Contract Services

City of Mission Viejo

Competitive Procurement (2000)

Project Description

The City maintained separate residential and commercial contracts with different service providers. The City’s diversion rate was 38%, and the City needed to implement new recycling services. The City had service challenges (such as attached housing with individual service needs, but limited storage space for carts; and, shopping centers with limited bin space and collection vehicle access). The City had an unsatisfactory experience during its previous transition from another hauler.

HF&H Solution

HF&H managed the City’s competitive procurement process. We toured the City, discussing service issues with the City and current haulers. We collected and analyzed tonnage and other service data to provide proposers an accurate account service logistics. We drafted a commercial agreement and a residential agreement that included the City’s intent to fully automate residential services and to provide incentives for businesses to recycle. We made arrangements for smaller carts and other special service arrangements for space-constrained customers.

We evaluated the proposals received and assisted the City in negotiating favorable contracts for both residential and commercial services with the current commercial hauler, thereby limiting transition issues, while lowering rates. 

Project Results

As a result of the procurement process, the city: reduced overall rates by 12%, saving the ratepayers $6.4 million over the 8-year term; was reimbursed the costs of the procurement by the selected contractor; implemented an abandoned item collection fee of $65,000 per year; received free commercial and multi-family recycling; procured a smooth transition to automated residential recycling and green waste collection; received free curbside electronic waste collection; received new alternative fuel collection vehicles powered by compressed natural gas and new residential carts; and improved reporting and performance requirements.