[00:00:03]
OUR TIME IS 1:03 PM ON THE NINTH DAY OF FEBRUARY, 2023.
WE'LL CALL OUR SPECIAL SESSION TO ORDER.
MADAME CLERK, COULD YOU READ THE ROLE? COUNCIL MEMBER BRAVO HERE.
COUNCIL MEMBER MCKEE RODRIGUEZ.
PRESENT, COUNCIL MEMBER VIA RON.
[ITEMS]
EVERYBODY.WE HAVE ONE ITEM ON OUR AGENDA TODAY, SO I'LL TURN IT RIGHT OVER TO OUR CITY MANAGER, ERIC WALSH.
UM, THIS AFTERNOON WE'VE GOT A PRES SOLICITATION BRIEFING ON, UM, OUR MUNICIPAL SOLID WASTES DISPOSAL CONTRACTS.
UM, AND DAVID NEWMAN WILL KINDA WALK US THROUGH AND GIVE YOU CONTEXT ON, UH, THE TONS THAT WE COLLECT PER YEAR, UM, FROM THE, UH, 370,000 RESIDENTIAL CUSTOMERS WE HAVE.
UM, THE CITY DOES NOT OPERATE ANY LANDFILLS AND, UH, CURRENTLY UTILIZES THREE CONTRACTS FOR DISPOSAL THAT ALL EXPIRE IN, UH, 2025.
AND SO WE'RE WORKING NOW TO GET IN PLACE AGREEMENTS, UH, FOR THE FUTURE.
UM, SO WITH THAT, I'LL TURN IT OVER TO DAVID NEWMAN, A PRETTY QUICK PRESENTATION AND LOOKING FORWARD TO THE COUNCIL CONVERSATION.
THANK YOU, ERIC MAYOR, CITY COUNCIL.
UM, TODAY WE'RE GONNA TALK ABOUT OUR DISPOSAL CONTRACT.
IT'S AN IMPORTANT CONTRACT FOR OUR DEPARTMENT FOR THE CITY OF SAN ANTONIO.
THIS IS THE CONTRACT OR CONTRACTS THAT DECIDE WHERE APPROXIMATELY 400,000 TONS OF GARBAGE, UH, ARE DISPOSED OF ON AN ANNUAL BASIS.
AND, UH, THE LAST TIME WE HAD TO CONSIDER THIS WAS ABOUT 30 YEARS AGO, SO FORTUNATELY WE DON'T HAVE TO CONSIDER IT ALL THAT OFTEN.
UH, THIS IS A CONTRACT FOR DISPOSAL OF GARBAGE THAT CITY CREWS COLLECT.
THIS IS GARBAGE, UH, THAT WE COLLECT IN OUR BROWN CART.
IT CONSISTS OF, UM, OF, OF, OF WASTE THAT OUR RESIDENTS THROW AWAY DEAD ANIMALS, BULKY WASTE, THE LITTER BASKETS THAT WE COLLECT DOWNTOWN.
THAT'S THE KIND OF STUFF THAT WE'RE TALKING ABOUT.
WE ASSUME THAT THE, THE DISPOSITION OF THIS WASTE WOULD BE IN A LANDFILL.
UH, HOWEVER, WE ARE CERTAINLY OPEN TO BENEFICIAL REUSE OPTIONS.
SO IF, IF SOMEONE WERE TO PROPOSE, UH, TO UTILIZE THIS WASTE AS FUEL, WE WOULD BE OPEN FOR THAT AND CONSIDER THAT THIS IS A CONTRACT FOR DISPOSAL ONLY, NOT COLLECTION.
UH, WE WOULD DELIVER THIS MATERIAL TO THE FACILITY.
THIS IS A PROFESSIONAL SERVICES AGREEMENT, SO WE WILL BE ISSUING OUT A REQUEST FOR PROPOSALS.
THE PROPOSED TERM IS 10 YEARS WITH FIVE OPTIONAL ONE YEAR, ONE YEAR RENEWAL PERIODS.
UH, THE ESTIMATED VALUE, UH, FOR THE FIRST YEAR IS EXPECTED TO BE BETWEEN, UH, 12 TO SAY $13 MILLION A YEAR.
UH, IF WE EXTEND THIS PAST THE BASE CONTRACT OF 10 YEARS, UH, THAT VALUE WOULD BE HIGHER THAN THE 127 MILLION.
UH, AND ALSO I'D LIKE TO ADD THAT WE EXPECT TO PAY AN ESCALATOR, UH, FOR EACH YEAR OF THE CONTRACT.
SO THAT WOULD BE THE, THE FIRST YEAR PRICE, BUT, UH, WOULD GO UP AFTERWARDS.
TODAY WE HAVE THREE CONTRACTS.
THE, THE THIRD CONTRACT HAS TWO PARTS.
UH, ONE IS THE OPERATION OF OUR TRANSFER STATION.
THE SECOND PART OF THAT CONTRACT IS FOR LAND FILLING.
UH, AND IT EXPIRES IN 2025, BUT IT HAS, UH, SOME ADDITIONAL, UH, OPTION YEARS ATTACHED TO IT.
SO ON THE LEFT YOU CAN SEE THE STANDARD OUTREACH FROM, UH, FINANCE.
