211224 1820 RE_ Los Alamitos Integrated Waste Management Services Franchise AgreementFrom:Peter Grant
To:George Pardon
Subject:RE: Los Alamitos Integrated Waste Management Services Franchise Agreement
Date:Friday, December 24, 2021 6:20:13 PM
Mr. Pardon,
The city is providing this response out of concern that your assessment of the Cypress and Los
Alamitos refuse franchises is so careless that it detracts from public discourse.
This concern is most easily illustrated by the suggestion that the city demand VVS match Los
Alamitos' residential refuse rate or be replaced. Even a brief examination of the refuse franchise
reveals that while the city can find VVS in default for non-performance, it does not have the ability to
unilaterally terminate the agreement. There is good reason for this - waste haulers invest millions of
dollars to serve a city in exchange for stable a business environment.
The nature of the differences in the franchises is rather straightforward:
It is typically less expensive to collect less refuse in a small city than more refuse in a larger
city
The franchises were bid seven years apart
Elected representatives make different choices when negotiating franchises. Price and term
are never the only considerations (ask a resident of Garden Grove, Yorba Linda, Brea, Chino
Hills, Fullerton, Villa Park, La Habra Heights, Placentia, Anaheim, and Huntington Beach what
they would trade for more reliable service). The type and level of negotiated services,
payments, and rates naturally differ between different cities
Peter Grant
City Manager
City of Cypress
Office 714-229-6680
Cellular 714-335-1685
pgrant@cypressca.org
-----Original Message-----
From: George Pardon <georgepardon@gmail.com>
Sent: December 16, 2021 20:07
To: Paulo Morales <pmorales@cypressca.org>; Anne Hertz <ahertz@cypressca.org>; Frances
Marquez <fmarquez@cypressca.org>; Scott Minikus <SMinikus@cypressca.org>; Jon Peat
<jpeat@cypressca.org>
Cc: Peter Grant <pgrant@cypressca.org>
Subject: Los Alamitos Integrated Waste Management Services Franchise Agreement
Dear City Council
Enclosed is the Los Alamitos Integrated Waste Management Services Franchise Agreement recently
approved by the Los Alamitos City Council.
With their new contract, Los Alamitos residents will be paying 16% less than Cypress residents are
currently paying and 54% less than the newly proposed rates for Cypress residents. With the new
Los Alamitos deal, residents get 4 bulky item pick-ups a year and they allow 4 items with each pick-
up. Residents also get quarterly Household Hazardous pick up. This contract complies with the
organic waste disposal requirement and is only a 7 year contract. There is a 5% cap on CPI.
Los Alamitos' population is about 25% of Cypress’ population so it doesn’t seem like economies of
scale play into it.
I believe it is a fair question to ask how the new contract terms with Valley Vista will be better for
Cypress residents than the agreement achieved by Los Alamitos. The Los Alamitos agreement would
suggest that Cypress residents shouldn’t be paying any more than currently being charged for
services that should include compliance with the new organic waste disposal requirements. If Valley
Vista rejects this proposal then Cypress should go out to bid for services as soon as possible. Based
on the new Los Alamitos agreement, there doesn’t appear to be any justification to extend the term
of the agreement with Valley Vista.
I really would like to know if I’m missing something in my read of this contract. I don’t want to
spread misinformation. Unless I hear something to the contrary, I will presume my assessment is
correct when I post it on social media.
Thanks,
George Pardon
714-595-0123