DATE: August 23, 2016
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Proposed Assignment of Exclusive Service Area Agreement
RECOMMENDED ACTION(S):
TITLE
Consent to the assignment of Exclusive Service Area Agreement No. 05-411 by Selma Disposal LLC to USA Waste Disposal DBA Waste Management of Fresno.
REPORT
On August 30, 2005, the Board approved and executed agreements with 14 Exclusive Service Area Program (ESAP) haulers. The agreements provide for several types of assignments, including the sale of one hauler's assets to another. On January 28, 2014, Selma Disposal & Recycling sold its assets to Selma Disposal & Recycling, LLC. Now, Selma Disposal & Recycling, LLC (herein after "Assignor"), requests the County's consent to sell its assets to Waste Management, (hereinafter "Assignee"). Department of Public Works and Planning staff has assessed the required information submitted by Assignee and it indicates that this hauler is qualified to provide solid waste handling services in Assignor's exclusive service area.
ALTERNATIVE ACTION(S):
The Board could choose not to approve the recommended assignment. The Assignor has indicated that it intends to cease all hauling and collection services in the Central Valley by August 31, 2016 which would mean that the provision of ESAP services in this Assignor's area could be adversely affected.
FISCAL IMPACT:
There are no Net County Costs associated with the recommended action. ESAP service rates would not increase as a result of the County's consent since Assignee would be required to charge no more than the current Board-approved maximum service rates. Assignee has provided a $6,000 deposit to cover costs incurred by the County as a result of the proposed assignment.
DISCUSSION:
Assignor has been providing solid waste collection services throughout the southern area of the County, as depicted in the attached map identified as Exhibit "A",...
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