City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: October 2, 2023
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2023-64
RECOMMENDATION
It is recommended the City Council consider approval of Resolution No. 2023-64, A Resolution of the City Council of the City of Gonzales Rejecting All Proposals Received by the Cities of Gonzales, Soledad, Greenfield, and King (Cities) to Select a Qualified Contractor to Collect Solid Waste, Recyclables, and Organic Waste within the Boundaries of Each City as a Single Franchise Collection Zone; and direct staff to enter into discussions with the South Monterey County incumbent waste haulers, Tri-Cities Disposal & Recycling and Waste Management, for an extension of their current franchise agreements.
BACKGROUND
The Cities of Gonzales, Soledad, and Greenfield, have a joint Revised and Restated Franchise Agreement (Agreement) with Tri-Cities Disposal and Recycling, Inc., (TCD) for the subject services that is due to expire on June 30, 2025. The City of King has a franchise agreement with Waste Management for the same services that is also due to expire on the same date. This contract term alignment allowed all South Monterey County Cities to jointly solicit competitive bids and evaluate service proposals and select the proposal that best serves the Cities’ needs. The proposals were received and reviewed by the evaluation committee made up of the South Monterey County city managers and their designated staff, coordinated by the Cities’ franchise administrator Salinas Valley Solid Watse Authority (SVSWA).
The joint RFP was designed to attract competitive bids and rates due to the increased economies of scale.
The RFP intended to select a contractor to provide uniform collection services for all four cities with some customizable options for each of the cities, such as waste transfer options, billing structure, and other additional services, including providing increased commercial bin recycling capacity equivalent to each customer’s weekly garbage capacity.
AGENDA
ITEM
11 REVIEW AND ANALYSIS
On June 30, 2023, SVSWA received proposals from three companies. SVSWA compiled the proposals’ data for analysis by the RFP evaluation team. The proposals’ rates were compared to the equivalent services at the current contract rates and the results were not favorable resulting in significantly higher costs. In brief, the proposal rates ranged from an average of 33% to 55% increase in certain customer service rates, with some services reaching almost 100% increase.
After review and analysis of the proposals, the evaluation team unanimously reached consensus to reject all proposals based on the overall increased costs to customers from each of the proposers. Although the proposed contract included enhancement services, (mostly to the City of King, the other cities would be receiving about the same services) the RFP did not meet the overarching goal of reducing customer rates based on the increased economies of scale. Waste Management also submitted an unsolicited proposal for servicing King City only which had slightly lower rates than their 4-City proposal, but after further evaluation of that proposal by the city manager, the recommendation is to reject that proposal as well due to the considerable increase in costs to customer rates.
The proposals received were from the following companies:
• GreenWaste Recovery, LLC
• Recology, Inc.
• USA Waste of California, Inc. (Waste Management)
In consideration of the timeline and the current contract expiring on June 30, 2025, staff requests authorization from City Council to enter into discussions with both of the incumbent South Monterey County franchise haulers for a potential contract extension.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Rejection of the proposals demonstrates collaboration with the neighboring cities to secure waste collection services that include compliance with new State regulations for cleaner and safer communities.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: This action will allow the city to further re-revaluate other waste and recyclables collection options that are in the best interest of the community.
City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explain: This action will allow the city to evaluate the two incumbent south county waste haulers’ costs and determine best options for community residents and businesses.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No NIA
• Housing X Yes No NIA
• Recreation X Yes No NIA
• Environment X Yes No NIA
• Education X Yes No NIA
Explain: Waste and Recyclables Collection Services are part of the critical infrastructure needed for the community.
ALTERNATIVES
Alternative 1 – The City Council could approve staff’s recommendation.
Alternative 2 - The City Council could ask to negotiate exclusively with a single South Monterey County franchise hauler, i.e., either Tri-Cities Disposal & Recycling or Waste Management.
Alternative 3 - The City Council could direct staff to prepare a new Request for Proposals for the City individually.
Alternative 4 – The City Council could provide staff with other direction.
BUDGET IMPACT
There are no additional costs anticipated with approval of staff recommendation, other than administrative and legal support expenses to pursue a contract option prior to the expiration of the current contract term.
CONCLUSION
It is recommended the City Council Consider approval of Resolution No. 2023-64, A Resolution of the City Council of the City of Gonzales Rejecting All Proposals Received by the Cities of Gonzales, Soledad, Greenfield, and King (Cities) to Select a Qualified Contractor to Collect Solid Waste, Recyclables, and Organic Waste within the Boundaries of Each City as a Single Franchise Collection Zone; and direct staff to enter into discussions with the South Monterey County incumbent waste haulers, Tri-Cities Disposal & Recycling and Waste Management, for an extension of their current franchise agreements.
Attachments:
1. Resolution No. 2023-64