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City of Fresno
Commercial and Multi-Family Solid Waste Procurement (2010)
After having cut more than $80 million and 600 employees from the general fund budget in two years, the City of Fresno was faced with another $12 million gap as it planned the fiscal year 2011 budget. The City Manager’s office, working with the Mayor, identified franchising of the commercial solid waste activities as a potential opportunity to help close the budget gap. In order to help the City determine whether or not a franchised commercial system would best serve the City, HF&H developed a procurement process, which included using real proposal information from haulers to inform the decision of whether or not to move forward with the franchising process. By using this strategy, the City was able to obtain the most accurate market information available, and fully assess the City’s options before selecting a path for the future of the commercial system.
HF&H’s RFP resulted in proposals from five companies. Each proposal expanded the programs and services offered to multi-family and commercial customers. The proposals included the purchase of City equipment ($8 million) and will provide approximately $2.5 million annually in ongoing franchise fee revenue. The top three proposals received also offered 3% - 11% lower rates to customers than the rates charged by the City.