Negotiating Franchise Agreements A Case Study December 7, 2017 Plumas County Negotiating Franchise Agreements A Case Study December 7, 2017

Plumas County C A L I F O R N I A C O U N T I E S

Plumas County – Brief History 1985 Feather River Disposal and Intermountain Disposal “evergreen” contracts for solid waste services 1989 California Integrated Waste Management Act (AB 939) 1991-1995 County Integrated Waste Management Plan Source Reduction and Recycling Element Household Hazardous Waste Element Nondisposal Facility Element Siting Element

Plumas County – Brief History 1994-1998 Construction of new transfer stations 2004 Gopher Hill Landfill closed Chester Landfill closed to solid waste, except for Inert materials Green waste Emergency disposal

Plumas County – Brief History 2011 Franchise contract 5-yr “termination” clause invoked by County No termination date in contracts 10% target profit clause Cumbersome fee adjustment process In-house research on newer franchise agreements Adaptable to Plumas County Bay area solid waste authority 2010 agreement used as template 2011 - 2017 Crafting new solid waste agreements Extended agreement negotiations with franchise contractors’ administration and several attorneys (WM and IMD)

Plumas County – Brief History 2011 - 2017 (cont’d) Process requires update of Plumas County Code section dealing with solid waste prior to new franchise agreement execution 2 stop-gap contract extensions during this lengthy agreement and County Code revision process 2017 Plumas County Ordinance 17-1106 approved by the Board of Supervisors January 3, 2017 Final franchise contracts executed March 21, 2017

Solid Waste Facilities Within Plumas County Locations of Solid Waste Facilities Within Plumas County CHESTER GREENVILLE QUINCY GRAEAGLE DELLEKER LAPORTE

Plumas County Demographics People QuickFacts Plumas County California Population estimates, 2016 18,627 39,250,017 Population, percent change, 2010 to 2016 -6.9% +5.4% Persons under 5 years old, percent, 2016 4.2% 6.3% Persons under 18 years old, percent, 2016 17.1% 23.2% Persons 65 years old and over, percent, 2016 26.2% 13.6% Housing units, 2016 15,726 14,060,525 Homeownership rate, 2011-2015 72.3% 54.3% Households, 2011-2015 8,217 12,717,801 Persons per household, 2011-2015 2.26 2.96 High school graduate or higher, percent of persons age 25 years+, 2011-2015 90.5 81.8 Median household income, 2011-2015 $47,333 $61,818 Geography QuickFacts Land area in square miles, 2010 2,554 155,780 Persons per square mile, 2010 7.8 239.1

Crafting Franchise Agreements In-House Challenges for Plumas County Limited In-House Staffing Director of Public Works One part time staff person Limited In-House knowledge of large corporate legal processes Limited participation of County Counsel Solid Waste Consultant (R3 Consultants) Industry standards and language

Franchise Contractors

Transfer Stations / Recycling Centers Chester Transfer Facility and Recycling Center

Transfer Stations / Recycling Centers Greenville Transfer Facility

Transfer Stations / Recycling Centers Greenville Recycling Center

Transfer Stations / Recycling Centers East Quincy Transfer Facility

Transfer Stations / Recycling Centers East Quincy 1-Stop Recycling Center

Transfer Stations / Recycling Centers Graeagle Transfer Facility and Recycling Center

Transfer Stations / Recycling Centers Delleker Transfer Facility

Transfer Stations / Recycling Centers Delleker Recycling Center

Transfer Stations / Recycling Centers LaPorte Transfer Station

Ultimate Disposal of Garbage Lockwood Landfill – east of Reno, Nevada

The Future! Material Recovery Facility (Presently in the planning phase) A Typical MRF Building

The Future! A Typical Scene Inside A MRF

For further information: Contact: Mara Solomon Solid Waste Program Manager Plumas County Department of Public Works 1834 E. Main Street Quincy, CA 95971 Main: (530) 283-6268 Desk: (530 283-6032 Fax: (530) 283-6323 marasolomon@countyofplumas.com Robert A. Perreault, Jr., P. E. Director of Public Works bobperreault@countyofplumas.com