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Rochester Hills City Council Resolution of Concern Regarding GFL Contract and Performance
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Whereas, on April 18, 2019, the City of Rochester Hills (“City”) entered a contract with GFL Environmental USA Inc. (“GFL”) for solid waste, yard waste and recycling collection, transportation and disposal services (“Contract”); and
Whereas, on or about March 11, 2024, the above-referenced parties agreed to a Contract amendment #1 which provided that the initial Contract term would be extended from April 1, 2024 to March 30, 2029 and that except as expressly provided in the Amendment #1 all terms and provisions of the Contract will remain in full force and effect; and
Whereas, on or about June 4, 2024, the City received a letter from GFL that GFL had agreed to sell its assets used in connection with the performance of the Contract with the City to Priority Waste LLC (“Priority”) with the closing to occur on June 30, 2024; and
Whereas, the Contract provides, in Paragraph 23, the contract shall not be assigned, delegated or subcontracted by the Contractor without the prior written consent of the City, which consent shall not be unreasonably withheld. The City shall be provided ninety (90) days' written notice prior to expected date of assignment; and
Whereas, GFL did not provide the required notice under the Contract to the City, and City, without waiving its right to study and evaluate whether to agree to any assignment, has given limited approval to Priority to provide the services under the Contract upon the same terms and conditions, while it conducts its due diligence regarding the assignment request.
Whereas, complaints have been received regarding the performance of solid waste, yard waste and recycling collection, transportation and disposal services under the Contract.
Now, Therefore, Be It Resolved, that the City Council of the City of Rochester Hills directs the Mayor to investigate and ensure that all terms and conditions imposed in favor of the City or its inhabitants in any public utility franchise or in any contract are faithfully kept and performed.
Be It Further Resolved, that the City Council of the City of Rochester Hills authorizes the Mayor, to take such action as the Mayor determines necessary regarding the Contract’s performance which may include, but is not limited to, seeking the recovery of liquidate damages along with such other remedies to which the Mayor determines the City may be entitled.