CRRA2019

Attorney

Constance Hornig is an attorney of 40-years' experience who works with public entities and NGOs on integrated-solid waste matters, including recyclables-processing contracts whether stand-alone or embedded in a collection franchise.  She represents little McFarland&Wasco in the CaliforniaCentralValley to gigantic LosAngelesCounty. 

She participated in developing SWANA / NW&RA joint advisory on recyclables processing contracts, accessible on their websites. 

In this presentation she focuses on her municipal-finance/recent procurements expierence, 

*developing business-terms,

*drafting contracts&RFPs,

evaluating  proposals,&

*negotiating contracts.

She has worked on behalf of local jurisdictions for their contracts with national (Waste Management,Allied,WasteConnections), regional (Recology,Athens,Burrtec) and many local waste-services-companies.

Read the major waste management companies 10Q’ reports to the SEC and listen to their CEOs quarterly calls to shareholders. Shareholders and the rating agencies’ obsessive concern is the crash of the Chinese recycling markets. Companies’ (understandable) response is to shift recyclables market risk to local governments by incorporating the price floors for MRF operations / recyclables processing services (their costs) into tipping fees (their revenue form customers / local jurisdictions). This is not good or bad, but it should be transparent.
If the public is cushioning the contractors against market downturn, what is the consequence for how recyclables revenues (losses) are shared (or not shared)? Gone are the days of minimum price guaranties. Is a 90% revenue share a good deal for a local government? Is a 90% revenue share net operating expenses still a good deal? Read the fine print. This presentation looks at multiple new ways to allocate and share market risk in recyclables processing contracts (or recyclables processing components embedded in collections contracts.