While then-City Administrator Jason Stilwell negotiated cost reductions of from 44% to 14% over current Waste Management rates with GreenWaste Recovery, Stilwell adopted an “all or nothing” negotiation tactic over exceptions with Waste Management. The “all of nothing” tactic was supported by the City Council at its Regular City Council Meeting, February 2014, as follows:
C. Consideration of Resolution Authorizing the City Administrator to Initiate Negotiations with Green Waste Recovery for Franchised Solid Waste, Recycling and Organics Collection Services.
Vice Mayor TALMAGE moved to negotiate with the two parties predicated upon Waste Management removing the majority of all the exceptions it took to the model franchise agreement including the removal of all of the exceptions considered to be "high" or "medium" by February 18, 2014. Motion seconded by Council Member HILLYARD and carried unanimously.
With regard to Waste Management, the public record indicates a lack of negotiations between the City and Waste Management even after the Public Workshop, March 31, 2014, when the city council gave direction to Stilwell to negotiate with both GreenWaste Recovery and Waste Management.
ABSTRACT: Analysis of correspondence between the City of Carmel-by-the-Sea and Waste Management in 2014 shows that Waste Management/ Carmel Marina Corporation submitted “the most price competitive of all bidders and one that will translate to the most savings, reasonable rates and services for the citizens of Carmel-by-the-Sea,” according to Waste Management/ Carmel Marina Corporation. Furthermore, on February 18, 2014, Alex Oseguera, Vice-President and General Manager, Waste Management, Northern CA/Nevada Area wrote City Administrtor Jason Stilwell stating “It is unfortunate that we were penalized for reviewing the document and wanting to be entirely transparent (up front) as we enter into negotiations. Attached with this letter please find the past responses that were provided to the City's Consultant addressing specific exceptions and that demonstrate our flexibility and willingness to negotiate terms.”
“Carmel Marina Corporation submitted a proposal that is the most price competitive of all bidders and one that will translate to the most savings, reasonable rates and services for the citizens of Carmel-by-the-Sea. We strongly believe that our exceptions should not be the sole reason for not considering CMC as the winner.”
And, as Felipe Melchor, District Manager, Waste Management Carmel-Marina Corporation wrote City Administrator Jason Stilwell on April 4, 2014, “As mentioned in our Feb 18 letter, Carmel Marina Corporation/Waste Management is and will be reasonable as it negotiates all terms and conditions, including the exceptions. We believe that the items that we have raised regarding the RFP document will result in a contract that is fair and equitable for both parties, and it was our intention after reviewing the document to be entirely transparent (up front) as we enter into negotiations.”
“We strongly believe that our exceptions should not be the sole reason for not negotiating with WM. We are willing to provide clarity for each exception, and work with the city to discuss the exceptions that are of most concern to the city attorney.”
Yet, on April 7, 2014, after the March 31, 2014 Public Workshop, Subject: Trash and Recycling Services, City Administrator Jason Stilwell wrote an email to Emily Hanson, GreenWaste Recovery, stating “You all need the week to sort out what happened last week. We aren't in a good spot. The workshop was to solicit public input to refine negotiation strategy not to negotiate terms with the city council.”
“I have copied Yvette in my office to assist in scheduling a future meeting but I think Sharon, Rob, and GWR need to figure out how to get the framework for negotiations back. My schedule is not very flexible this week. I think it would be a mistake to involve a subset of the elected officials in the negotiations; that is what happened last week which is why Waste Management is back in the picture. Jason”
“AFTER MORE than 30 years serving residents and business owners in town, Waste Management will be replaced by GreenWaste Recovery, the Carmel City Council unanimously voted Tuesday (June 17, 2014). The new franchise agreement will begin next summer and run for 15 years, at an overall cost of about $30 million to customers,” according to reporting in The Carmel Pine Cone. And. “Most residents will see their rates increase by 14.4 percent over what they pay now, according to public services director Sharon Friedrichsen.”
Correspondence document between the City and Waste Management regarding a franchise agreement is embedded. And the FRANCHISE AGREEMENT BETWEEN CITY OF CARMEL-BY-THE-SEA AND GREENWASTE RECOVERY, INC. FOR SOLID WASTE, RECYCLING, AND ORGANICS COLLECTION SERVICES, JUNE 19, 2014 document is embedded.
City Council Workshop - Mar 31st, 2014
Correspondence between the City and Waste Management regarding a Franchise Agreement
Including email correspondence between City Administrator Jason Stilwell and Emily Hanson, GreenWaste Recovery
2014Including email correspondence between City Administrator Jason Stilwell and Emily Hanson, GreenWaste Recovery
FRANCHISE AGREEMENTBETWEEN CITY OF CARMEL-BY-THE-SEA AND GREENWASTE RECOVERY, INC. FOR SOLID WASTE, RECYCLING, AND ORGANICS COLLECTION SERVICES
JUNE 19, 2014NOTE: Exhibit G3 - Initial Rates for Collection Services
Residential Rates (Includes Solid Waste, Recyclable Materials, and Yard Trimmings)
Size Vol Total Rate
20 Gal $ 26.60
32 Gal $ 29.56
64 Gal $ 46.73
96 Gal $ 59.24
City hires new garbage company
By MARY SCHLEY, The Carmel Pine Cone, June 20, 2014, 5A
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