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Council OKs transfer of Carson—solid-waste franchise to USA Waste with $12.5M payment, $6M in upgrades
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Summary
The City Council voted unanimously to consent to the assignment of Waste Resources Technologies—(WRT)—franchise interest to USA Waste of California, accepting a one-time $12.5 million transfer payment and safety/staffing upgrades valued at more than $6 million, and directing establishment of a restricted internal service fund for those proceeds.
The Carson City Council on April 21 approved an assignment, assumption and consent agreement allowing Waste Resources Technologies (WRT) to transfer its interest in the city—solid-waste franchise to USA Waste of California.
City Attorney (speaking for staff) said USA Waste "has agreed to con to over $6,000,000 of upgrades and staffing, to service the city at no additional cost to the city of Carson's rate payers," and has offered a one-time transfer payment of $12,500,000. Council members and staff said the city conducted a thorough review of the buyer and inspected the transfer station as part of that review.
Mayor Lula Davis Holmes and several council members thanked staff for negotiating concessions and asked staff how the one-time payment would be managed. Director of Finance Will Jefferson said staff and external auditors would set up a specialized internal service fund to receive the payment and track the one-time revenue in compliance with GAAP. Jefferson said the fund could be used for equipment, services and infrastructure at council discretion.
Council discussed whether to designate the proceeds specifically for infrastructure and maintenance rather than the general fund. Mayor Holmes said she wanted the money "put in a special fund, then not to go in the general fund" and suggested earmarking it for infrastructure such as sidewalks and tree work. Staff recommended creating a specialized internal service account that would allow the council to direct the funds for one-time purchases while preserving budgetary transparency.
Councilmember Jim Dear moved to approve the assignment and direct staff to establish an internal service fund for deposit of the settlement payment and purchases related to citywide departmental non-capitalized activities, with language reflecting the council—subsequent infrastructure preference. The motion, seconded by Councilmember Joanne Hilton, passed unanimously.
The vote authorizes the city manager to finalize the assignment and the internal accounting for the payment; staff will return with final documents for signature and begin the procurement steps required to spend the funds according to council direction.
What happens next: staff will set up the restricted internal service fund and apply its accounting rules; the council retained discretion on the precise expenditure plan and asked staff to identify capital and one-time needs (equipment, vehicles, targeted infrastructure repairs) for future appropriation.
Who said it (selected): City Attorney: "The city conducted a comprehensive review ... USA Waste is qualified"; Mayor Holmes: requested the funds be used for infrastructure rather than general spending; Will Jefferson (Director of Finance): explained the fund design and permissible uses.
Outcome: motion approved (unanimous); council directed staff to establish an internal service fund and proceed with the assignment/assumption and consent agreement.
Vote: Motion carried (unanimous).
