Shock and Dismay Over Sole Garbage Bid and High Rates
No tax deduction allowed for ratepayers paying for city waste services.
Placing the cost of City Waste Services on private home garbage ratepayer billing rather than using the Piedmont General Fund Budget eliminates the tax deductibility of a legitimate municipal service, which should be covered by the Municipal Services Tax.
How much municipal cost for waste services will be shifted from the city budget to individual residents’ in their required monthly waste removal charges? The recently received Republic Services bid provides no breakout of the cost of providing the city service that is billed to ratepayers.
Questions have also been raised about the ratepayer fees for City services without a benefit to the individual ratepayer, which may be considered an unauthorized required tax.
Simultaneously, the City Council is moving ahead on considering a change to the City Charter to allow the city to accumulate more than the Charter prescribed maximum reserve of 25% of the annual budget. The city has been experiencing unprecedented increases in excess revenues which have been placed into various city reserve funds. Rather than using existing money for ongoing municipal services, such as city waste removal or the greatly needed pavement of substandard or damaged sidewalks, the city continues to ask for more funding from Piedmonters.
The voter enacted Piedmont City Charter states:
“The Council shall establish a fund known as the General Fund Reserve in an amount not to exceed twenty-five (25%) of the budget for the purpose of maintaining municipal services during periods of reduced revenues to the City, as well as meeting unforeseen contingencies and emergencies of the City.”
Council Moves Forward to Contract with Sole Source Bidder –
On July 17th, the Piedmont City Council accepted the proposal submitted by Republic Services for waste collection services beginning on July 1, 2018, notably imposing huge rate increases particularly for backyard services and no rate break for seniors or the disabled.
Numerous residents have expressed dismay and shock at the cost of procuring only one bidder and the expensive end result. It is not unusual for sole source procurement to result in unacceptably high costs. No breakout of the cost to go 30 feet into a backyard versus 100 feet or up many steep steps was offered.
Piedmont resident Alan Kong recommended “a re-procurement … with a non-responsive” penalty or “a more stringent annual renewal cap.”
Despite the long lead time, a new less complex RFP for Piedmont property owners will not be sent out in an attempt to acquire waste removal charges in line with other communities. Detailed contract negotiations will proceed on the basis of the lone bid by Republic Services.
Concerns over the huge increase in rates for garbage collection have produced suggestions from a range of individuals.
“From what I have read in Mr. Benoit’s report may be indicative of inappropriate discussions by the proposers. In some industries such as sanitation/waste disposal, where there is limited to no competition, the eligible participants will divide territories/cities. Periodically these territories/cities will be redistributed in an RFP re-bid process. It seems odd that 2 proposers declined to bid altogether while of the remaining 2 proposers (Waste Management and Republic), there was a formal “no bid” citing safety.
“Perhaps a re-procurement should be enacted with a qualifier that a non-responsive proposal will penalize/disqualify that party from future contract award considerations. Or implement a more stringent annual renewal cap (no greater than a legitimate index + X%, annually…and tie the contractor into a 5-10 year term contract with a stringent termination clause).
“However this is resolved, the seemingly damaged party will be the residents of the City of Piedmont. There are easy answers to this situation.” Alan Kong
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“What the City has left out in its online explanation of the process and in response to Mike Rancer’s thoughtful comment, is that Waste Management, which services many Oakland streets right next to Piedmont, wanted to use a different type of cart that matched to a lift on the trucks which would reduce their concern about worker injury. Piedmont did not want to investigate this thinking backyard service would not be possible. The Jan. 17 2017 staff report included my letter and research material; that material has Oakland provider Waste Management’s rate sheet which clearly shows Waste Management providing both curbside and backyard service.” Rick Schiller
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“Are the City’s requirements asking for something that is far too expensive? Maybe relaxing some of the requirements would result in lower prices, and more competitors for the contract.” Bruce Joffe
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“Maybe the problem is that Piedmont is too small to generate competitive bids or economies of scale. Given that Piedmont is completely surrounded by Oakland, and many of our streets cross the boundary into Oakland, has the city considered talking to Oakland about joining their contract and consolidating services to improve efficiency and lower our cost? It would be the height of negligence if our City Council simply rolled over and accepted this non-competitive bid. ” Michael Rancer
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“Those are enormous rate increases – did Republic provide a quantifiable basis? They admitted they blew the last bid – you have to wonder how good this estimate is. And their flat rate for backyard makes no sense – all Piedmont backyards are not created equal. Staff’s formula may have been too complex for Republic, so make it simple – scale backyard service to lot size.
“Bad month for ratepayers – sewer, garbage and water rates all go up.” Garrett Keating
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“Rick Schiller is to be commended for the extensive research and persuasive recommendations that he made.
“I hope that the shocked ratepayers will remember this when City Council election time comes around again. As a reminder: “Hear this, you foolish and senseless people, who have eyes but do not see, who have ears but do not hear: Should you not fear me?”
