HomeMy WebLinkAboutITEM V-DCITY OF * *
UBURN
WASHINGTON
To: Municipal Services Committee
Solid Waste Division
Finance Department
Interoffice Memorandum
From: Joan Clark, Solid Waste & Recycling Coordinator
Via: Shelley Coleman, Finance Director
CC: Pete Lewis, Mayor
Date: February 8, 2010
Re: Solid Waste Collection in the Pierce County Portion of Auburn
This memorandum is to inform Council of the status of solid waste collection in the Pierce County
portion of Auburn.
Background
The City of Auburn has five annexations in its Pierce County portion that occurred between 1998 and
2005. Washington State Law establishes certain requirements for a city to assert control over solid
waste services previously provided through the State's certificated system. RCW 35A.14.900
requires the annexing city to grant a minimum of a seven year franchise to a business whose
franchise was cancelled by annexation. In addition, the certificated hauler may sue for measurable
damages after the seven year period.
Court cases that resulted from jurisdictions taking over franchise areas after seven years include:
• Allied Waste Industries v. City of Shoreline: December 22, 2000 - City of Shoreline settled
for $115,000.
• Dahl-Smyth, Inc. v. City of Walla Walla: January 15, 2002 - City of Walla Walla paid
$425,000 for measurable damages.
At the time of each annexation, the City notified the certificated hauler, Waste Connections, and the
Washington Utilities and Transportation Commission that the City would assume the collection and
disposal of solid waste seven years hence.
A franchise agreement diminishes the possibility a hauler will sue for measurable damages after the
seven-year term. For instance, the City of Auburn negotiated a 10-year franchise agreement with
Allied Waste Services for the area annexed by the City in 2008. The franchise agreement gives
Allied Waste Services three additional years to haul in the annexed area and waives their right to sue
for measurable damages. The City attempted to negotiate a similar agreement with Waste
Connections, but was unsuccessful.
Page 1 of 2
AUBURN *MORE THAN YOU IMAGINED
Waste Connections continues to provide solid waste services to residents and businesses in the
Pierce County portion of Auburn without a franchise agreement. Waste Connections is regulated by
the Washington Utilities and Transportation Commission, but Auburn has no control over the solid
waste services provided to residents. Residents in the Pierce County portion are not able to
participate in solid waste programs such as Spring Cleanup and Christmas Tree Recycling.
However, the residents do benefit from litter cleanup and street sweeping that they don't pay for.
Options
Option A - No Action - Waste Connections continues to provide solid waste collection to the
Pierce County portion of Auburn under the WUTC certificate.
• Option B- Notify Waste Connections that the City will assume the collection and disposal of solid
waste in the annexation areas that have passed the seven year mark and negotiate for lowest
measurable damages. If ineffective, Waste Connections may sue for measurable damages.
• Option C - Revisit Waste Connections' proposal for a 15-year franchise agreement. Waste
Connections would waive all potential damage claims and turn their Auburn franchise area over to
the City after 15 years.
Discussion
With a goal of providing equitable solid waste services to all Auburn residents, the City needs to
decide whether to bring the eligible annexation areas under its "Master Contract" for solid waste
collection or make another attempt to negotiate with Waste Connections. If the City chooses to
assume solid waste and disposal collection in the annexation areas that are past the seven-year
mark, Waste Connections may sue for measurable damages. If the City chooses to negotiate a
franchise agreement with Waste Connections it would need to be clear that any time over the seven-
year requirement would be in lieu of measurable damages.
Page 2 of 2
AUBURN *MORE THAN YOU IMAGINED
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