Ending negotiations with current residential waste haulers for new contracts (CWA, Garden City, Green Team and GreenWaste)
The City provides residential recycling and garbage services through four contracted service providers: California Waste Solutions (CWS), Garden City Sanitation Inc. (GCS), Green Team of San Jose, and GreenWaste Recovery. Combined, this system is one of the largest privatized solid waste systems in the nation with an annual budget of approximately $115 million.
On March 28, 2017, Council directed staff to initiate negotiations with all existing Recycle Plus residential solid waste contractors to pursue new agreements that would replace the existing agreements, which will expire June 30, 2021, and return to Council with the results.
After attempting to negotiation, staff is recommending not renewing the current contracts for the following reasons:
- Negotiations did not meet Council-directed goals;
- Proposed contractor costs are higher than anticipated and are not definitively lower than a procurement process could achieve;
- The current Recycle Plus system is not flexible enough to address a changing regulatory landscape or uncertain recycling market conditions;
- The major shift in cost distribution amongst hauler districts raises legal concerns about continuing with a citywide Recycle Plus customer rate with different service districts potentially having uneven costs; and
- Service districts that were originally established 25 years ago do not account for changes in the City’s growth and population and result in less efficient service delivery.
Staff recommend
- a) Accept staff’s report discussing the negotiations with the current Recycle Plus haulers and providing information on staff’s evaluation that the negotiations were unsuccessful;
- b) Direct staff to end negotiations with the current Recycle Plus haulers;
- c) Adopt a resolution authorizing the City Manager to waive the contractor disincentives for not meeting the required diversion rates for calendar year 2018, if by December 31, 2018 the City Manager determines that the Recycle Plus haulers are unable to meet their required diversion rates because of China’s “National Sword” policy on the import of recyclable materials;
- d) Direct staff to return with recommendations on future waivers as part of the budget process for 2019-2020 if necessary because of the continuing impacts of China’s “National Sword” policy.
This recommendation would direct staff to stop negotiations with the Recycle Plus residential solid waste haulers for continuing services under similar program framework. Recommendations related to pursing a competitive procurement process are outlined in a separate June 5, 2018 Council memorandum: “Parameters for Request for Proposals for Future Residential Solid Waste Services.”
This recommendation would also authorize the City Manager to waive the contractor disincentives for calendar year 2018, if by December 31, 2018 the Recycle Plus haulers are unable to meet required diversion rates due to China’s “National Sword” policy on the import of recyclable materials.
Memo: http://sanjose.legistar.com/gateway.aspx?M=F&ID=7ce94b22-837c-4936-9521-408999a8b7e9.pdf
Where: San Jose City Council
When: Tuesday, June 5, 1.30pm, City Chamber
Link to item: http://sanjose.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=3458
Link to agenda: https://sanjose.legistar.com/View.ashx?M=A&ID=594715&GUID=46ACBF92-FEE7-4815-8097-DDE74B1F2A03
Initiating procurement process for residential solid waste services
Direct staff to:
- a) Initiate development of a Request for Proposals (RFP) to solicit and award agreements for residential solid waste services that would begin July 1, 2021; services will include collection and processing of solid waste, recyclables, and organic materials for each of the two service districts for single-family residences and a citywide district for multi-family residences, and City Facilities;
- b) Establish term of 15 years for the new agreements;
- c) Include the following in the Request for Proposals: 1) Living wage and employee retention requirements consistent with Council’s Living Wage Policy; 2) Solicit ideas for the new system to be flexible to address evolving recycling markets; while continuing to meet zero waste goals; 3) Solicit ideas for the new system to support Climate Smart San José and reduce greenhouse gas emissions; 4) Include optional services for emergency response support; 5) Solicit ideas for providing larger garbage carts to single-family residents and exploring updated customer rate structures; 6) Performance standards that would address leveraging technology and providing ease of use for enhanced customer service, material recovery and marketing, service delivery, environmental compliance, and vehicle standards;
- d) Complete waste characterization studies to inform the RFP;
- e) Explore using City staff for Junk Pick-Up services and customer outreach; and
- f) Procure residential street sweeping and Public Litter Cans services separately from residential waste services.
