02 - Laserfiche WebLink

NewPolnt Group' Management Consulton!s Mr. Steven Bocian Page 16 February 23, 2012 Attachment C Cons Franchise Extension Pros and Cons • Potentially reduces the quality of service if let out to bid(particularly by simply selecting Pros a low bidder),though this may be for a limited timeframe • Maintains continuity of collection services • Restricts potential leverage gained from • Takes advantage of hauler's local competition. A formal competitive knowledge of City streets/operations(e.g., procurement has the potential to provide route optimization,customer requirements, benefits to the City,which may include: and service delivery methods) • A one-time reduction in rates • If applicable,retains a high quality hauler • New programs or changes to existing (in terms of minimal complaints,consistent programs on-time delivery,other measurable • Guaranteed periods of rate stabilization parameters) • Retains rates which may be competitive • Changes to the rate structure(if desired) with other jurisdictions with similar service • If granted with limited benefits realized by offerings and objectives the City,potentially fails to recognize that • Rewards a current hauler,who may have a contract extension has tremendous value demonstrated a willingness to implement to a hauler in terms of future profitability. program changes at affordable costs,with Many jurisdictions use this value proposition the ability to gage the impact of those to negotiate some service modifications,or changes possibly some rate relief. Absent a fair negotiation result,a procurement often • Realizes that refuse collection contracts are becomes the only solution best served by long-term business • Limits the time required for a hauler to partnerships between the City and hauler (due to their capital intensive nature of the demonstrate an extension is merited(if business,the high costs of new granted early in the franchise term) vehicles/equipment,and the time required to • Requires rebuilding City/hauler depreciate new purchases) relationship. Potentially,results in a new • Recognizes that a formal procurement can hauler who may not be motivated to work be expensive and administratively time- as closely with the City to meet program consuming for the City,without a guarantee needs(e.g.,in the case where margins that all service parameters will be met already are slim) • Causes displacement of local laborers