WE EXPECT TO RECEIVE FIVE TO SIX RESPONSES.
AND FOR THAT MATTER, WE WANT TO AWARD MULTIPLE CONTRACTS.
WE DON'T WANT TO PUT ALL OUR EGGS INTO ONE BASKET, SO WE EXPECT TO AWARD SEVERAL CONTRACTS.
THE PANEL MEMBERS ON THE RIGHT, UH, INCLUDE MR. MCCAREY, MYSELF, UH, JOSEPHINE VALENCIA, OUR DEPUTY DIRECTOR, MELANIE KEATON, OUR ASSISTANT DIRECTOR, AND CARA CRUMMY, WHO IS OUR CONTRACT MANAGER.
NOW, UH, THIS IS A PRELIMINARY PANEL, UH, AND WE WERE TALKING THAT WE MAY WANT TO EXPAND THIS, UH, AND INCLUDE SOME ADDITIONAL PERSONNEL WITH SOME DIFFERENT, UH, PERSPECTIVES HERE.
SO, UH, UH, WE ARE CERTAINLY LOOKING AT EXPANDING THAT PANEL.
[00:05:01]
SO WITH RESPECT TO THE EVALUATION CRITERIA, THESE ARE TYPICAL OF RFPS THAT WE HAVE ISSUED OUT IN THE PAST.EXPERIENCE, BACKGROUND, QUALIFICATIONS.
THESE ARE VERY IMPORTANT TO US.
UH, THEY'RE WORTH 35 POINTS, AND THEY'RE IMPORTANT BECAUSE THE VENDOR IS GOING TO BE MANAGING OUR WASTE FOR IN PERPETUITY.
SO WE WANNA MAKE SURE THAT THE COMPANY, UH, IS STRONG FINANCIALLY, UH, THAT THEY HAVE A GOOD TRACK RECORD OF PERMIT COMPLIANCE WITH THE STATE, THAT THEY HAVE A GOOD TRACK RECORD OF CONTRACT COMPLIANCE WITH CITIES AND OTHERS, UH, THAT THEY'RE ALSO A GOOD NEIGHBOR TO ADJACENT PROPERTIES, ET CETERA.
SO THOSE ARE THE TYPES OF THINGS THAT WE WOULD BE LOOKING AT IN EXPERIENCE, BACKGROUND, QUALIFICATIONS, THE PROPOSED PLAN, UH, THAT IS WHAT IS PHYSICALLY, UH, ON THE GROUND AS WELL AS OPERATIONAL COMMITMENT.
AND THESE ARE THINGS THAT WE WOULD LOOK AT, UH, THAT WOULD INCLUDE CERTAINLY THE LOCATION.
UH, THE FACILITY NEEDS TO BE WITHIN A TWO HOUR DRIVE OF SAN ANTONIO.
THE QUEUING AND PROCESSING, WE WANT SPEED TO GET IN AND OUT, AND SO WE NEED A, A GOOD PROCESS FOR GETTING IN AND OUT.
UH, WE WANNA MAKE SURE THAT THE VENDOR HAS WEATHER CONTINGENCIES.
UH, AS WELL AS WITH RESPECT TO OPERATIONAL COMMITMENTS.
UH, WE WANT TO, TO MOVE THROUGH THE FACILITY QUICKLY.
WE WOULD LIKE THE, THE FACILITY TO STAY OPEN LATE WHEN WE NEED THEM TO STAY OPEN LATE, UH, BE OPEN ON WEEKENDS WHEN WE NEED THEM TO BE OPEN ON WEEKENDS.
WITH RESPECT TO PRICING, THIS IS WHERE 20 POINTS, UH, LOCAL PREFERENCE PROGRAM IS 10 AND VETERAN OWNED SMALL BUSINESS FIVE POINTS, UH, FOR THIS CONTRACT, AUDITED FINANCIAL STATEMENTS ARE REQUIRED, AND S BETA PROGRAM IS WAIVED.
I DO WANNA MENTION, UH, BACK ON THAT LAST SLIDE REAL QUICK, THAT WITH RESPECT TO THE PRICING, UH, WE HAVE HIRED A CONSULTANT.
HIS NAME IS RUDY RODRIGUEZ, TO HELP US, UH, WITH THE, THE NEGOTIATIONS WITH THE, UH, THE VENDORS.
AND, UH, AND SO I'LL, I'LL SPEAK A LITTLE BIT MORE TO THAT NOW.
UH, WE WANT TO GET YOUR INPUT TODAY SO THAT WE CAN ADVERTISE THIS BY MARCH THE FIRST.
WE WILL ADVERTISE IT FOR 60 DAYS.
I EXPECT THAT WE WILL BE ABLE TO, UM, MAKE SELECTIONS PRETTY QUICKLY WITH THE EVALUATION PANEL.
UH, BUT THEN WE WILL BE REQUESTING BEST AND FINAL OFFERS.
SO THERE WILL BE A PERIOD OF NEGOTIATION, UH, BEFORE WE CAN RETURN BACK TO CITY COUNCIL.
BUT I WOULD HOPE THAT WE COULD DO THAT BY LATE SUMMER, EARLY FALL.
