The Anaheim City Council is set Tuesday night to award a 20-year contract to waste hauler Republic Services, which has served the city since the late 1940s.
Republic is just finishing a $20-million remodeling of its 250,000 square foot materials recovery facility. It is seeking a 13-year extension to its current seven-year contract, partly to justify its investment in the plant.
The facility helps Anaheim meet a state mandate to divert 50 percent of the city's waste away from landfills.
Residents will be paying $19.53 per month for curbside trash pickup under the new contract. The rate won't increase the first year, but afterward it will be increased annually based on the U.S. Consumer Price Index.
The waste contract did not go out to bid, but sources familiar with the waste hauling business say that's not unusual. If the city were to contract with another waste hauler, that company would probably have to build another materials recovery facility, which would mean an increase in prices, said Dean Ruffridge, senior vice president at the waste hauling firm CR&R.
"Just imagine the investment. The rates would actually go up," Ruffridge said.
Republic also pays the city a host fee that amounts to at least $1.2 million in revenue for the city, according to a staff report. The city will also be receiving a one-time contribution of $2.5 million for infrastructure improvements.
The waste hauler will also be doing an additional $20 million in renovations, said Ric Collett, Republic Services general manager. The next remodeling will help the city increase to 75 percent the amount of trash it diverts from landfills, Collett said.
The Taormina family controlled the firm, formerly known as Taormina Industries, until it merged with Republic in the 1990s. Bill Taormina, a high-profile businessman in the city and generous contributor to City Council members' campaigns, is still heavily involved in the business.
"My family has always been very involved in the city ever since the late '40s when we came here. I'm basically focused on everything I can do to make the city a better place," Taormina said.
Correction: A previous version of this posted misstated the amount Republic Services had invested -- and is supposed to invest -- in its materials recovery facility. We regret the error.
— ADAM ELMAHREK