Dear Editor:
I serve as the lead government affairs representative in Los Angeles County for CR&R. [Your] article takes provisions of the proposed agreement out of context.
The City has been involved in the process of seeking a new trash hauler for the past 5 years, there was a need to move forward with a quick transition, as the old contract terminates in early November of this year.
CR&R competed in a rigorous process with six other companies. Rather than pay over $100,000 to an outside consultant, the City developed a form of franchise agreement that served as the basic “bidding” specification. Those companies who asked to participate in the process then provided input on their ability to meet such requirements. Once responses were received, other questions were asked of participants, eventually resulting in negotiations of a final contract with the successful company.
Also, the $2M paid to the City is an additional franchise fee that comes at no additional cost to the rate payers. The $2M comes from CR&R’s internal profit margin and is not a charge to the City or its residents. The proposed agreement also contains a provision to reduce fees and can be triggered by the City at any time.
The truth about rate hikes: The speculation that the payment of the advance franchise fees will lead to a rate hike is just that – speculation without merit.
The final contract preserves current residential and commercial trash rates. The speculation that rates will immediately go up in order to fund the financial enhancements offered to the City is unfounded as well, which assertion is either a misreading of the agreement or a complete fabrication intended to stop the award of the franchise to CR&R. In compliance with the City’s stated objective to “maintain the current rate structure for residents and businesses”, CR&R agreed to lock rates at current levels, with the opportunity to petition the City for an increase only once every two years, beginning in 2017, for CPI based rate adjustments that would be capped at an amount not to exceed four percent (4%) per year, or eight percent (8%) biennially. In contrast, the expiring contract has no such rate adjustment cap whatsoever.
Even more preposterous are the allegations that the monies to be paid under the contract to the City are going to the City Manager. Again, the allegations are based upon a lack of knowledge of how such contracts are negotiated. Given the length of the process and the work involved in the 100-page contract (and the number of drafts), not to mention negotiating simultaneously with seven (7) separate companies, City staff and attorney costs for preparation of the franchise document are very substantial and the $350,000 will be used to defray these heavy costs. Any successful company would have been asked to pay such costs. Similarly, a fee for participation is not unusual, meets legal requirements and would have been asked of any successful company.
I hope this information brings clarity and truth to your readers on this very important matter.
If you have questions or comments, please do not hesitate to contact me at [email protected].
John A. Telesio
Government Affairs CR&R Incorporated
Subscribe to get the latest posts sent to your email.
…the bovine feces (aka BS) that you’re spreading
with this rebuttal, or the franchise contract that you
negotiated with our pathetic city council!
Do you really expect anyone, not on our council,
to believe this BF (bovine feces)… I like the part
about the “city staff and attorney costs” of $350K.
Even at hourly rates of $250/hr it would take
1400 billing hours…
John, you’ve obviously been screwing Artesian’s
for quite a long time with your trash rates, but I
don’t think our fine residents will take this BF!
Seagate (Recertified Exos X 28TB Internal Hard Drive HDD - 3.5 in CMR SATA 6Gb/s, 7200 RPM, 512MB Cache, 2.5M MTBF (ST28000NM000C), Renewed
$329.99 (as of June 3, 2025 17:32 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Snack Boxes (7 Pack) Reusable - Stackable Bento Lunch Box Set for Kids and Adults, Sturdy and Easy-to-Clean Meal Prep Containers, Microwave, Freezer, and Dishwasher Safe, BPA-Free (7 COLORS)
$18.99 (as of June 3, 2025 17:32 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
AUVERI Super Bright Solar Lights Outdoor Waterproof 10 Pack, from Dusk to Dawn Up to 12H Light for Outside, Auto On/Off Solar Powered Garden Pathway Lights, Landscape Lighting for Yard
$28.99 (as of June 3, 2025 17:32 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Painted Book Mug Novelty Coffee Mugs for Book Lover Gifts for Women Unique Coffee Mugs 11 Oz Cool Funny Bookish Cute Tumblers Books Worm Readers Writers Librarian Gifts Women
$15.99 (as of June 3, 2025 17:32 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Paint Sprayer 1000W High Power Electric Spray Paint Gun with Adjustable Spray Width Knob,1400ML Container,4 Nozzles & 3 Patterns,Easy to Clean for Furniture Cabinets House Painting Yellow
$35.99 (as of June 3, 2025 17:32 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Dummy Break - VIP
$10.99 (as of June 3, 2025 05:29 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Neutrogena Makeup Remover Wipes, Daily Facial Cleanser Towelettes, Gently Cleanse and Remove Oil & Makeup, Alcohol-Free Makeup Wipes, 2 x 25 ct
$9.97 (as of June 3, 2025 05:29 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Nippies Nipple Covers for Women - Sticky Adhesive Silicone Pasties - Reusable Pasty Nipple Cover with Travel Box
$26.50 (as of June 3, 2025 05:29 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Geometry Dash
$2.99 (as of June 3, 2025 05:29 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Countertop Ice Maker Machine, 8 Ice Cubes in 6 mins, 26lb/Day Ice with 2 Sizes- Portable Mini, Energy Saving & Basket/Scoop for Home/Party/Travel/Camping/Bar,White
$64.99 (as of June 3, 2025 17:32 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)