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haulers are owners/operators and don't hire a lot of extra people, so it's really a good deal <br />for them. <br />What can the haulers do at this particular time? First, it is my judgment that they are not <br />a cohesive group. There are 50 of them that are licensed, but there's only a half a dozen <br />or so that seem to get involved. I have knowledge that they called an emergency general <br />meeting last Wednesday night to talk about this matter, but I was told that only three <br />haulers showed up. They have never had their act together in the past and I doubt that it <br />will happen in the near future. When I met with the members of the Executive Board prior <br />to your announcement, and that was Frank Rauschnot, Vice President, George Oxford, <br />Helen Crouse and Mike Heinz, Director, there was no question that they had adequate <br />hauling capacity in the private sector to cover our customers. They also were very <br />emphatic in stating that 90 to 95% of the licensed haulers offered a collection rate of $12 <br />to $15 per quarter for senior citizens which is about the same as what our subsidized <br />existing rate is without an increase. They also were emphatic in saying that the regular <br />rate would range from $18 to $21 per quarter. Approximately one-half or 6-7,000 <br />customers called private haulers and made arrangements for private service after May <br />9th. When the lawsuit was filed and the confusing coverage followed in the papers, <br />think many city customers were beginning to wonder if this actually was going to happen <br />so I think many are waiting for a positive statement. I suppose the private haulers could <br />organize and refuse the city customers. <br />I doubt that will happen because they are not that well organized; I rather think it would be <br />a cutthroat, dog eat dog situation among the private haulers. If they attempted to do <br />something like that, we won't sell the trucks until May 10th and we could hold them over <br />on an emergency basis. <br />I understand that some of the Council members have talked to Frank Rauschnot and <br />some of the private haulers to come into the Committee meeting next Tuesday and make <br />some statements favorable to the city staying in the collection business. I think that's <br />going to happen and I have heard some rumors that the private haulers will have their <br />attorney, Bob Johnson, the former State Representative and candidate for Governor, as <br />their spokesman at the Tuesday meeting. This is only hearsay but I think it's likely that <br />will happen and I think he will be asking for the city to stay in and then some kind of an <br />endorsement of the Showalter plan of a year ago calling for a long-term negotiated <br />contract. As I have said, things have changed in the past year and I no longer favor that <br />approach but to this point I have not stated that formally to any of the private haulers or to <br />any of the Council members. What I hoped would happen in our going out of the <br />business is that the private haulers would organize themselves by planning districts so <br />that perhaps 3 or 4 private haulers would be working each of the planning districts. I had <br />offered to give our engineering and technical services to assist the private haulers in an <br />informal way working with the District Planning Councils to program the collection. It was <br />my intention that we would work with that kind of system for two or three months after <br />May 9th and how well that worked would determine the plan that we would propose by <br />August 1 st for mandatory collection. I thought there was a chance the city could stay put <br />of this from the standpoint of the billing, the disbursal of the funds, etc., and let the private <br />haulers run it on a strictly free enterprise basis. I think it could have gone that way except <br />for what happened with the three Council members and the unions which triggered <br />adverse publicity and adverse motives, etc. which have made the haulers very suspicious <br />and gun shy. At this particular time if I was going to give you a plan to follow, it would be <br />something along this line: require weekly collection from each dwelling unit 1 to 4; <br />unlimited pick up, competitive bids taken in each of the Planning Districts, probably a one- <br />