COMPETITORS HOPE TO CASH IN ON TRASH.

Byline: Heather MacDonald Staff Writer

SANTA CLARITA - With two weeks left before the deadline for companies to submit proposals for Santa Clarita's trash contracts, seven firms have indicated interest in the lucrative franchise.

A mix of large trash conglomerates and small independent firms are expected to bid on the contracts, which represent millions of dollars in profits annually and a decade of financial security for the winning hauler or haulers.

``The process has been very positive, and it is moving along nicely,'' Councilwoman Laurene Weste said.

The city's current haulers, Santa Clarita/Blue Barrel Disposal Co. and Atlas/Consolidated Disposal Service, are both expected to vie for the residential and commercial contracts to expand their businesses in the booming Santa Clarita Valley.

The three largest trash firms in the nation own Atlas, Blue Barrel and challenger Browning Ferris Industries, which owns Sunshine Canyon Landfill in Granada Hills.

All three firms belong to conglomerates, which allow companies to reduce costs because they might own everything from the plants that process recycled goods to the landfills where waste is ultimately buried, according to trash experts.

For example, Atlas' parent company, Republic Services, owns the only dump in the Santa Clarita Valley, the Chiquita Canyon Landfill in Val Verde. Most landfills charge affiliated companies discounted rates to dump trash, which could allow Atlas to charge residents less than other companies. Atlas would also save on transportation costs because of the dump's proximity to Santa Clarita.

``Every proposal will get a fair shot,'' said Mayor Cameron Smyth.

Crown Disposal Co., which owns a materials recovery facility in Sun Valley and serves the city of San Fernando, intends to bid for the contracts despite its small size, said Sales Manager Tom Ybarra.

``We're constantly experimenting and trying new things to stay ahead of the curve and the big guys,'' Ybarra said.

Three other small companies are expected to bid for the contracts, including E.J. Harrison and Son, which serves most of Ventura County and parts of Santa Barbara.

Fontana-based Burrtec Waste Industries serves a number of cities in the San Gabriel Valley and unincorporated areas in Los Angeles County, according to Vice President Michael Arreguin.

``We share Santa Clarita's commitment to innovative recycling,'' Arreguin said.

Riverside-based National Environmental Waste Corp. is considering bidding on the contracts, although it does not currently serve any cities in Southern California.

``We're a mom-and-pop company,'' said General Manager Kevin Boling. ``But we're confident that Santa Clarita will be a good fit for us.''

The City Council is expected to award a seven-year deal for residential service, to begin in 2006, and a nine-year deal for commercial service, to begin next year, in order to have both end at the same time. Each year of the contracts could be worth as much as $13.5 million, officials said.

The council subcommittee on solid waste, made up of Councilwomen Weste and Marsha McLean along with city staff and consultants, is expected to make a recommendation in August to the full City Council.

The new plan also expands the City Council's power to audit Santa Clarita's haulers, while requiring them to pay thousands of dollars in fees to encourage recycling, especially in the commercial sector.

The City Council will select the best combination of price and service in an effort to increase the amount of waste recycled and reduce the $22.13 monthly rate residents pay for trash pickup, which is among the highest in Los Angeles County, Smyth said.

The contracts call for a flat rate for residential trash pickup and recycling services, with a $10 charge for each extra refuse bin. If the same company is awarded both the commercial and residential contracts, an across-the-board rate discount would be implemented.

In addition, the contracts set tough penalties for haulers if Santa Clarita's recycling rates do not quickly reach the 50 percent level mandated by state law and make progress toward the city's self-imposed goal of 75 percent. In 2000, Santa Clarita recycled just 42 percent of its waste.