UH, THESE CONTRACTS THAT WE CURRENTLY HAVE IN PLACE DO NOT EXPIRE UNTIL 2025, SO IF WE NEED SOME ADDITIONAL TIME, WE COULD CERTAINLY TAKE THAT.
SO THAT CONCLUDES MY PRESENTATION.
THANK YOU VERY MUCH, UH, FOR THE PRESENTATION, DAVID.
WE'LL GO TO OUR COUNCIL DISCUSSION NOW.
WE'LL START WITH COUNCIL MEMBER KEO.
THANK YOU FOR THE PRESENTATION.
UM, I'M JUST, I WANT A CLARIFICATION ABOUT THE NUMBER OF CONTRACTS.
HOW MANY CONTRACTS DO WE HAVE OUT NOW TODAY? WE, TODAY WE HAVE THREE CONTRACTS AND WE ARE GOING TO, HOW MANY ARE WE GONNA CONTINUE WITH THREE OR, UH, THREE, MAYBE FOUR OR MORE.
UH, WE'RE OPEN TO MORE THAN THREE.
I MEAN, I HEARD YOU SAY THAT WE SHOULD SORT OF DIVERSIFY IT, MAKE SURE THAT, UM, ALL OUR BASES ARE COVERED.
BUT HOW ARE THE CONTRACTS GOING TO BE DIVIDED UP? I MEAN, WHAT KINDS OF CONTRACTS INDIVIDUALLY ARE THEY? THAT'S WHERE THE HARD PART COMES IN, BECAUSE I EXPECT THAT AS WE NEGOTIATE THE BEST PRICING THAT WOULD COME WITH A COMMITMENT ON HOW MUCH OF A MINIMUM AMOUNT TO DELIVER TO THAT FACILITY.
AT THE SAME TIME, WE NEED FACILITIES THAT ARE CLOSE TO OUR ROUTES.
SO WE MAY WANT, WE WOULD WANT TO MAKE SURE THAT WE'RE SENDING MATERIAL THAT'S, UH, FROM A, A ROUTE TO THE CLOSEST FACILITY.
UH, SO WE'RE GOING TO HAVE TO WORK AND, AND FIND THAT BALANCE AND BRING THAT BACK TO YOU.
BUT, UH, WE WILL BE WORKING TO MAKE IT THE MOST ADVANTAGEOUS TO THE CITY.
THEN, UM, HOW MANY CORRECT? NO, NO, MA'AM.
DEPENDING ON, ON CORRECT WHAT YOU JUST SAID, ALL THOSE DIFFERENT FACTORS.
AND WILL WE GET A BRIEFING ON THAT LATER? OH, ABSOLUTELY.
WELL, I LOOK FORWARD TO THE R F P COMING OUT.
UM, RIGHT NOW, WHAT'S OUR CURRENT CONTRACT?
[00:10:01]
WHAT WAS THE LENGTH OF TIME? 30 YEARS.AND WHAT IS YOUR PROPOSED AMOUNT OF TIME FOR THIS CONTRACT? 10 YEARS FOR A BASE CONTRACT WITH FIVE ADDITIONAL ONE YEAR.
AND THE CURRENT CONTRACT WAS THREE AWARDS? YES.
UM, AND I'LL GET TO THAT IN A LITTLE BIT.
UM, ERIC, YOU MENTIONED THAT WE DON'T OPERATE ANY OF THESE, UH, DISPOSAL SITES, BUT DON'T WE OWN SOME, DON'T WE OWN SOME OF THESE? WE DO OWN A HANDFUL OF CLOSED LANDFILLS.
THE LAST ONE THAT WAS OPEN AND AND ACCEPTED WASTE, UH, WAS NELSON GARDENS.
IT CLOSED IN 1993, WHICH IS ABOUT WHEN THESE CONTRACTS STARTED.
SO DAVID, YOU THE COUNCILMAN MAY BE TALKING ABOUT THE, THE FACILITY THAT WE HAVE.
YOU TALKING ABOUT THE TRANSFER STATION? YEAH, THAT ONE.
ANY OTHER, OTHER SITES THAT WE OWN THAT WE'RE LEASING TO THE, TO THE CONTRACTORS? UH, THE TRANSFER STATION WAS CONSTRUCTED A LITTLE BIT BEFORE MY TIME.
UH, I BELIEVE IN THE EIGHTIES.
UH, IT IS A CITY OWNED FACILITY AND IT IS CURRENTLY CONTRACT AND IT'S ONE OF THE CONTRACTS THAT I'M I REFERENCED IN THE PRESENTATION.
SO BASICALLY THIS IS KIND OF A PERFORMANCE BASED CONTRACT.
WE JUST SAY, HEY, WE GOT A 400,000 TONS.
HOW ARE YOU GONNA DO IT? AND WHERE ARE YOU GONNA PUT IT? THAT KIND OF THING.
IN, IN YOUR PROPOSAL, IS THAT KIND OF HOW THIS IS BEING LAID OUT? SO I I, IT IS ABSOLUTELY A PROFESSIONAL SERVICES AGREEMENT.
IT'S IMPORTANT THAT WE HAVE A GOOD CONTRACTOR OR CONTRACTORS THAT ARE, UH, RESPONSIBLE AND, AND, AND ALL OF THOSE THINGS.
