Dive Brief:
- The City Council in Reno, NV wants more authority to determine whether Waste Management is living up to the exclusive franchise agreement it was granted in 2012 to collect residential and commercial waste in the city. The authority might be in the form of "surprise inspections" or hiring a third-party monitor. The 2012 agreement has sparked a legal battle between Waste Management and competing recycling companies, including Nevada Recycling and Salvage.
- The biggest issue is whether Waste Management has fulfilled the requirement to build an Eco-Center to sort single-stream recycling and provide other services. Waste Management was required to "commence and diligently prosecute construction" of the Eco-Center by March 7. Waste Management lawyer Gary Duhon said the company is on track to complete construction by the end of next year.
- At a public meeting last week, deputy city attorney Jonathan Shipman declined to say whether he believes the trash company is meeting its obligations. He was concerned the issue may become the subject of a lawsuit involving the city and said he could brief the council in a confidential attorney-client meeting.
Dive Insight:
This is not the first time that Waste Management is under fire for not reaching expectations set by a city.
Waste Management increased trash collection rates to customers by $2 a month to accommodate construction of the Eco-Center. Councilwoman Jenny Brekhus said the language in the franchise agreement is "loosey-goosey" enough to allow Waste Management more time to complete construction. And Duhon noted the construction had to begin, not end, by March 7.
Councilwoman Naomi Duerr said she wanted to assure her constituents that Waste Management is indeed recycling the material it is says it is.
Duhon said he would work with the city to come up with a system, the Gazette-Journal reported.
A contract is a contract, and the city is entitled to pursue assurances that Waste Management is providing service according to the contract.