Council Adopts Mayor’s Proposal To Franchise City’s Commercial Solid Waste Operations
Fresno City Council today approved a proposal by Mayor Ashley Swearengin to franchise its commercial solid waste operations to private companies. Council approved a resolution declaring its intention to award franchises to Allied Waste and Mid Valley Disposal in preparation for holding a public hearing and a final vote to award the franchises on Jan. 6, 2011.
“This is a safe and usual approach for cities to process commercial solid waste,” Mayor Swearengin said.
More than 200 California local agencies franchise commercial solid waste operations. Fresno is the only city of California’s 10 largest cities that does not offer private waste hauling for its commercial clients.
The city expects to receive $2.6 million a year for its general fund by franchising its commercial solid waste operations, which include about 7,900 multi-family, commercial and industrial accounts. Residential solid waste collection to approximately 106,000 customers will not be affected by council’s action.
Under the resolution, contractors will be required to hire as many City commercial solid waste employees as may be needed for six months. There are currently 125 positions in the commercial solid waste division, with 16 of those positions vacant. The contractors are expected to hire 85 employees for their operations, and up to 10 more employees may be moved to vacant positions in the residential solid waste area. As a result, a total of 14 employees are expected to be impacted.
Under the resolution approved by council, the franchise will be for a 10-year term plus two extensions at the City’s sole option, each up to five years, for a total of 20 years. The contractors will be required to purchase the City’s existing trucks and bins.
Council is expected to vote on awarding the franchises at its Jan. 6, 2011 meeting. If the franchises are granted, implementation is expected by April 1, 2011.