I DO WANT TO SAY THAT THE TRANSFER STATION IS NOT A PART OF THIS AT ALL.
IT, THIS IS STRICTLY DISPOSAL.
IT WAS OUR THOUGHT THAT WE LINE OUT, UH, ESTABLISH THOSE CONTRACTS SO THAT WE KNOW WHERE THE MATERIAL IS GONNA GO BEFORE WE START TALKING ABOUT, UH, A TRANSFER STATION OR HOW THAT WOULD BE HAULED TO IT.
UM, IN THE CURRENT CONTRACTS, YOU SAID AT 30 YEAR CONTRACTS, WHAT ARE SOME OF THE LESSONS LEARNED? BECAUSE THAT'S A LONG TIME TO HAVE A CONTRACT, AND WHAT ARE WE APPLYING TO THIS CONTRACT THAT WE LEARNED FROM THIS CURRENT CONTRACT? I THINK THE BIGGEST THING IS THAT WE'VE SHORTENED THE TERM TO A 10 YEAR BASED TERM, AND THAT'S THE MOST SIGNIFICANT THING.
UM, THERE MAY BE SOME LANDFILLS OUT THERE THAT WANT, UH, A A LOT OF MATERIAL AND, AND WOULD WANT A LONGER TERM, BUT, UH, IT'S OUR UNDERSTANDING THAT MOST WOULD PROBABLY WOULD, WOULD PREFER A 10 YEAR TERM WITH SOME OPTION YEARS.
AND SO YOU'VE GOTTEN FEEDBACK FROM INDUSTRY ON THAT? WE HAVE SOME.
AND YEAH, I'D, I'D LIKE TO SEE WHAT THAT FEEDBACK HAS BEEN.
ON A SHORTER, SHORTER CONTRACT, BECAUSE, YOU KNOW, LOOKING ACROSS WHAT I'VE DEALT WITH, THE LONGER THE PERIOD, THE MORE VALUE YOU GET.
YOU KNOW, THEY CAN AMORTIZE THEIR COSTS OVER A LONGER PERIOD OF TIME AND, UM, MAKE THEIR PROFITS, WHICH EVERYBODY IS ENTITLED TO, UH, OVER A LONGER PERIOD OF TIME INSTEAD OF SHORTENING THAT.
SO I, I, I NEED SOME MORE, SOME MORE DETAILS ON THAT.
IF I COULD, UH, WE WOULD BE OPEN TO THAT IN THE NEGOTIATION, SO WHEN WE REACH BACK OUT TO THESE COMPANIES, UM, AND IF THEY WANT TO EXTEND IT FOR A LONGER TERM, UH, I WOULD BE OPEN TO THAT.
AND I THINK THAT'S SOMETHING THAT WE BRING BACK TO YOU FOR, TO GET THAT ECONOMIES OF SCALE THAT YOU'RE TALKING ABOUT.
THAT I'D REALLY LIKE TO SEE WHAT THE FEEDBACK WAS FROM THE INDUSTRY ON THE LENGTH OF THE TERM OF THE CONTRACT AND, AND WHAT, WHAT, WHAT THEY SAID ABOUT THAT.
UM, YOU SAID THAT YOU'RE INTERESTED IN THREE OR MORE CONTRACTS TO COVER THIS.
UM, WHY NOT GO WITH ONE CONTRACTOR? AGAIN, IT'S ECONOMIES OF SCALE TO GET BETTER PRICING.
UH, FOR A CONTRACT LIKE THIS, WHY NOT GO TO ONE? WE HAVE A LARGE AMOUNT OF, OF GARBAGE 400,000 TONS.
UH, AND, AND WE HAVE TO DISPOSE OF, OF, OF, OF A LOT OF THAT EVERY SINGLE DAY.
AND SO WE NEED TO BE ABLE TO DIVERSIFY IN CASE THERE'S AN ISSUE.
A HIGHWAY COULD BE CLOSED, UH, FOR WHATEVER REASON.
IF A FACILITY WAS TO BE CLOSED, UH, WE WOULD HAVE ANOTHER LOCATION TO GO TO.
BUT ALSO THE LOGISTICAL REASON OF HAVING THE FACILITY CLOSE TO THE ROUTE IS VERY IMPORTANT TO MY CREWS.
UH, I BELIEVE WITH 400,000 TONS COUNCILMEN, I THINK THINK YOU'VE GOT ENOUGH ECONOMIES OF SCALE EVEN DIVIDING IT UP, UH, AMONGST A FEW VENDORS.
SO YOU'RE SAYING ONE CONTRACTOR CAN'T HAVE
[00:15:01]
MULTIPLE SITES IN THEIR PROPOSAL? IT'S NOT SOMETHING I WOULD RECOMMEND TO YOU.IT'S NOT SOMETHING I WOULD WANT TO DO FOR, UH, AND, AND BY THE WAY, WE RECENTLY REBALANCED OUR ROUTES TO TAKE ADVANTAGE OF WHERE OUR CURRENT FACILITIES ARE LOCATED.
AND SO TO REDO THAT WITH A SINGLE FACILITY THAT, WELL, I'M NOT SAYING A THAT, I'M NOT SAYING YOU CAN HAVE A SINGLE CONTRACTOR WITH MULTIPLE SITES.
