Council to Consider Outsourcing Trash Collection

In a move that could potentially save Newport Beach more than $17 million dollars, the City Council on Tuesday will consider outsourcing its trash collection.


As it stands Newport Beach's trash collection is done by city employees, but officials said staff has been exploring whether contracting trash collection would save the city money for a few years. The city received seven proposals and hired a consultant to review each one.

“We’ve looked at this for a protracted period because refuse collection is an area where we provide excellent service and our residents appreciate it,” City Manager Dave Kiff said. “However, when you become one of the few agencies left in the country that handles a service in-house, and it’s clear that the private sector can match or exceed the level of service provided, it makes good business sense to gather proposals and consider contracting out.”

According to city officials, the lowest bids would result in a savings of about $17 million over seven-years. Under the lowest bid, residents would be able to receive and use as many free cans as they want or need, and would be able to choose the size of can they want to use, officials said.

At its September 10 meeting, staff will recommend the City Council start negotiations with up to two service providers with staff returning at a later meeting with the winning bid.

“A cost savings of $17 million over seven years, while providing the same or enhanced level of service, is a compelling reason to give this serious consideration,” Mayor Keith Curry said.

With the potential savings from outsourcing trash collection, Kiff said the city could use the money on other things including beautification projects and infrastructure improvements.

The city’s municipal code states residents can't be charged for trash collection, expect for a couple of newly annexed areas including Santa Ana Heights, and that would remain the same if outsourcing is approved.

“If we move forward with the negotiations, our goal will be to preserve the same high level of service provided today while significantly reducing the city’s operations and maintenance costs,” Kiff added.

The Newport Beach City Council will meet on Tuesday, Sept. 10 at 7 p.m. in the City Council Chambers, 100 Civic Center Dr.

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