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<br />September 25, 2006 - ATTACHMENT 1 <br /> <br />7A <br />Page 9 <br /> <br />3. Labor Considerations - The subject of prevailing wage, worker retention, and labor <br />peace have been discussed by PAC and the Board will need to develop a policy <br />related to these matters. PAC is currently advising that the collection and Shoreway <br />operations contractors provide their employees with "competitive wages and <br />benefits" and provide employment preference to the current contractor's employees. <br />This recommendation was made to provide a balanced approach for labor relations <br />without requiring prevailing wages or hiring of all current contractors' employees. <br /> <br />The PAC and the Board have also had several meetings with representatives from <br />Teamster Local 350 (the union that represents Allied's drivers) and the San Mateo <br />County Central Labor Council. While the PAC and the labor representatives share <br />roughly similar goals, there is a divergence of opinion as to how to specify these <br />goals in the RFP. The PAC is recommending less restrictive language in an effort <br />to balance the needs of the workers with those of the residents and businesses who <br />will benefit by more contractors submitting proposals. <br /> <br />4. Performance Standards - The performance standards included in the existing <br />franchise agreement related to missed pick-ups, long call hold times at the customer <br />service center, etc. have not incentivized Allied to provide the quality of service <br />Redwood City staff and customers expect. The SBWMA Board will consider a two- <br />phased performance management method for the collection and facility operation <br />contracts to provide both positive and negative incentives related to diversion, <br />quality of collection and operations services, and responsiveness to customers. In <br />the first phase, contractors would be rewarded for superior performance. In the <br />second phase, the contractor's substandard performance would be penalized and <br />contract management tools would be used to more closely monitor, and thereby <br />enhance, the contractor's performance. <br /> <br />If the City is not satisfied with the performance management method and/or <br />performance standards proposed by the SBWMA, the City can modify or replace <br />them (provided an agreement will be reached with the selected waste hauler) with <br />their own standards because the City will enter into a separate franchise agreement <br />with the selected collection contractor. [incentives: 0% to +0.75%] <br /> <br />5. Contract Term - The SBWMA Board will consider contracting with the collection <br />contractor for an initial term of seven years with the right to extend for a maximum of <br />20 years. <br /> <br />6. SBWMA Ownership of Collection Equipment and OoeratinQ RollinQ Stock - The <br />SBWMA will research ownership and financing of vehicles, containers, and on-site <br />rolling stock needed for operation of the Shoreway facility. If legally feasible and <br />financially advantageous, the SBWMA shall offer, as an option to proposers, that <br />the SBWMA will own and finance the equipment and lease it to the contractor(s). <br />This may result in more competition as doing so would reduce the capital <br />investment that needs to be raised by the firm that is to be awarded the collection <br />contract. [-5.30% to -0.51%] <br /> <br />7. Contractor's Compensation - Currently, the collection and facility operations <br />contractor's compensation is determined through a detailed annual review process, <br />which is complex and time-consuming. The SBWMA Board will consider a <br />simplified compensation method that involves conducting a detailed review every <br /> <br />'" <br />