Position of Director Gayle McLaughlin (on why it is important to conduct a full RFP process at this point in time)
On May 2nd, 2023, the Richmond City Council “DIRECTED City staff to initiate procurement of a new solid waste collection service agreement through a competitive procurement Request for Proposals (RFP) process; and RECOMMENDED RecycleMore proceed with an RFP process for the Post-Collection Solid Waste Franchise Agreement”. The City Council voted in favor of this approach by a 6 to 1 vote. The Richmond City Council feels that this is the best way to go. Our RFP process is underway for a collection agreement, and the Council also recommends that an RFP process go out for the post-collection agreement. Below are some reasons why.
Having served as mayor for 8 years and going into my 9th year as a councilmember, I have heard from a lot of Richmond residents about their concerns about the contracts that Richmond has for collection and post-collection services. They have raised concerns (and still do) about the City’s current contracts, in cluding the City’s involvement in the Post-Collection Agreement. Constituents have repeatedly shared with me that they feel strongly that the City should be doing its due diligence in selection of haulers for these agreements. They were livid about past contracts not serving the community of Richmond well. The list of service complaints was monumental (costs, not enough services, unreliable customer service etc). Our community wants to do right by the new laws for recycling especially in this climate crisis era and they want us to choose the best possible scenario going forward.
Constituents have stated repeatedly that rubber-stamping without due diligence is not a good approach, especially for a long-term contract.
Without an RFP there is no way to confirm or guarantee an agreement extension will yield the lowest rates with quality services. The rates have already increased in addition to CPI due to SB 1383 and recycling rebate conditions. An RFP process could provide a process for incorporating the new costs and justification to the public .
Rates have been and will continue to increase on top of the Consumer Price Index (CPI) increases due to new state laws, market conditions, and requirements. Recently, Republic Services requested an increase under the “Change in law” clause. Within the last 10 years there have been newly adopted state laws and changes in technology.
EX. AB 1826 adopted 10/2014, SB 1383 adopted 2016, AB 827 adopted 2019 . So, factors to be considered include the market and economics, justification to the public, the age of the agreement and how that intersects with new best practices, and change in State laws.
Although some have shared input about doing an RFQ process to make a determination (rather than an RFP), concerns remain about that process taking more time and leaving us little to no time to conduct an extensive RFP process and the discussions and negotiations that must occur with respondents. My worry is that this will force us to go for a sole source contract without enough time to go through a rigorous and extensive RFP process and negotiations. I also want to add that some have said it will be expensive to conduct an RFP process, but it is my understanding it is generally the responsibility of respondents, mainly the selected respondent, to cover that expense.
Central Contra Costa County (RecycleSmart) voted to conduct competitive RFP for both collection and post-collection services citing: 1) consistent service complaints regarding late pick-ups over a long period of time; 2) during the recent negotiations for the extension of the current franchise agreement, Republic asked for rate increases; 3) RecycleSmart staff identified viable competitors for the needed services ; and 4) RFP process offered greater transparency and competitive rigor than does a sole-source negotiation.
In summary, opening this agreement to a competitive RFP provides the cities with more service options, competitive rates, and transparency which maximizes public support and comfort with rates and service outcomes. An RFP does not automatically equal a new solid waste hauler. Republic Services does have the advantage including but not limited to location, facilities, and historical presence. But a full RFP offers us the best scenario to understand what is available and what meets our needs in our communities. Speaking for myself and how I see our community at large (in particular our large low-income population), I think it would be unfair to them to not go through such a rigorous process in their interest.