HF&H Consultants, LLC

Monterey Regional Waste Management District

Financial Sustainability & Franchising Strategy

2010

Through a competitive bid process, HF&H was retained by the Monterey Regional Waste Management District (MRWMD) to assist in developing a plan for ensuring the District’s continued financial stability in a high diversion reality. The District is also working with HF&H to develop a strategy for potential future regional cooperation that maintains high levels of diversion and provides competitive rates to its communities.

Client Needs

The recent economic downturn has reduced the amount of goods people buy. As a result, residents and businesses dispose of less waste at the District’s landfill, thereby reducing tonnage revenue. This has placed the District in a difficult financial position. Additionally, the District is aware that the landfill’s financial model is inconsistent with their status as a recycling and sustainability leader. Given that both regulatory and social commitments are moving toward greater diversion and less disposal, the District needs a plan for the facility’s short-term financial health and long-term financial sustainability.

The District’s member cities and special districts manage their own solid waste franchises, none of which have been competitively bid in 15 years. The District believes that significant rate reductions and service enhancements may be possible through greater cooperation by local cities. The District is considering facilitating greater regional cooperation in planning for upcoming solid waste collection agreements.

HF&H Solutions

HF&H will work closely with District staff to identify short-term funding and operation measures aimed at improving the District’s financial health. All proposed financial, organizational, and operational scenarios will be modeled by HF&H staff using innovative conceptual frameworks and tools developed to specifically address this type of need.

HF&H is working to educate the District’s staff and Board regarding their options for potential recycling and solid waste programs and contracting scenarios. HF&H will discuss possible levels of cooperation among local cities, the type of programs and services to be provided to the District’s residents and businesses, and specific contracting requirements to insert in future franchises.

More Information

If you would like to learn more about the work that HF&H is doing for the MRWMD, please do not hesitate to give us a call.