the city attorney, the trash hauler had the right to ask for a rate increase and the city had a right to say no.  The contract lasts until 2015.

Councilman Dean Grose, who cast the sole “no” vote on the item, said he wanted to postpone the vote and hold a full public hearing on the issue.

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