TO: Napa-Vallejo Waste Management Board of Directors
FROM: Chris Celsi, Executive Director
REPORT BY: Chris Celsi, Executive Director
SUBJECT: Northern Recycling Operations & Waste Services, LLC Extension
RECOMMENDATION
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Approval and authorization for the Chair to sign the Second Amended and Restated Agreement No. 07-03 with Northern Recycling Operations & Waste Services, LLC (NROWS) for Municipal Solid Waste Diversion, Transfer, and Transport Services at the Devlin Road Recycling & Transfer Facility (DRRTF). This Agreement will govern operations from January 1, 2026, to December 31, 2040, with the option for the Authority to extend the Agreement for 5 more years.
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EXECUTIVE SUMMARY
On April 19, 2007, the Authority entered into Agreement No. 07-03 with NROWS, LLC effective July 1, 2007 for municipal solid waste diversion, transfer and transport services at the Authority's DRRTF. The base term expired on December 31, 2022, with 4 one-year options to renew of which the Authority has exercised three. The current agreement will expire on December 31, 2025. The Authority and NROWS have negotiated a long-term extension to the agreement which will cover operation of the DRRTF for at least the next 15 years. The long-term extension is necessary for NROWS to invest in new equipment to improve recycling at the facility. Staff utilized the services of R3 Consulting Services to review and analyze the existing agreement with NROWS and provide negotiation support and recommendations related to extending the agreement.
Over the past year, the Authority and NROWS worked very closely to arrive at a fair and equitable extension of the agreement to continue operating the DRTS. This Second Amended and Restated Agreement is substantially similar to the existing agreement, with the following changes related to compensation:
Service Fee (Section 8.02(a)):
1). Base Component (up to Base Tonnage of 290,000 tons):
Year 1 (2026) $605,432 per month
Year 2 (2027) $711,2...
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