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<br /> 78 <br /> 3. Labor Considerations - The subject of prevailing wage, worker retention, and labor Page 5 <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 /> 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 /> 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 /> If the City is not satisfied with the performance management method andlor <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 /> 5. Contract Term - The SBWMA Board wiJ/ 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 /> 6. SBWMA Ownership of Collection Eauipment and Operatino Rollino 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 /> 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 /> 5 <br /> - <br />