Report to Mayor and City Council
Tuesday, September 17, 2019
Consent
SUBJECT:
Title
SETTLEMENT AGREEMENT BETWEEN USA WASTE OF CALIFORNIA, INC. ("USA WASTE"), THE CITY OF CARSON AND WASTE RESOURCES TECHNOLOGIES, INC./WASTE RESOURCES, INC. ("WRT"). AMENDMENT TO WRT FRANCHISE AGREEMENT TO ACCOMMODATE TERMS OF SETTLEMENT (CITY COUNCIL)
Body
I. SUMMARY
Since March 2018, the City has been party to several litigation pieces relating to its award of an exclusive solid waste hauling franchise to WRT. The City's former franchised hauler, USA Waste, has challenged the City's award of franchise to WRT and the transition of certain solid waste accounts to WRT. The City and USA Waste have also had other longstanding disputes with respect to USA Waste's operation of a solid waste "transfer station" in the City.
All parties to the litigation have worked diligently for several months towards a global settlement of all disputes. To that end, the parties have reached the global settlement package at Exhibit "A". The terms of this settlement were approved by the Council in closed session on September 3, 2019. The settlement provides several benefits to the City, including:
* Dismissal and release from all pending, litigation;
* A onetime payment of $1.2 Million to the City;
* A proposal to negotiate and effect at least $5 Million Dollars in improvements to USA Waste's transfer station, including enclosing same, landscaping and development of a state of the art ventilation system;
* An option for the Carson Reclamation Authority ("CRA") to purchase certain parcels on Main Street for redevelopment purposes; and
* New, increased "host fees" payable to the City from USA Waste- estimated to generate approximately an additional $500,000 in revenues to the City, annually;
As an integral component of the settlement, it is also recommended that the Council approve that "First Amendment to Exclusive Franchise Agreement for Integrated Solid Waste Management Services" (Exhibit...
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