HomeMy WebLinkAbout09 - Amendments to the Non -Exclusive Franchise Agreement for Commercial Solid Waste Handling Services - CorrespondenceReceived After Agenda Printed
October 22, 2019
Item No. 9
From: O'Neill, William
Sent: Tuesday, October 22, 2019 3:40 PM
To: Brown, Leilani
Subject: FW: Tuesday Oct.22,2019 Agenda item # 9 Non Exclusive Contracts for Solid Waste
Collection
Forwarded message
From: Judith Ware <judith@waredisposal.com>
Date: Mon, Oct 21, 2019 at 11:14 AM
Subject: Tuesday Oct.22,2019 Agenda item # 9 Non Exclusive Contracts for Solid Waste Collection
To: Diane Dixon, Will O'Neill, Kevin Muldoon
Cc: Judith Ware <judith@waredisposal.com>, Jay Ware <iay@wared isposal.com>, JASON RUSH
<iason@waredisposal.com>, Brad Timmons <brad@wared isposal.com>
Hello All, Tuesday we have an item on the agenda about Non Exclusive contracts and many new recycling and
equipment opportunities to further the city agreements with updates to the new mandated laws and
improvements on insurance, etc.
What we were wondering is would there be an opportunity to get an extension at this time to this agreement
which is short and ending is fast approaching and since we discussed this already several years ago since the
agreement was so short and equipment finance is usually 7 to 8 years by lenders and rates are better for the
customers with the longer terms and newer equipment. Banks generally want a 7 to 8 year agreement since
trucks are $280,000 each for CNG and potential is Electric vehicles. This contract is ending in 4 years, the
Mandates require more equipment, more bins and trucking pickups so more labor contract agreements.
With longer term agreements we can offer lower rates to customers since they are going to need more services
and more bin services.New Bins for these services that have quiet lids and are watertight and
under warranty can be ordered from vendors and better finance terms for the Customer rates potential
reductions for their services and from the Banks.
Ware Disposal Inc. will be extending the Greenwaste bins services as we are now and ,the Food Waste bin
services.You can see those bins out now around the City.
We provide C and D service a s well with CNG trucks in Newport now.
The Non Exclusive Agreement was short from the start of them which we discussed over and over a few years
back.When they were approved there was a discussion of Grants and contract costs back then which the City
manager didn't follow up on.
Since we are Non Exclusive which is supported, we wanted the longer term to operate and buy more new
trucks financed with the extended contracts.
The Customers get the rate benefit of the extended terms they want and are able to have and be serviced with
the newest equipment available.
Most cities with these new mandates on the contracts are awarding 10 years which was Historic in Newport
Beach from the start and which has retained small and large business and working with the City in a fair
manner for all and good business climate and was changed for some reason to a short contract with shortens
our ability to amortize expenses.That extension would be to add an additional 6-7 more years to be added
Tuesday night at Council direction.
Cities always reserve their rights to meet and confer with the haulers to add new provisions while the term to
amortize expenses and contract costs can be offered.
The Non Exclusive contracts in Newport Beach have provided the best services overall for all.
Thanks for your consideration.
Judith Ware
Ware Disposal Inc.
Madison Materials
P.O. Box 1318
Santa Ana, Ca. 92702
Judith(d_)waredisposal.com
www.waredisposal.com