Competitive Procurement and Negotiations of Residential and Commercial Solid Waste Collection Contracts
2002
Client Needs
The City had three residential haulers operating in three exclusive areas. The same three haulers offered commercial services City-wide on a competitive basis under a maximum City-approved rate. Residential and commercial contracts ended years apart. The City wanted to:
Restructure the franchise arrangement
Analyze regional transfer station and MRF options
Analyze variable can rate implementation options
HF&H Solutions
We prepared a RFP and drafted agreement for separate residential and commercial contracts with the same end date. We conducted public outreach meetings, evaluated six proposals, and negotiated contracts with three potential haulers, including an agreement to develop a materials recovery facility in the City.
Results
City will save an estimated $35 million over the terms of the contracts, with a 30% reduction in residential rates and a 13% reduction in commercial rates
Reimbursement of procurement costs by contractors
Recycling Fee of $70,000 per year paid to City
$5.50 per ton of commercial recyclables paid to City
Collection at no additional charge from City facilities and at City-sponsored events
City has the option, at the end of the term, to purchase a MRF built by the commercial hauler below market value
Free commercial and multi-family recycling
Free mixed waste processing of at least half of commercial loads
New residential carts and enhanced recyclables and green waste collection
City of Santa Clarita