To: Board of Supervisors
From: Solid Waste
Meeting Date: December 19, 2023
|
Department Contact: |
Howard N. Dashiell |
Phone: |
707-463-4363 |
|
Item Type: Consent Agenda |
|
Time Allocated for Item: N/A |
Agenda Title:
title
Adoption of Resolution Approving Department of Transportation Agreement Number 230040, Assignment and Assumption Agreement Among Solid Wastes of Willits, Inc., Redwood Waste Solutions, Inc., and County of Mendocino, Assigning Agreements to Redwood Waste Solutions for Solid Waste Franchise Area Numbers One, Three and Four, and Albion, Boonville, Laytonville, Potter Valley, South Coast, Covelo, and Willits Transfer Stations (Various Areas Countywide)
End
Recommended Action/Motion:
recommendation
Adopt resolution approving Department of Transportation Agreement number 230040, assignment and assumption Agreement among Solid Wastes of Willits, Inc., Redwood Waste Solutions, Inc., and County of Mendocino, assigning agreements to Redwood Waste Solutions for Solid Waste Franchise Area numbers one, three and four, and Albion, Boonville, Laytonville, Potter Valley, South Coast, Covelo, and Willits transfer stations (various areas Countywide); and authorize Chair to sign same.
End
Previous Board/Board Committee Actions:
The Board of Supervisors has previously authorized agreements and subsequent amendments for Solid Waste Franchise Area Numbers One, Three and Four, and Albion, Boonville, Laytonville, Potter Valley, South Coast, Covelo, and Willits Transfer Stations. More detailed summaries of existing agreements are included in the attached Agreement.
Summary of Request:
Currently, agreements exist between Solid Wastes of Willits, Inc. (SWOW), and the County for solid waste collection in Solid Waste Franchise Area Numbers One (North County), Three (Anderson Valley) and Four (South Coast) and operation of Albion, Boonville, Laytonville, Potter Valley, South Coast, Covelo, and Willits Transfer Stations (Agreements). Each of the Agreements allow for assignment to another party upon approval by the Board of Supervisors. On October 5, 2023, Mendocino County Department of Transportation (MCDoT) received a letter from Jerry Ward, owner of SWOW, notifying the County he intends to sell the company to Waste Connections, Inc. (WCI), and requesting the County approve assignment of all SWOW Agreements to WCI. Since then, Redwood Waste Solutions, Inc. (RWS), a subsidiary of WCI, has entered into an Asset Purchase Agreement with SWOW, dated October 23, 2023, of which closing is contingent upon approval of the assignment of the Agreements by the County. RWS and SWOW request the Board of Supervisors approve the assignment of the Agreements for Solid Waste Franchise Area Numbers One, Three and Four, and Albion, Boonville, Laytonville, Potter Valley, South Coast, Covelo, and Willits Transfer Stations.
RWS began solid waste collection in County Solid Waste Franchise Area No. Two (unincorporated areas around Ukiah and Fort Bragg) in July 2022, after being chosen as the most-beneficial service provider through a competitive process. Since that time, RWS has demonstrated they are a professional and capable corporation to provide solid waste collection services in Mendocino County. MCDoT staff has found RWS to be extremely responsive, innovative, solution-driven, and customer service-oriented. Their staff is knowledgeable of solid waste industry practices and works diligently to maintain compliance with contract requirements and solid waste regulations. Additionally, being owned by WCI, the third largest solid waste company in North America, RWS has been able to access equipment and staff from WCI “sister” companies when necessary to meet the needs of Mendocino County. In addition to County Solid Waste Franchise Area No. Two, RWS or other local WCI subsidiaries perform solid waste collection in the City of Ukiah, City of Fort Bragg, Lake County, and City of Clearlake. WCI companies also operate the Ukiah Transfer Station & Recycling Center, Pacific Recycling Solutions, Pacific Organics Solutions, Tri-County Scrap Metals, Clearlake Recycling Center, and Lake County Transfer Station & Recycling Center. As such, they have extensive experience with solid waste collection and operation of solid waste facilities in Northern California. If the Agreements are assigned to RWS, all collection and transfer station operations in Mendocino County will be overseen by Bruce McCracken, the current area manager.
MCDoT has received a transition plan from RWS, included with the Assignment and Assumption Agreement as Exhibit A, that outlines the changes that will take place as a result of the assignment. For customers, the only noticeable change that will occur is a transition in the billing system. Most operations will remain the same including billing rates and service levels, customer carts, materials accepted, pickup days and routes, customer service contact information, and disposal locations. RWS has a plan in place for a multi-step customer outreach campaign through mailers and social media during the transition period. RWS will strive to retain all the qualified existing SWOW staff, and drivers will remain on the same routes to ensure continuity of services. Following the purchase of SWOW assets, RWS will perform a full assessment of all acquired trucks and equipment and replace them as necessary with new or newer, more efficient, and more environmentally-friendly vehicles.
MCDoT staff believes approval of the assignment of the Agreements is in the best interest of the public, as RWS has proven itself to be an exemplary company over the past eighteen months. Based on its experience with RWS thus far and review of documents submitted by RWS as a condition of assignment, MCDoT staff is confident RWS has the financial means, experience, and capabilities to fulfill all the requirements of the Agreements. As part of a large, nationwide company, RWS has the expertise, staff, and resources to respond to the challenges of California’s increasingly complex regulatory environment, which can be difficult for small, locally-owned companies to navigate. Under RWS, MCDoT anticipates customers will see a continuity of existing services at minimum, and likely an improvement of services, and rates will not increase as a result of the assignment.
Although approval of this assignment will leave only one solid waste company handling all collection and disposal in Mendocino County, the franchise areas and transfer station agreements remain separate and could be bid together or separately in the future at the discretion of the County. MCDoT is in support of the assignment and recommends the Board of Supervisors adopt the attached resolution approving Department of Transportation Agreement Number (No.) 230040, Assignment and Assumption Agreement among Solid Wastes of Willits, Inc., Redwood Waste Solutions, Inc., and County of Mendocino, assigning agreements to Redwood Waste Solutions for Solid Waste Franchise Area Numbers One, Three and Four, and Albion, Boonville, Laytonville, Potter Valley, South Coast, Covelo, and Willits Transfer Stations.
Alternative Action/Motion:
Do not authorize the assignment and assumption of agreements for Solid Waste Franchise Area Numbers One, Three and Four, and Albion, Boonville, Laytonville, Potter Valley, South Coast, Covelo, and Willits Transfer Stations.
Does This Item Support the General Plan? Yes
Strategic Plan Priority Designation: A Safe and Healthy County
Supervisorial District: Districts 3, 4 & 5
vote requirement: Majority
Supplemental Information Available Online At: n/a
Fiscal Details:
|
source of funding: N/A |
budgeted in current f/y: N/A |
|
current f/y cost: N/A |
if no, please describe: |
|
annual recurring cost: N/A |
revenue agreement: No |
|
budget clarification: N/A |
Agreement/Resolution/Ordinance Approved by County Counsel: Yes
|
CEO Liaison: Executive Office |
|
|
|
CEO Review: Yes |
|
|
CEO Comments:
FOR COB USE ONLY
|
Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Adopted |
|
Date: December 19, 2023 |
Executed Item Type: Resolution Number: 23-202 Executed Item Type: Agreement Number: 23-214 |
|
|
|
|
|
|