Title
Request for Approval of Consent to Change of Control and Consent to Assignment of the City's Single Waste Trash Hauler Contract
Body
Whereas, the City of Rochester Hills entered into the original Solid Waste, Yard Waste, and Recycling Collection, Transportation, and Disposal Services Contract on April 18, 2019; and
Whereas, on March 11, 2024, the City and the Contractor executed Contract Amendment #1, extending the term of the agreement for five (5) years through March 31, 2029; and
Whereas, following operational, customer service, and billing transitions, the City issued a formal "Notice to Cure" in August 2024, deferred final consideration of the contract assignment under Paragraph 23, and allowed Priority Waste LLC to operate within the City under a limited authorization framework; and
Whereas, Priority Waste LLC. recently notified the City that global asset manager TPG is acquiring a controlling equity interest in its parent company by infusing $190 million into the company to stabilize operations and provide liquidity; and
Whereas, Paragraph 23 of the City’s Agreement defines an “Assignment” as any transfer of more than 10% of company stock or interest, thereby requiring written consent from the City Council; and
Whereas, TPG's acquisition of a controlling interest satisfies this contractual threshold, bringing the transaction under the City Council's purview for formal consideration; and
Whereas, the City administration has monitored a recent rise in service complaints regarding missed pickups, delayed compost/yard waste collections, and extended timelines for resident cart replacements , and has received commitments from Priority Waste LLC. that the $190 million capital infusion is actively being utilized to modernize their fleet, hire drivers, expand customer service capacity, and improve overall service reliability; and
Whereas, City administration and the City Attorney have reviewed the proposed request and recommend that City Council approve the Consent to Assignment and Change of Control.
Now, Therefore, Be It Resolved, that the City Council of the City of Rochester Hills hereby approves the requested Consent to Change of Control and Consent to Assignment with Priority Waste LLC. and TPG.
Be It Further Resolved, that City administration is directed to continue working with the Priority Waste team to hold them accountable to all current contractual terms, ensuring they fulfill operational performance improvements, including modernized fleet reliability and the prompt resolution of outstanding cart deliveries.