“Politics tends to be forgotten. Writing those quarterly checks is the “gift” that keeps on giving, and giving, and giving. ” Jim McCrea
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“July 14, 2017
Piedmont City Council
c/o John Tulloch, City ClerkJuly 17 Agenda: New Republic Services refuse contract.
Dear Mayor Wieler and Council,
It is what it is: one bid from Republic Services. Regrettably the preliminary cost estimates are for substantial increases of 60% for curbside service and 120% for backyard service. Considering the considerable increases, it is most unfortunate there will be no accommodation for seniors over 70. Staff indicated such an accommodation leaves the City vulnerable to legal challenge yet, perplexingly, this specific accommodation is common elsewhere and has not been legally challenged.
The Staff Report states “backyard service would be available to disabled residents at curbsides rates.” What is the mechanism for disabled qualification?
Mr. Benoit indicated, when we spoke at the Linda Triangle opening, that the new contract would include unlimited curbside green waste. This is most appropriate in lush, expansive Piedmont with its many large lots. Unlimited curbside recycling also seems appropriate and is in harmony with Piedmont’s embrace of ecological concerns.” Rick Schiller
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“I find it odd and inconsistent that Piedmont finds a senior exemption of backyard service at curbside rates contrary to State law as many Municipalities have this exemption. In Marin County Almonte, Alto, Belvedere, Corte Madera, Homestead, Marin County, Mill Valley, Strawberry and Tiburon provide exemptions for backyard service at curbside rates for (1) any age 70 Senior on signature alone that requests the service and (2) any disabled person with a doctor’s letter. The City of Berkeley has the same two exemptions and lowers the qualifying age to 62 and does not require a doctor’s letter for the handicapped exemption (form and code attached). City of Albany has both a disability exemption and an age 62 low-income discount exemption (see attached p 7). Santa Clarita has an age 60 low-income discount exemption (see attached p 7). No doubt there are many more California cities with an age based senior exemption of backyard service at curbside rates.” Rick Schiller
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“I think that there should be a provision that someone at age 75 (or pick a comparable age) or older should automatically be entitled to backyard collection at curbside rates. Will some noses get out of joint if they are thought to be “too old” to haul the cans to and from the curb and they don’t feel that way? If so, let THEM opt out of the reduced rates. “ Jim McCrea
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“I have not followed the Piedmont waste issue closely, but I did have a caution that may be useful. The City of Oakland spent a great deal on staff, consultants and public time to craft a detailed and specific RFP that outlined a great number of demands and requirements. Unfortunately, their efforts were rewarded with only one responsive bid from their current provider, Waste Management. This caused no end of trouble for the city ending up with recirculation of the EGO, eventual litigation and very increased rates. The 2016 Grand Jury report covers this problem pretty well. Piedmont should not repeat Oakland’s path on this. Also, collusion between garbage companies is not unknown. ” Michael Henn
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“Good news- the proposed contract has significant reductions in service levels in that unlimited recycling/composting and individual curbside pick-ups are eliminated from the contract which should lower rates. These services were likely the reason rates were increased so much in the last contract so their elimination now should lead to lower rates. Likewise, the scalable backyard service formula should result in a more accurate (and higher) rate for this service, again leading to a rate reduction for curbside service, the majority of Piedmont’s service.
“Bad news – for recycling, this contract is a serious step backwards. Specifically, the contract calls for a 60% diversion rate, a rate the city had already achieved before the advent of the cart system 10 years ago. And it ignores the 75% diversion rate that council set by resolution – the stretch goal for this contract is 70% by 2028. Many other east bay cities are achieving 75 % and our city has routinely been above 70%. Staff assumes that with the reduction in unlimited recycling, green waste will go to the landfill instead and result in an underestimate of our true diversion rate – this happened in the past. But it won’t now – Alameda County has banned the dumping of green waste in land fills and green waste is now properly sorted and credited. The contract should at least adjust the diversion targets to 65, 70, and 75% at a minimum to maintain the current level of recycling in town. To do the right thing, the contract should set the target at 75% as directed by Resolution 38-08.
“General Plan Goals and Policies: the staff report lists the numerous goals and policies this contract addresses (wish that had been done with chapter 17 revisions) but many are really not related to this service contract. To make true headway with our Climate Action Plan, this contract should require the use of biodiesel vehicles – this is likely the largest source of truck traffic GHG emission generated by the city and the city could achieve major reduction by mandating this in the contract.” Garrett Keating
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“May I suggest that a requirement be included that the carts be placed back on the curbs after emptying. When the carts are left in the street, as they usually are, they occupy parking spaces where parking is very limited to begin with. I asked the company to include this in its instructions to its drivers, but compliance lasted approximately one week. This is a minor irritation but an irritation nonetheless.” Susan McCreary