YOU DON'T HAVE TO HAVE A SINGLE CONTRACTOR WITH ONE SITE.
UM, YOU MIGHT GET BETTER ECONOMIES OF SCALE HAVING A SINGLE CONTRACTOR, BUT THEM HAVING MULTIPLE SITES.
UM, SO YOU'RE SAYING THAT THESE SITES ARE TIED TO OUR ROUTES, SO WE'RE KIND OF TYING THEIR HANDS ON WHAT THEY'RE GONNA BE PROPOSING? YEAH.
LET ME SEE IF I UNDERSTAND YOU CORRECTLY.
UM, THERE ARE COMPANIES OUT THERE THAT HAVE MORE THAN ONE LANDFILL.
IS THAT WHAT YOU'RE REFERRING TO? YEAH.
I THINK THAT'S CERTAINLY AN OPTION THAT, UH, WE WOULD BE VERY INTERESTED IN.
I MEAN, IF THERE'S A PROPOSAL THAT COMES IN FROM ONE CONTRACTOR SAYING WE'RE GONNA DO EVERYTHING, UH, WITH ONE CONTRACT AND WE HAVE MULTIPLE SITES THAT, UM, YOU'RE, YOU'RE ABLE TO GET TO WITHIN A REASONABLE AMOUNT OF TIME, THAT KIND OF THING.
UH, I DON'T THINK WE SHOULD EXCLUDE IT SAYING THAT WE'RE HOPING FOR THREE OR FOUR CONTRACTORS OUT THERE.
UH, I MEAN, I WOULD, I WOULD, UNLESS THERE'S OTHER CITIES.
ARE THERE OTHER CITIES THAT HAVE ONE, ONE CONTRACTOR OUT THERE? HAVE WE BENCHMARKED WITH OTHER CITIES? UH, WE DO BENCHMARK WITH OTHER CITIES OFF THE TOP OF MY HEAD.
I DON'T KNOW OF WHICH ONES, BUT I WOULD ASSUME THAT THERE ARE A FEW CITIES THAT ONLY USE ONE FACILITY.
UM, BUT I, I, I, I WOULD NOT EXCLUDE THAT.
UH, AND I THINK THAT IS A, A CERTAINLY A VERY GOOD THING IF THAT COMPANY HAS MULTIPLE FACILITIES.
I AGREE WITH YOU THERE, BUT I ALSO O WE'LL STRESS TO YOU TODAY AND PROBABLY WHEN WE'RE LOOKING AT THE, THE, UH, POSTS, SOLICITATION B SESSION THAT WE NEED TO DIVERSIFY, UH, FACILITIES, LOCATIONS, ET CETERA.
AND, AND I THINK WE'LL HAVE A, A BETTER CONVERSATION AT THAT POINT.
BUT, BUT GOING INTO IT TODAY, THAT'S WHAT I BELIEVE.
UM, ON SLIDE FOUR, YOU MENTIONED THIS VENDOR IS GONNA BE IN PUR PERPETUITY.
WHAT, WHAT HOPE PERPETUITY MEANS FOREVER.
IT'S BURIED IN THE GROUND AND, BUT THE CONTRACT'S NOT FOREVER.
BUT OUR LIABILITY WOULD LAST FOREVER.
AND I'LL LOOK TO A LEGAL PERSON TO NOD
I, THE, THE, THE LI CONTRACT TO ANSWER THE LIABILITY QUESTION, COUNCILMAN IT, IT DEPENDS ON WHAT, WHETHER WE'RE TALKING ABOUT, WHETHER IT BE ENVIRONMENTAL LAWS OR OTHER LAWS, BUT IT, IT'S SOMETHING THAT WE WILL SURE.
BUT THE CONTRACTS THEMSELVES ARE NOT IN PERPETUITY.
THAT, THAT JUST PERKED UP MY EARS WHEN I HEARD THAT IT'S IN PERPETUITY.
UH, 'CAUSE THIS IS A, YOU'RE RECOMMENDING A TENURE, TENURE CONTRACT FOR, FOR THESE, UM, UM, LOCAL PREFERENCE AND VETERAN-OWNED BUSINESSES.
UH, ARE, ARE WE, HOW ARE WE STRUCTURING THAT IN THE, IN THE R F P IS? IT'S FOR, UM, WHAT TYPES OF SERVICES? OR IS IT UP TO THE CONTRACTORS TO SAY, YEP, WE GOT THIS VETERAN OWNED BUSINESS TO DO THIS? YEAH, I MEAN, ESSENTIALLY FOR LOCAL PREFERENCES, UM, BASED ON THE DEFINITION, IF THEY ARE, IF THEY HAVE A BUSINESS THAT RESIDES INSIDE THE CITY LIMITS OF SAN ANTONIO, THEY'LL BE CONSIDERED LOCAL, HEADQUARTERED IN SAN ANTONIO, GET THE FULL 10 POINTS, FIVE POINTS IF THERE'S A SIGNIFICANT BUSINESS PRESENCE.
IF IT'S A VETERAN OWNED BUSINESS, THEN UM, THERE IS NO GEOGRAPHIC PREFERENCE.