This recommendation would direct staff to initiate a procurement process for San Jose residential solid waste services with the parameters included in this memorandum. A procurement process will provide the opportunity to innovate the residential solid waste program in ways that address emerging State and local regulations and priorities, uncertain recycling markets, and obsolete contractual terms and hauler service districts. Proposed timeline would be for RFP released in Sept. 2018 with proposals due in Jan. 2019.
Some key parameters planned for the RFP include:
- Living Wage: Require full San Jose Living Wage in all contracts. Under the current Recycle Plus system, only a Modified Living Wage is practical. An RFP provides the opportunity to require full Living Wage for future contractors.
- Employee Retention: Require the successful proposers to retain employees of the former contractors.
Memo: http://sanjose.legistar.com/gateway.aspx?M=F&ID=0a88e966-2911-4e31-84f3-872f2dfead14.pdf
Where: San Jose City Council
When: Tuesday, June 5, 1.30pm, City Chamber
Link to item: http://sanjose.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=3464
Link to agenda: https://sanjose.legistar.com/View.ashx?M=A&ID=594715&GUID=46ACBF92-FEE7-4815-8097-DDE74B1F2A03
Approving “Modified Living Wage” for current solid waste contractors
Staff recommends:
- a) Accept the staff report on:
1) The proposed methodology to implement a Modified Living Wage for Recycle Plus Customer Service Representatives, Mechanics, and Materials Recovery Facility workers (“Facility Workers”); and
2) Updated labor peace plans from the Recycle Plus contractors.
b) Adopt a resolution authorizing the City Manager to negotiate and execute contract amendments with GreenTeam of San Jose and GreenWaste Recovery Inc. to implement a Modified Living Wage Requirement for Recycle Plus Facility Workers effective September 1, 2018.
c) Direct staff to include a Living Wage requirement for the Recycle Plus program in future residential garbage and recycling agreements.
Approval of the recommendation will accept staffs proposal for a Modified Living Wage (MLW) requirement, specific only to Recycle Plus residential garbage and recycling agreements, so as to implement the City’s Living Wage Policy (Council Policy 3-3) in San Jose facilities that process waste collected both within and outside of San Jose, and will also accept new labor peace plans from all residential solid waste contractors.
Approval of this recommendation will also authorize the City Manager’s Office to negotiate and execute contract amendments with GreenTeam of San Jose (GreenTeam) and GreenWaste Recovery Inc. (GreenWaste) to incorporate a MLW requirement effective September 1, 2018. In FY 2018-2019, the approximate $2.4 million in costs associated with MLW will be offset by the Rate Stabilization Reserve in the Integrated Waste Management Fund (Fund 423). The ongoing costs for implementation ofMLW are approximately $3 million annually.
Finally, approval of this recommendation will direct staff to include a full living wage requirement across all future Recycle Plus agreements.
Where: San Jose City Council
When: Tuesday, June 5, 1.30pm, City Chamber
Link to item: http://sanjose.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=3463
Link to agenda: https://sanjose.legistar.com/View.ashx?M=A&ID=594715&GUID=46ACBF92-FEE7-4815-8097-DDE74B1F2A03
Public hearing over $4.4m development subsidy for 199 Bassett Street/Aviato project by KT Urban
Conduct a Public Hearing regarding an economic development subsidy given in connection with a reduction in construction and conveyance taxes and park impact in-lieu fees for a Downtown residential high-rise at 199 Bassett Street in the amount of $4,391,240, pursuant to California Government Code Section 53083 and Open Government Resolution Section 2.3.2.6 C.
