Local municipalities eye exclusive garbage contracts; recycling law prompts Westside cities to study options.

The West Hollywood City Council voted last week to begin negotiations with a single company to pick up all refuse from the city's businesses, now being serviced by 18 waste haulers.

Paul Brotzman, West Hollywood City Manager said the city hopes to sign an agreement with the hauler, City of Industry-based Zakaroff Rubbish, in the next few weeks. "We hope to put it (the exclusive contract) in place in 30 days," he said.

West Hollywood gave notice six years ago to the haulers operating there that it might award an exclusive contract to one hauler, Brotzman said. Under state law, cities must give haulers a five-year notice before awarding an exclusive trash contract, he noted.

The West Hollywood move follows a trend by California cities to award exclusive waste hauling contracts to meet the mandates of the state's recycling law. That law -- Assembly Bill 939 -- requires every city to divert 25 percent of its garbage from landfills by 1995 and 50 percent by 2000.

Awarding exclusive hauler contracts has been opposed across the state by small, independent haulers, who say they are being driven out of business by larger rivals. Exclusive franchises are also generally unpopular with local chambers of commerce and other business group officials, who say the franchises violate the principles of free enterprise.

In addition to last week's vote by the West Hollywood City Council, city officials in Beverly Hills and Santa Monica have moved toward awarding trash franchises.

Santa Monica last month gave notice to the 12 or 13 private haulers which operate in the city that in five years it might award an exclusive contract to one hauler, said Craig Perkins, Santa Monica director of environmental and public works management.

"We are not saying we will give exclusive rights (to one hauler). But we want to have that tool available if we need it," Perkins added.

Joe Delaney, solid waste superintendent for the City of Beverly Hills, said that city is reviewing proposals to award an exclusive franchise to one to three haulers in Beverly Hills. Currently, 14 different waste haulers service 800 business accounts in that city.

The city sent out requests for proposals for a trash contract in April "for several reasons, including the need for better reporting regarding waste and recycling in the city to comply with AB 939."

Delaney said that he does not know when the new contract would go into effect, but public hearings on the matter are to begin next month.

AB 939 places the responsibility of diverting waste on each city, which can be fined up to $10,000 a day if it doesn't comply with the law. Cities also must account and report how much trash is being dumped in landfills and how much is being diverted, under the law.

Beverly Hills has decided to consider contracting with up to three haulers in order to give business owners "the opportunity to select their service providers," Delaney said.

West Hollywood's move to negotiate with one hauler was not popular with the city's business community, said Thomas Crail, executive director of the West Hollywood Chamber of Commerce.

In the past, business owners have been able to negotiate their own deals with trash haulers, but they will have to deal with just one if a single contractor is chosen, Crail said.

"Businesses believe that competition is an essential part of our economic enterprises here," Crail said. "We are not convinced that the city-managed franchise is going to provide the level of service that businesses expect."

Zakaroff was chosen by a city committee which reviewed half a dozen waste company bidders on several criteria, said Brotzman.

He said he is aware a number of business people opposed the exclusive contract. He added that it was "unfortunate" that the city's decision may cause economic hardship for some smaller trash haulers.

But he said the benefits of an exclusive franchise outweigh the negatives. For one thing, "it's easier administratively" for the city to comply with AB 939 if it is dealing with one hauler, Brotzman said.

"The second part of the reason is we have 18 companies picking up garbage in West Hollywood," Brotzman said. "You have the situation where three or four trucks will arrive on the same street on the same day at 7:30 in the morning, 8:30 in the morning. It's very annoying to people."