YOU DON'T HAVE TO BE IN SAN ANTONIO, YOU CAN BE NATIONWIDE, THEN YOU WOULD GET THE FIVE POINTS.
BUT WE'RE NOT SAYING THEY HAVE TO PERFORM, UH, A CERTAIN AMOUNT OF BUSINESS OR ANYTHING LIKE THAT? NO.
THEY CAN JUST BE ON THE TEAM AND THEY GET THE POINTS.
UM, FOR VETERANS, YOU'D HAVE TO BE VETERAN OWNED.
UM, AND YOU HAVE TO BE LOCALLY, YOU HAVE TO BE HEADQUARTERED.
IT WOULDN'T APPLY THAT IF THEY WERE A SUBCONTRACTOR.
AND THEN, UH, JUST LOOKING AT THE SCHEDULE, DAVID, UM, I'M REALLY CONCERNED ABOUT THE TIME FROM THE, UM, YOU KNOW, YOU GOT THE RELEASE DATE AND THEN THE PRE-SUBMIT CONFERENCE, YOU KNOW, MARCH, MARCH TILL MAY, AND THIS IS A BIG CONTRACT.
I, I WOULD, I'D LIKE TO SEE A LITTLE BIT MORE TIME RIGHT UP FRONT TO GIVE CONTRACTORS AN OPPORTUNITY TO BUILD, PUT GOOD TEAMS TOGETHER, UNDERSTAND THE, THE R F P AND PUT A GOOD PROPOSAL TOGETHER.
SO I'D REALLY LIKE TO EXTEND THAT SINCE, SINCE THIS, SINCE THESE AREN'T EXPIRING TILL 25,
[00:20:01]
LET'S PUT A LITTLE BIT MORE TIME UPFRONT TO GET A GOOD PROPOSAL TOGETHER, UH, THAT Y'ALL CAN, Y'ALL CAN MAKE A GOOD RECOMMENDATION ON.SO I, I'D LIKE A LITTLE BIT MORE TIME UPFRONT.
THIS IS A MASSIVE CONTRACT, SO LET'S MAKE SURE WE GIVE THEM ENOUGH TIME TO PUT A GOOD, GOOD PROPOSAL TOGETHER.
AND CAN YOU TELL ME WHY IS IT THAT WE'VE, WE'RE GOING FROM A 30 YEAR CONTRACT TO A 10 YEAR CONTRACT IN SOME, UH, CONVERSATIONS THAT WE HAVE HAD? UH, THE PREFERENCE WOULD BE TO LIMIT IT TO A 10 YEAR TERM JUST BECAUSE OF, UM, THE, THE FUTURE BEING SOMEWHAT UNKNOWN AND, AND THE, THE PREFERENCE WOULD BE A SHORTER CONTRACT VERSUS A, A LONGER CONTRACT.
SO I AGREE WITH THE STATEMENT OF THE FUTURE BEING UNKNOWN AND A PREFERENCE FOR A SHORTER CONTRACT.
I'M JUST WONDERING HOW WE LANDED AT 10 30.
SEEMS, SEEMS, YOU KNOW, INCREDIBLY LONG TO ME, TENSE FEELS LIKE IT COULD STILL BE TOO LONG.
I'M WONDERING WHAT THE STANDARD IS NOWADAYS.
I'M JUST WONDERING IF, UH, YOU KNOW, WHAT, UM, WHAT, WHAT THE FUTURE LOOKS LIKE IN TERMS OF POTENTIALLY PEOPLE REDUCING THEIR HOUSEHOLD WASTE, RECYCLING MORE.
IF WE CAN GET PEOPLE TO RECYCLE MORE THAN MY, AND, AND MY, MY, I GUESS MY QUESTIONS ARE SPECIFICALLY IN, UH, IF THERE'S MANDATORY MINIMUMS THAT WE'RE SUPPOSED TO DELIVER IN TERMS OF SOLID WASTE.
AND CAN THOSE TRENDS CHANGE OVER TIME? AND IF THEY DO, ARE WE LOCKED IN TO SOMETHING FOR 10 YEARS? OKAY.
I, THERE'S A LOT OF QUESTIONS THAT I WANNA ANSWER ON THAT.
UM, LET ME START BY SAYING THAT AS WE BEGIN TO NEGOTIATE WITH THESE COMPANIES, IF THEY WANT A LONGER TERM, AND MR. MCCAREY MENTIONED WAYS TO ENERGY, YOU WOULD WANT A LONGER TERM TO RECOUP THE INITIAL INVESTMENT.
AND SO I THINK THAT'S SOMETHING THAT WE CONSIDER AND, AND, AND, UH, STRONGLY CONSIDER AND BRING BACK.
UH, SO WE MAY EXTEND BEYOND THAT 10 YEARS IN THAT SITUATION, UM, WITH RESPECT TO RECYCLING AND DISPOSAL AND WHAT WE SEE, UH, WE, WE SAW AN ENORMOUS INCREASE IN GARBAGE AND RECYCLING AND IN ORGANICS, THAT'S FOR A DIFFERENT REASON.
BUT, UH, WE SAW THAT STARTING WITH COVID, UH, IT'S SLOWED DOWN A LITTLE BIT FOR THE FIRST QUARTER, BUT WE'RE NOT SEEING IT GO AWAY.
