BLUE BARREL PACT CLOSER FIRM HOPES FOR FLEXIBILITY WITH RECYCLING GOALS.

Byline: Heather MacDonald Staff Writer

SANTA CLARITA - Blue Barrel Disposal Co. is the front-runner going into the final round of negotiations to determine the winner of Santa Clarita's lucrative trash franchise agreement, officials said.

However, Blue Barrel, which offered to lower most residents' monthly bills for trash pickup by more than $7, must first convince city officials that the company can meet Santa Clarita's ambitious recycling goals if it is to win the residential and commercial contracts, officials said.

City officials are expected to meet with the three finalists for two hours on Tuesday to work out the remaining issues and finalize a proposed contract from each firm.

Far and away the low bidder, Blue Barrel is almost as well-known for its contributions to local nonprofit groups and sponsorships of charity events as for its blue trash trucks and bins, and the company has the backing of most civic leaders in the Santa Clarita Valley.

That presents a very attractive combination - if the issues Blue Barrel wants to raise during the negotiations can be resolved to the City Council's satisfaction, officials said.

In its proposal for the franchise agreement, Blue Barrel officials called the city's minimum recycling goals - which require the city's hauler to recycle 50 percent of the waste it collects - unworkable and perhaps impossible to meet.

``If businesses and residents are already recycling, then it's pretty much garbage left,'' said Blue Barrel site manager Chris Fall. ``There is only so much you can recycle.''

The requirements are necessary to ensure that the city quickly meets a state law requiring cities to recycle at least 50 percent of their trash and makes progress toward a self-imposed goal of 75 percent, according to city officials.

If the hauler fails to meet those requirements, it would be fined $10,000 every three months, according to a draft of the contract.

Fall said the penalties are not fair because the contract does not give the hauler credit for ongoing recycling and other programs.

Blue Barrel wants city officials to judge whether the hauler has made a good faith effort to get to the 50 percent mark before assessing penalties, but Fall said the company would not insist on changes to the contracts.

``We're not going to let (these issues) cost us the contract and stop us from continuing to serve residents and businesses in Santa Clarita,'' Fall said.

Blue Barrel's concerns about the minimum recycling requirements won't change the residential and commercial rates offered by the company, Fall said.

``The price we offered the city won't change if the city declines to change the penalties associated with the contract's minimum recycling requirements or the indemnification policy,'' Fall said.

However, Blue Barrel's proposed rates would rise if city officials require the company to purchase new trash cans and bins for every home and business, Fall said. The company wants to continue using the bins that are already in service to save residents money, he said.

Santa Clarita has until December 2004 to recycle 50 percent of its trash, or face stiff fines from state officials.

In 2000, the city recycled 42 percent of its waste. Initial data compiled by state officials show Santa Clarita diverted just 39 percent away from landfills in 2001.

Blue Barrel's proposal also asked city officials to first consider the company's good faith effort before forcing the company to pay any fines assessed by state officials if Santa Clarita fails to meet the 50 percent mark in time.

``Bottom line, the city will be indemnified,'' Fall said. ``That's not an issue.''

If it is selected, Blue Barrel would charge Santa Clarita homeowners $14.75 for trash pickup and recycling services. The residential and commercial contracts would be worth about $12.5 million to the company in the first year of the deal.

Heather MacDonald, [phone]

heather.macdonald(at)dailynews.com

TRASH FEES

Highlights of bids from finalists:

Blue Barrel Disposal Co.

Monthly rates

--Single-family home: $14.75

--Apartment: $12.75

--Senior: $11.80

--Diaper recycling charge: 70 cents

--Disposal: Antelope Valley Landfill and Lancaster Landfill and Recycling Center

Burrtec Waste Industries Inc.

Monthly rates

--Single-family home: $16.26

--Apartment: $14.46

--Senior: $13.99

--Diaper recycling charge: 81 cents

--Disposal: Orange County landfills

Consolidated Disposal Service

Monthly rates

--Single-family home: $18.29

--Apartment: $16.29

--Senior: $15.55

--Diaper recycling charge: 66 cents

--Disposal: Chiquita Canyon Landfill in Val Verde

Source: City of Santa Clarita

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TRASH FEES (see text)