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Mr- Don McCormick Pair Political Practices Commission June 30, 1997 Page 2 3. Martinez enlisted the assistance of a national consulting firm, RW Beck, to Perform the cost -benefit analysis for the City to determine whether privatization was in the best interests Of the community. Working with -RW Beck was an attorney, Constance Hornig, whose credentials with regard to waste management interests were impeccable. From about October 1995 through late May of 1996, RW Beck and Hornig monitored what was intended to be a strict competitive bidding process. In the course of that process, RW Beck and Hornig prepared a request for proposal, a draft contract, and various other documents and forms for evaluating the proposals that were ultimately submitted. 4. Although the process appeared to follow the self -prescribed rules, there were criticisms throughout from the public and concern from the consultants as well. These issues are documented in the McDonald report. 5. In addition to the concerns that appear in the McDonald report, there were several unverified rumors that have persisted among knowledgeable individuals, including some members of the City Council, that the process was rigged from the start to result in an award of the franchise to Taormina. Those rumors include the following: a. Councilmember Don Sanders, who had never known anyone at Taormina prior to his election to the Council, became fast friends with Dave Ault, President of Taormina, and Ault attended everything from family gatherings to birthday parties for Sanders, children. Sanders, in return, spent many hours at Taormina in the weeks immediately preceding the vote awarding Taormina the franchise -- frequently being there both before and after his own work -day in Long Beach. b. Mayor Fulp engaged in many social events with principals of Taormina and regularly golfed with their lobbyist, Gil Lara. Gil Lara was in fact disclosed as a lobbyist for Taormina in the bidding process. He was being paid a consulting fee of 56,000 per month which was apparently intended to continue after award of the franchise.