Grass Valley forging long-term contract with Waste Management
July 4, 2012
A new agreement with the company collecting Grass Valley’s garbage could mean fresh revenue to the city.
The franchise fee Waste Management of Grass Valley pays to the city is 2 percent, but such contracts recently are commanding fees of 8 percent to 10 percent, City Administrator Dan Holler reported.
After a relationship dating to 1988, the present contract between the two is set to expire in June 2013. City officials are negotiating a new agreement that could include a higher franchise fee in exchange for a longer term.
A term of 15 to 20 years is being considered, although city code allows only a 15-year term. Anything longer would require an amendment to city code, Holler reported.
The agreement will include pickup of garbage, “recyclables, green waste, hazardous waste, debris and other forms of waste materials” from residences and businesses, Holler reported.
City officials will not put the contract out for bids. Nevada County and Nevada City recently approved similar contracts, and “maintaining similar services across neighboring agencies does assist in managing costs,” Holler wrote. It will also save staff time, he added.
A new contract is expected to be brought to a public hearing soon.
Waste Management of Grass Valley is the business name of USA Waste of California Inc.
To contact Senior Staff Writer Trina Kleist, email email@example.com or call (530) 477-4230.
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