City of Sunnyvale

California
March 30, 2001

Memorandum

To: Mayor and City Council

From: Robert LaSala, City Manager

Subject: Bay Counties Waste Services Proposal for Annually Renewable Franchise Agreement

This memo is to make you aware that staff has received, considered, and declined to pursue a proposal by Bay Counties Waste Services (BCWS) regarding the refuse collection franchise agreement.  BCWS (doing business in Sunnyvale as Specialty Solid Waste & Recycling) recently met with the Public Works Director and his staff to propose a major amendment to the structure of the franchise.  The current refuse collection contract will expire in 2011 at the end of a 20-year term.

The change proposed by BCWS would have extended the contract each year, beginning in 2001, for an additional year into the future.  This would, in effect, give BCWS a perpetual 10-year contract.

Following the receipt of the BCWS proposal I asked the Directors of Finance and Public Works to review it, analyze its pros and cons, and provide me with a recommendation.  The proposal, its benefits and drawbacks, and the recommendation are described in more detail in the attached letter from BCWS’s accountant and in the February 9, 2001 memorandum from the Directors of Finance and Public Works (also attached).  I have also attached my letter of this date to William Dobert, Chief Financial Officer of BCWS, in which I decline the proposal.

Please feel free to contact me should you have any questions regarding this matter.

Attachments (3)

Attachment 1

Attachment 2

Attachment 3 (.pdf format)

Cc:          Mary Bradley, Director of Finance

              Marvin Rose, Director of Public Works