The Costa Mesa Sanitary District's contract for solid waste and recycling services is acceptable, but there is room for improvement, particularly when it comes to rates, according to an independent audit presented Tuesday to the district's board.
Michael Balliet Consulting's 57-page review specifically addressed the Sanitary District's fiscal year 2011-12 agreement with CR&R Environmental Services, a Stanton-based company that has had a long-standing contract with the district. The document said it was "unclear" whether CR&R, which earned about $4.45 million from ratepayers that fiscal year, was charging a "reasonable" amount compared with other cities' trash-collection rates.
"Such an assessment is highly subjective, as 'reasonable' is a relative term," company owner Michael Balliet wrote. "What CR&R believes is reasonable may be quite different than what the CMSD considers reasonable. An objective criterion is needed, and in the auditor's opinion, no definitive data has ever been submitted to the CMSD (by CR&R) that would allow for an accurate assessment of rate reasonability."