PRIVATE SECTOR QUALIFICATIONS
California Waste SolutionsRecycling Franchise Proposal
NewPoint assisted in developing a proposal for one-half of the City of Oakland’s curbside recycling program. We reviewed cost and rate of return information for this recycling collection/MRF processing company. California Waste Solutions was eventually selected by the City and currently provides its curbside recycling services.
Integrated Collection ServicesRate of Return Negotiations
NewPoint Group personnel assisted an Oregon franchise refuse hauler in its negotiations of a rate of return approach with the City of Astoria, Oregon. We prepared a discussion document that included an overview of rate-of-return objectives, methodologies, and various industry approaches. We provided a detailed discussion of the operating ratio approach to calculating profit. For benchmarking purposes we included survey results of operating ratios for local operating companies, publicly-held companies, and privately-held companies.
Morrison & Foerster LLPLitigation Support
NewPoint Group prepared a first level damage assessment for the Tri-Cities (Fremont, Newark, and Union City) in support of a mediation related to Waste Management of Alameda County v. City of Fremont, et. al. WMAC, the waste hauler and landfill owner/operator for the Tri-Cities, filed a multi-million dollar lawsuit against the Tri-Cities. NewPoint Group assisted Morrison & Foerster by preparing a detailed report that quantified potential damages to the Tri-Cities in the areas of: 1) Fair rate of return, 2) Franchise balancing accounts, 3) Landfill closure and post-closure care obligations, and 4) Disposal agreement put-or-pay requirements. Results of our analysis were prepared under attorney-client privilege and used by Tri-City-appointed counsel to reach a settlement agreement with WMAC prior to a trial.
Norcal Waste Systems, Inc.Proposal Preparation
NewPoint Group prepared a competitive proposal for a Norcal subsidiary, City Garbage Company of Eureka. The proposal was to renew the collection and recycling franchise with the City. City Garbage successfully won the competitive bid against several other hauling companies.
Norcal Waste Systems, Inc.Proposal Preparation
NewPoint Group prepared a competitive proposal for a Norcal Information Technology Services Center, Inc, a subsidiary company. The proposal was to provide the City of San Jose with its refuse collection data and information management system, and to provide the City with refuse collection billing and remittance processing services.
Norcal Waste Systems, Inc.Diversion Incentive Program
NewPoint Group assisted Norcal Waste Systems, Inc. with a major multi-million dollar diversion incentive program proposal to the City and County of San Francisco. Norcal Waste Systems, Inc., a more than $300 million company with 26 operating subsidiaries, provides nearly all of the refuse collection and disposal services to the City and County of San Francisco. The proposal was designed to provide Norcal with incentives to make significant capital investments in major recycling equipment and facilities in a timely manner. Norcal would be allowed incrementally higher profit levels on these major investments corresponding to incremental increases in City and County of San Francisco diversion levels. NewPoint Group has: 1) provided on-going consulting assistance to executive level Norcal personnel over a year, 2) assisted in developing the highly rigorous and complex diversion incentive rate setting methodology and associated model, and 3) participated in numerous presentations and facilitated sessions with Norcal management and City and County staff. For the past six years, Norcal had unsuccessfully attempted to develop such a diversion incentive proposal. Thus far, City and County staff have been receptive to this current proposal.
Norcal Waste Systems, Inc.Landfill and Transfer Station Evaluation
NewPoint Group valued a combined transfer station and landfill in Northern California for potential litigation purposes. NewPoint Group used a discounted cash flow model for a period of 10 years.
Oroville Solid Waste Disposal, Inc.Franchise Assistance
NewPoint Group performed a third-party franchise review for the City of Oroville’s solid waste collection franchiser, Oroville Solid Waste Disposal, Inc. (OSWD), a subsidiary of Norcal Waste Systems. A presentation style report was completed for use in discussions with City staff and rate payers summarizing the current financial and operational condition of OSWD.
Otto-NortechLitigation Support for Failed Bailer
NewPoint Group was retained by the plaintiff’s attorneys to provide expert witness services, and to determine economic damages to Nortech Waste LLC, the operator of Western Placer Waste Management Authority’s 700 ton per day materials recovery facility. The damages were the result of an alleged defective conveyor system and an alleged defective baler sustained by construction of the new facility by Monterey Mechanical. NewPoint Group developed an economic damage theory of the case and helped define the precise period of damages for the conveyor and baler, mapping both the defective baler and conveyor claim to company operating and financial data. NewPoint Group analyzed baler specifications and developed data to calculate defective baler performance in terms of percent of the original baler specifications. We found the extent of damages to include approximately twenty recyclable production items and calculated economic losses for HDPE, PET, and steel recyclables.
Rogue Disposal, Inc.Disposal Alternative Analysis
NewPoint Group personnel conducted: 1) a survey of allowable profit for a collection operation, and 2) a Next Best Disposal Alternative Analysis for a local landfill. The allowable profit survey focused on 15 Oregon jurisdictions that used an operating ratio mechanism. Our disposal alternative analysis compared total costs of alternative transfer, transportation, and disposal scenarios with the current costs of using an in-County landfill.
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