
On Tuesday the Fullerton City Council is going to address the topic of selecting the next solid waste hauler. This is a big deal, with a lot of money involved.
Last time, we saw the can kicked, as usual, when the council decided that six finalists would be permitted to sharpen their proverbial pencils and make final and best offers, en route to a final selection.
And so they did. I won’t bore the Friends with the various details of proposals because in the end each is offering different rates, services, and feel good community involvement, the last item a useless PR gesture that somebody in City Hall thought merited points in their selection calculations.
But two RFP respondents offered something else. Big loans to the City’s General Fund that would be recovered over many years via augmented rates.
EDCO has sweetened the pot by offering a $15,000,000 one time payment to the City to be recovered by a differential in the annual Consumer Price Index that is applied to fees.
Republic, the current hauler, is offering a $10,000,000 one time payment they are charmingly calling a “Community Enhancing Payment” which sounds better than “City of Fullerton Bailout.”
Obviously these two cash offer proposals would present the City Council immediate, if only very temporary, relief from the impending budget reserve liquidation, and will attract attention for that. The other positive political result could be the elimination of a November 2026 ballot tax question – a problem in getting on the ballot, and passage by the voters. However, the underlying structural budget deficit would remain and would need to be addressed, anyway, and immediately.
The formulas increasing the CPI scales would really be amount to a hidden tax on waste producing customers in Fullerton, and the City would be in the effective position of incurring debt leveraged on hauling fee increases. I presume the offerors and the City have investigated the legality of this.
Of the two proposers, EDCO was previously ranked first by a narrow margin, while Republic was in last place. The City’s relationship with Republic really soured during negotiations for SB 1383 when Republic did the old bait-and-switcheroo so there’s that to consider.
Is the upfront payment concept viable? I think so. It would buy some time for the City. But somebody would have to pay the piper, and somebody is still going to have to make the budget cuts required to balance a budget and no one has shown any appetite for this bitter menu. Appointing a useless committee to study things has been a waste of time. Almost.
One of the committee members did suggest the very thing that EDCO and Republic are offering demonstrating that at least somebody was thinking of alternatives.
My guess is that “Dr.” Ahmad Zahra and Shana Charles will not support this big payment option, seeing great liberal virtue in imposing a 13% sales tax increase like the ill-fated measure M of 2020. On the other hand, that passage is a risky business and they need 4 votes to make it even get on the ballot. Nick Dunlap probably would not vote for putting a tax on the ballot, or going with the upfront payment plan. But his vote might not be needed. The waste contract only needs 3 votes. Where are Jung and Valencia? I guess we’ll find out Tuesday.




