AND WHAT WE THINK IS HAPPENING WITH RESPECT TO, TO GARBAGE IN PARTICULAR, IS THAT WE HAVE MULTIPLE GENERATIONS LIVING IN THE SAME HOME, AND THEY'RE GENERATING A LOT OF GARBAGE.
WE ALSO THINK THAT, UH, CONSUMER, UM, YOU KNOW, WHAT, WHAT OUR CUSTOMERS ARE BUYING, HOW THEY BUY MATERIAL, WHETHER IT'S THROUGH AMAZON OR, OR WHATEVER, AND IT'S SHIPPED TO THEIR HOME.
IT'S CREATING MORE PACKAGING, MORE MATERIAL FOR US TO, TO COLLECT.
AND SO, UM, I I THINK TO YOUR POINT, 10 YEARS, IF WE WERE TO HAVE A REDUCTION, BECAUSE WE WERE SEEING A REDUCTION A FEW YEARS AGO FROM A, FROM A 10 YEAR PERIOD DOWN ON HOW MUCH WASTE, UH, PER CUSTOMER, BUT THAT REVERSED.
AND, AND I THINK IT'S THOSE TWO REASONS WHY, BUT, UH, WE DO WANNA BOLSTER UP OUR RECYCLING.
WE WOULD LIKE TO SEE THAT INCREASE AND, AND HAVE AN IMPACT ON HOW MANY TONS OF GARBAGE THAT WE COLLECT.
AND I HOPE I ANSWERED YOUR QUESTIONS.
YOU YEAH, YOU DID ANSWER MY QUESTION.
UM, UH, SO I GUESS MY POINT IS I'D LIKE TO SEE FLEXIBILITY IN THERE BECAUSE THOSE TRENDS COULD CHANGE OVER TIME.
I KNOW IT'S OUR GOAL TO GET PEOPLE TO, TO DISPOSE OF LESS, YOU KNOW, HAUL, UH, HOUSEHOLD SOLID WASTE AND RECYCLE MORE.
AND SO IF WE'RE SUCCESSFUL IN THAT, SURE.
I DON'T WANT THIS CONTRACT US TO RUN INTO PROBLEMS WITH, WITH WHAT THIS FUTURE CONTRACT LOOKS LIKE.
AND I'M, I'M ALL FOR BEING ABLE TO HAVE A, A CONTRACT STRUCTURED WHERE WE CAN ADD EXTENSIONS TO IT AS WELL.
COUNCIL MEMBER BRAVO, COUNCIL MEMBER COURAGE.
UM, LET ME JUST, UH, ALSO, WHILE WE WAIT FOR COUNCIL MEMBER COURAGE, UH, REITERATE WHAT COUNCIL MEMBER BRAVO SAID, UM, YOU KNOW, IN, IN TERMS OF MAYBE WE COULD PREDICT WHAT 30 YEARS WOULD LOOK LIKE IN, IN DISPOSAL, UM, IN 1990.
I DON'T KNOW IF WE CAN SAY THAT IN 2023.
SO, UH, WHATEVER LENGTH OF CONTRACT WE DO HAVE, I WOULD, I WOULD HOPE THAT WOULD ALLOW US SOME, UH, SOME ABILITY TO MAKE FURTHER GAINS IN ROADS, INTO RECYCLING AND OTHER ALTERNATIVE WASTE STREAMS. UH, THAT'S WHAT I WOULD BE, UH, THAT'S WHAT I WOULD LIKE TO SEE FROM THE LATEST CONTRACT.
ANY FURTHER DISCUSSION ON THIS? COUNCIL MEMBER CASTILLO.
UM, THANK YOU FOR THE PRESENTATION.
[00:25:01]
TO ADD, UH, TO THE CONVERSATION ABOUT FLEXIBILITY.THE CITY OF SAN ANTONIO HAS PASSED A DECONSTRUCTION ORDINANCE WITH THE GOAL OF REDUCING THE AMOUNT OF WASTE THAT WE'RE PRODUCING AS A CITY.
UM, AND KNOWING THAT WE ARE MOVING FORWARD WITH, UH, ADDITIONAL INITIATIVES TO REDUCE OUR WASTE, UH, I WOULD ALSO LIKE THAT FLEXIBILITY WITHIN THE R F P.
COUNCIL MEMBER CASTILLO, ANY FURTHER DISCUSSION? OKAY.
I THINK THAT'S, UH, THAT'S ABOUT THE LENGTH OF IT.
ANY FINAL COMMENTS, ERIC? NO, SIR.
WELL, BEFORE WE ADJOURN, WE DO HAVE SOME COMMENTS FOR YOU, UH, WHICH IS THAT APPARENTLY ERIC HAD A BIRTHDAY ON TUESDAY AND DON'T TELL ANYBODY.
SO, UH, AT 1 29, AT 1:29 PM UH, WE'LL GO AHEAD AND SING HAPPY BIRTHDAY BEFORE WE ADJOURN.
HAPPY BIRTHDAY, BIRTHDAY TO YOU.
