Assistance in Procurement and Contracting for Lease and Operation of City’s Landfill
(City of Arlington, Texas)

The City of Arlington, TX, recently signed an agreement with Republic Waste Services of Texas, Ltd (Republic) for Republic to lease and operate the City of Arlington Landfill on a long-term basis.

Through this business arrangement, the City will receive up-front payments in excess of $21 million, including over $5.1 million going into a trust fund for closure and post-closure care of the Landfill. Over the term of the Lease, the City will realize substantial revenues and savings, including annual usage fees, (e.g. lease rentals), royalties on out-of-City waste disposed of in the Landfill, reduced disposal fees for City waste, free disposal of City department/agency waste, and certain revenue sharing from Republic’s sale of mulch and compost produced from yard waste processed at the Landfill.

Significant security features are incorporated into the Lease to protect the City. GBB Senior Vice President, Tim Bratton, noted to Arlington Mayor and City Council prior to Council’s vote to accept the Lease, “This is one of the best agreements I’ve seen in terms of the revenues, savings potential and protections it provides the City.”

The GBB Project Team assisted the City in deciding whether to retain ownership and continue operation of the asset as a municipal facility or to sell or lease the Landfill to a qualified private contractor that would operate the Landfill and provide disposal services to the City. GBB’s subcontractor, Pricewaterhouse-Coopers, conducted a valuation of the City’s Landfill to determine its estimated value in the marketplace. Once the City decided to pursue procurement of a contractor to lease the Landfill, GBB assisted in preparing procurement documents and in the evaluation, interview, and negotiation process that led to the agreement with Republic.