Approval of an economic development subsidy in the amount of $4,391,240 in conjunction with the Downtown High-Rise Residential Incentive Program, approved by City Council in December 2016, for the project at 199 Bassett Street in Downtown San Jose
Memo: http://sanjose.legistar.com/gateway.aspx?M=F&ID=dc7c4355-23f4-490b-bb93-4b491e458bdb.pdf
Where: San Jose City Council
When: Tuesday, June 5, 1.30pm, City Chamber
Link to item: http://sanjose.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=3444
Link to agenda: https://sanjose.legistar.com/View.ashx?M=A&ID=594715&GUID=46ACBF92-FEE7-4815-8097-DDE74B1F2A03
City of Santa Clara City
Direction on potential Nov. 2018 tax measure
This serves as the master report for revenue opportunities for the City Council Study Session that can be considered for the 2018 November Ballot.
Staff’s purpose for this presentation on revenue options is to keep the City Council focused on the fact that the number one priority must be to stabilize our fiscal outlook to preserve service and staffing levels, generate more revenue to meet expenditure growth demands, and develop strategies for unfunded needs/projects. Combined, both revenue and expenditure strategies are needed to balance future deficits.
The City’s 10 Year Fiscal Outlook forecasts structural deficits over the next ten years. Additionally, the City has a number of unfunded capital infrastructure needs.
Over the course of the last few months, staff has worked on revenue options for Council consideration. This report serves as the transmittal memo for the following revenue opportunities:
- Increase in the Transient Occupancy Tax (TOT) rate,
- Increase in the Documentary Transfer Tax,
- Establishment of a Utility User Tax (UUT),
- Establishment of a Cannabis Tax, and/or
- Establishment of an Infrastructure Parcel Tax.
At the end of staff’s presentations on all three reports, the Council is asked to provide input regarding all five revenue opportunities and determining which two measures should move forward for further analysis and research for the November 2018 General Election.
Recommended actions:
- Review and Provide direction on the Potential General Fund Revenue Opportunities.
- Authorize the City Manager to enter into contracts to conduct the required community research and outreach.
- Approve the appropriation of $250,000 from the General Fund Budget Stabilization Reserve to the City’s Clerk’s operating budget.
Where: Santa Clara City Council
When: May 29, 2018, 6 pm
Link to agenda: https://santaclara.legistar.com/View.ashx?M=A&ID=605865&GUID=041134F9-21F3-4177-82C5-1616B915616A
Accepting applications for vacant City Council seat
The City of Santa Clara is seeking candidates for a vacant City Council position.
All applications must be received by the City Clerk’s Office no later than 5 p.m. on June 5, 2018.
Interviews will be held during the Council meeting on June 12, 2018 at 7:00 p.m., in the Council Chambers located at 1500 Warburton Avenue, Santa Clara 95050.
Completed applications will be accepted via email, mail or in-person but must be received (not post marked) in the Clerk’s Office by the June 5 deadline at the following:
City Clerk’s Office
Attn: Council Seat No. 5 Vacancy
1500 Warburton Avenue
Santa Clara, CA, 95050
OR submit completed application via email to clerk@santaclaraca.gov.
Any interested applicant must meet the eligibility requirements, as set forth in the City Charter, Section 600, which states that they are a resident and a qualified registered elector of the City of Santa Clara.
For more information, please email clerk@santaclaraca.gov, or call (408) 615-2220.
Where: Santa Clara City Council
When: n/a
Link to application: http://santaclaraca.gov/government/council/councilmembers
Direction on project list for a potential Nov. 2018 bond/parcel tax measure
Staff recommends conducting additional community opinion research to determine the viability of a November 2018 capital projects revenue measure when tested against other revenue generating opportunities that stabilize the City’s fiscal outlook. Staff memo states that the Council will need to weigh heavily the viability of staff’s ability to implement a significant capital program of this magnitude while concurrently reducing expenditures, and staffing, to balance the budget. Meaning that, the voters may approve a Property Tax for investment in projects important to the City; however, given the 10 Year Fiscal Outlook, the ability to deliver in the context of reduced staffing throughout the City will impact the ability to successfully deliver the projects.
Staff has developed two project options for consideration based on existing needs and priorities. The project lists are based on $200 million of available funding, given the previously presented financing capacity, and on existing 2018 engineering and construction costs with no escalation.
The intent of the project list is not to finalize the projects and funding levels, but to provide perspective on what type and number of projects could be included as part of a Measure and inform the community opinion research process.