UH, WELL, WE HAVEN'T OFFICIALLY ADJOURNED YET, SO COUNCIL MEMBER KZ, WOULD YOU LIKE TO SING OR, OR ASK QUESTIONS?
UH, I, I DID HAVE A, A QUESTION OR TWO.
UM, WHEN IT COMES TO THE RENEWALS IN THIS OR ANY FURTHER CONTRACT, WHO HAS THE OPTIONS FOR THE RENEWALS? IS IT A CITY'S OPTION OR IS IT THE, UH, COMPANY'S OPTION? WE HAVE DONE IT A COUPLE OF DIFFERENT WAYS IN PAST CONTRACTS.
I BELIEVE IN THIS CONTRACT, IT WOULD BE THROUGH A, A MUTUAL AGREEMENT, UH, BOTH WITH THE CITY AND THE CONTRACTOR.
SO ONE COULD SAY NO AND IT WOULD BE DEAD.
HOW MANY LANDFILL SITES ARE THERE IN BEXAR COUNTY OR RIGHT AROUND BEXAR COUNTY TODAY? I KNOW OF TWO DIRECTLY IN BEXAR COUNTY.
AND SO IF A NEW COMPANY WERE TO STEP UP, MORE THAN LIKELY THEY WOULD HAVE A LANDFILL THAT THEY WOULD BE TARGETING TO USE? CORRECT.
BECAUSE WHAT DOES IT TAKE FOR A COMPANY TO GO OUT AND GET A NEW LANDFILL APPROVED? IT'S A, IT'S A PRETTY LENGTHY PROCESS.
THERE IS ANOTHER OPTION THAT WE HAVE PUT INTO THE, UH, SOLICITATION TO BE BENEFICIAL REUSE.
WE HAD, UH, TWO VENDORS THAT SUBMITTED ON OUR RECYCLE CONTRACT HOWEVER LONG AGO THAT WAS.
AND, UH, THAT WAS NOT SOMETHING WE WANTED TO, TO DO WITH OUR RECYCLING, BUT, UH, WE POINTED THEM TO THIS OPPORTUNITY AND, AND, UH, THOUGHT THAT IF THEY WANNA SUBMIT ON IT, WE WOULD CONSIDER IT.
SO I DON'T KNOW WHAT THE PROCESS IS FOR THAT.
HOW FAR OUTSIDE OF BEXAR COUNTY DO WE GO TO DELIVER LANDFILL, UH, TODAY, UH, THROUGH THE TRANSFER STATION THAT'S OPERATED BY ANOTHER VENDOR.
THEY TAKE THE MATERIAL TO BUTTA, I BELIEVE IT'S IN THE NEIGHBORHOOD OF, OF 50, 60 MILES ONE WAY.
ARE THERE ANY OTHERS CLOSER THAT WE KNOW OF THAT MIGHT BE INTERESTED IN BIDDING ON THIS? UH, I, I'M, I'M JUST GOING OFF MY, MY, MY BRAIN POWER HERE, BUT I BELIEVE THERE'S ONE, UH, AND I'M NOT SURE WHERE THEY ARE ON THEIR PERMIT, BUT IN LOCKHART OR NEAR LOCKHART AND IN LU IT'S JUST FAR AWAY IN LULING.
UM, YOU KNOW, I, I UNDERSTAND WHY WE'RE LOOKING TO SHORTEN THIS, BUT I KIND OF AGREE WITH COUNCILMAN PERRY.
I THINK SOMEBODY WOULD WANT TO HAVE A LITTLE MORE SURETY OR A LONGER TERM, AND I KNOW YOU HAVE FIVE ONE YEAR AGREEMENTS.
ONE YEAR IS NOT EVEN ENOUGH TO, IF YOU SAY NO, TO MOVE OUT AND FOR SOMEBODY ELSE TO MOVE IN, WHY AREN'T WE SAYING A TWO OR OR FIVE YEAR RENEWAL PERIOD? WE, UM, WE CAN CERTAINLY CHANGE THAT.
IT'S, IT IS, UM, UH, WE WERE, WE WERE TRYING TO MAKE IT, UH, UH, FAVORABLE TO THE VENDORS, UH, AND WE THOUGHT THAT THAT WOULD BE MORE FAVORABLE.
SO, UH, I, I, WE'LL CERTAINLY TAKE THAT COMMENT AND MAKE THAT CHANGE.
YEAH, I, I'D SURE FEEL MORE COMFORTABLE SAYING WE'VE GOT A TWO YEAR TRANSITION PERIOD RATHER THAN A ONE YEAR TRANSITION PERIOD.
AND I WOULD HOPE THAT WHOEVER DOES THE WORKFORCE, IF THEY'RE DOING A GOOD JOB, THEY'D LIKE TO KNOW THAT IT'S MORE THAN JUST ONE MORE YEAR, THAT MAYBE IT'S TWO OR FIVE MORE YEARS.
UH, SO THOSE ARE MY THOUGHTS ON, ON THAT.
IT, MR. MCCAREY REMINDED ME THAT THERE IS ANOTHER LANDFILL THAT IS, UH, UH, IN THE NEW BRAUNFELS AREA.
IF THERE'S NOTHING ELSE THEN UH, TIME IS 1:33 PM ON THE
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NINTH DAY OF FEBRUARY, 2023.