REPORT TO COUNCIL
SUBJECT
Title
Action on an Amendment No. 2 to an Agreement with Recology South Bay, dba Recology Santa Clara and Related Budget Amendment
Report
BACKGROUND
The current agreement with Recology Santa Clara (Recology) to provide residential curbside recycling services will expire on January 10, 2020. The City also has an exclusive franchise agreement with Mission Trail Waste Systems (MTWS) to provide residential garbage and organics services, as well as commercial garbage and recycling services at properties not zoned for "Industrial" use that will expire on December 31, 2021. As discussed during the November 13, 2018 Council meeting, the current market conditions are uncertain because of upcoming new short-lived climate pollutant regulations required by SB 1383 and a depressed recyclables commodities market.
At the November 13, 2018 Council meeting, Council directed staff to enter into negotiations with Recology for an amendment to the current agreement to provide residential recycling services through December 31, 2021 to align the residential recycling contract term with the residential garbage and organics services contract term. If negotiations were not completed by mid-December 2018, staff was directed to immediately enter into negotiation with a service provider for a successor agreement in accordance with the City Code or release a Request for Proposal (RFP) by February 28, 2019.
Recology began providing residential curbside recycling services for the City in 1996. The City conducted a competitive procurement for single-stream residential curbside recycling services in 2008. The City received proposals from five (5) contractors, with Recology being the lowest cost at $2.39/month for each household served. The next lowest cost proposed to provide residential curbside recycling services was $4.17/month per household served.
2008 Bid Prices
Company
Bid Price $/household
Recology
$2.39
Mission Trails
$4.17
Allied Waste
$4.60
G...
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