Recommended actions:
- Select a conceptual project option (Option 1, Option 2, or a different Council option) and continue the process of developing a November 2018 Ballot Measure.
- Approve the appropriation of $300,000 in the Budget Amendment to the International Swim Center, CRC, ISHOF (CIP 3172), and authorize the City Manager to execute Amendment No. 1 in substantially the same form with PFAL in the amount of up to $300,000.
Where: Santa Clara City Council
When: May 29, 2018, 6 pm
Link to agenda: https://santaclara.legistar.com/View.ashx?M=A&ID=605865&GUID=041134F9-21F3-4177-82C5-1616B915616A
Awarding janitorial contract to SWA for up to $4.8M
The Public Works Department oversees the maintenance and repairs for approximately 800,000 square feet of buildings throughout the City. The City’s current janitorial service contract is nearing its expiration; therefore, the city posted a Request for Proposals (RFP) for Janitorial Services. The RFP also included services such as night cleaning, day porter services, and special event cleaning.
Four companies submitted proposals; however, one proposal was rejected as being nonresponsive due to the proposer not being registered with the Department of Industrial Relations at the time of the proposal submittal as required in the RFP.
It was determined that SWA Services Group, Inc. (SWA) submitted the most advantageous proposal. SWA submitted the second lowest cost proposal; however, based on their experience, the quality of their submittal and expertise, they were ranked number one at the end of the RFP process. SWA demonstrated a strong training program and personnel time management system.
The proposal includes costs to provide three years of service under this agreement and SWA also submitted proposals to cover two optional one year extensions. The amount to be paid to SWA over the proposed three year term covering this agreement from July 1, 2018 through June 30, 2021 shall not exceed $2,720,480 which includes a 10% contingency, subject to future budget appropriations. The proposal also includes a price for two optional one year extensions for a total not to exceed amount of $4,804,747.
Where: Santa Clara City Council
When: May 29, 2018, 6 pm
Link to agenda: https://santaclara.legistar.com/View.ashx?M=A&ID=605865&GUID=041134F9-21F3-4177-82C5-1616B915616A
City of Palo Alto
Deciding on potential 2018 ballot measure to address infrastructure funding gap
Council will review the results of a public opinion survey regarding a potential 2018 ballot measure to address the funding gap for the 2014 Infrastructure Plan and unplanned potential community assets projects, and provide potential direction to Staff for a 2018 Ballot Measure. The Staff report will be produced on Thursday, May 31, 2018.
Where: Palo Alto City Council
When: Mon. June 4, 2018, 5:00pm
Link to item: https://www.cityofpaloalto.org/civicax/filebank/documents/65200
Link to agenda: https://www.cityofpaloalto.org/civicax/filebank/documents/65183
Creating a new “workforce housing” zoning district for multi-family housing at 120-150% AMI
Staff recommends that Council adopt an ordinance to create a new Workforce Housing Combining District. The ordinance defines workforce housing as “multi-family rental housing project in which at least 20 percent of the units, excluding any required below-market-rate units, are affordable to households earning more than 120 percent of area median income (AMI) up to and including 150 percent of AMI.” The ordinance also includes preferential rental to those living or working within the city or within 0.5 miles of fixed rail transit platforms outside of the city.
In addition, staff recommend that Council adopt an ordinance to apply the combining district to a property at 2755 El Camino Real and approve the site for a proposed project of a four-story multi-family residential building with 57 dwelling units, including 40 studio units and 17 one bedroom units. The subject property is currently a vacant parking lot located at the northeastern corner of El Camino Real and Page Mill Road where there are extensive employment opportunities
Following Council’s decision, if approved, a second reading of the Zoning Code Text Amendment Ordinance is tentatively scheduled for June 18, 2018.
Where: Palo Alto City Council
When: Mon. June 4, 2018, 5:00pm
Link to item: https://www.cityofpaloalto.org/civicax/filebank/documents/65204
Link to agenda: https://www.cityofpaloalto.org/civicax/filebank/documents/65183
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