Gardena council approves assignment of city waste franchise to Waste Management unit

Gardena’s City Council on Tuesday approved the assignment of the city’s amended and restated solid-waste franchise from Waste Resources (WRG) to USA Waste of California Inc., a unit of Waste Management, and adopted a first amendment to the franchise agreement intended to protect diversion goals and service continuity.

City staff and municipal consultant HF&H told the council the assignment would be contingent on the seller and buyer finalizing their corporate transaction, and described several contract changes negotiated to reflect the incoming contractor’s operations and to protect the city. HF&H’s presentation said the city would receive a transfer payment estimated at about $1,260,000 based on the remaining term and expected gross revenues, plus roughly $130,000 to cover recent shortfalls in diversion requirements and $60,000 to reimburse the city for review costs.

"It should be seamless for the residents and the business owners," Director Rigg said in closing the discussion, adding that most drivers and customer-service staff are expected to transfer to the new operator and that collection days and rates will remain the same.

HF&H’s consultant explained several technical amendments: additional mixed-waste processing to recover recyclables, a bin-transition plan requiring all containers to carry the new hauler’s information within 12 months, added cyber-liability insurance, clarified rate-adjustment language and a detailed contingency plan aimed at maintaining service during potential labor disruptions.

Council members pressed company and consultant representatives on how the incoming operator would meet state diversion obligations and on the reduction in required public-education workshops from eight to four in the draft amendment. Waste Management representatives offered to keep public-education language consistent with prior practice; the council added an amendment to retain the city’s existing education commitments.

Tom Gendel, chief operating officer of Waste Resources, said the sale was driven by owners’ retirement plans; Waste Management representatives emphasized their larger scale and resources and pledged outreach and education. "I would say 99% the same," Gendel said about what residents should expect from collection service under the new operator. Waste Management noted it is a union employer and both companies said roughly 90% of current drivers had agreed to transfer and join the union.

Mayor Serta and all council members voted to approve the consent to assignment and the first amendment.

What happens next: the assignment is conditioned on WRG and Waste Management finalizing their corporate transaction and on meeting the contract conditions specified in the consent. The city will receive the estimated transfer payment only once the transaction closes and the final date is known.