HomeMy WebLinkAboutStaff Report 2511-5409CITY OF PALO ALTO
CITY COUNCIL
Monday, December 01, 2025
Council Chambers & Hybrid
5:30 PM
Agenda Item
11.Approval of Amendment No. 2 to Contract C09124501A with GreenWaste of Palo Alto to
Extend the Term for an Additional Four Years Through June 30, 2030, for an Estimated
Average Annual Compensation of $24,840,211, including an Estimated $1,400,589 in
Additional Expenses; Approval of Replacement of Aging Collection Vehicles for an
Estimated $5,900,000 in Additional Expenses; Approval of a Budget Amendment in the
Refuse Fund; and Approval of Amendment No. 1 to the Revocable Non-Exclusive License
For Use of a Portion of the Former Los Altos Treatment Plant Located at 1237 San
Antonio Road by GreenWaste of Palo Alto Through June 30, 2030; CEQA Status - Not a
Project
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: December 1, 2025
Report #:2511-5409
TITLE
Approval of Amendment No. 2 to Contract C09124501A with GreenWaste of Palo Alto to
Extend the Term for an Additional Four Years Through June 30, 2030, for an Estimated Average
Annual Compensation of $24,840,211, including an Estimated $1,400,589 in Additional
Expenses; Approval of Replacement of Aging Collection Vehicles for an Estimated $5,900,000 in
Additional Expenses; Approval of a Budget Amendment in the Refuse Fund; and Approval of
Amendment No. 1 to the Revocable Non-Exclusive License For Use of a Portion of the Former
Los Altos Treatment Plant Located at 1237 San Antonio Road by GreenWaste of Palo Alto
Through June 30, 2030; CEQA Status - Not a Project
RECOMMENDATION
The Finance Committee and staff recommend that City Council:
1. Approve Amendment No. 2 to Contract No. C09124501A with GreenWaste of Palo Alto
to extend the term for an additional four years to end June 30, 2030, for an estimated
average annual compensation of $24,840,211, including an estimated additional cost of
$1,400,589 for additional expenses in vehicle repairs and maintenance, and container
replacements;
2. Approve and authorize the replacement of aging collection vehicles for an estimated
total of $5,900,000;
3. Amend the Fiscal Year 2026 Budget Appropriation for the Refuse Fund (requires a 2/3
majority vote) by:
a. Decreasing the Refuse Fund balance by $2,610,000; and
b. Increasing the Collection, Hauling, Disposal appropriation for Refuse Collection
by $2,610,000; and
4. Approve Amendment No. 1 to the revocable non-exclusive license for GreenWaste of
Palo Alto to continue using a portion of the Former Los Altos Treatment Plant, located at
1237 San Antonio Road, for an additional four years to end June 30, 2030.
EXECUTIVE SUMMARY
Staff recommends that the contract with GreenWaste of Palo Alto be amended to extend its
term by an additional four years through June 2030. In addition, staff requests that the Finance
Committee review and consider the GWPA requests for 1) replacing aging collection vehicles
and 2) providing additional compensation for vehicle repairs and incrementally increasing
maintenance on the remaining fleet vehicles, and container replacements during the extended
term. Extending the contract will ensure continuity of essential waste collection services for the
community and enable a long-term strategy to consolidate the currently separate collection
and processing contracts. This alignment will also position the City to explore its post-2030 zero
waste goals and implement further sustainability enhancements aimed at reducing greenhouse
gas emissions.
On November 4, 2025, the Finance Committee reviewed and unanimously recommended that
Council adopt the staff recommendations1.
BACKGROUND
GreenWaste of Palo Alto (GWPA) is the City’s exclusive contractor for the collection and
processing of recyclable, compostable, deconstruction, and construction and demolition
materials, as well as the collection of landfill waste. The processing of landfill materials is
handled through a separate contract with GreenWaste Recovery, approved by City Council in
May 2021.2
GWPA was awarded the contract as the City’s waste collector in 20093 after a competitive
solicitation process, and the contract now has been extended and amended multiple times. The
previous waste collector, Waste Management, purchased the local company, PASCO, in 1998
which had provided services to the City for the prior 50+ years. Long-term contracts for waste
collection and processing services are very common in the waste industry and are often
extended due to key factors that provide benefits and stability for both the service provider and
the municipality receiving the services.
For the City, the GWPA contract has locked in an efficient, stable, and consistent high-quality
service, innovative processing facilities, predictable pricing, and the ability to expand on
services to achieve the City’s zero waste and sustainability goals. This has helped with long-
term budgeting and protected the City from volatile market prices, and the cost volatility and
risks associated with competitive bidding processes. GWPA benefited and strategizes on how
1 Finance Committee, November 4, 2025; Agenda Item #2 SR# 2508-5141
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=83791
2 City Council, May 24, 2021; Agenda Item #7 SR# 11632
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=2264
3 City Council, August 4, 2008 SR # 329:08
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=71349
best to manage the waste collected and processed through its specialized collection vehicles,
containers, and the materials processing facilities.
Long-term contracts provide service providers the financial security to make large investments
in equipment, and the predictable revenue stream allows them to secure financing and
amortize the cost over many years. GWPA has also benefited in helping the City implement
ground-breaking services and pilot programs that have helped the City achieve its current
diversion rate of 88%.7 The contract was amended and extended in 2019, which extended the
contract through June 30, 20268, added new services (including an enhanced Clean Up Day
collection and deconstruction services), added new staffing to help the City achieve increased
compliance with zero waste requirements, and included vehicle replacements to the GWPA
fleet including electric vehicles. The contract was most recently amended on December 12,
20229 to implement domestic recycling of mixed paper and mixed rigid plastics. Another
development is that as of February 2024 the GWPA drivers are unionized.
The City Council approved a limited-term site license agreement for the Los Altos Treatment
Plant (LATP) in 201610 providing GWPA the use of the site for the storage of containers. In
January 2024, the Revocable Non-Exclusive License for the Use of Real Property (License) was
approved for GWPA to remain at LATP, located at 1237 San Antonio Road, through June 30,
2026.11
ANALYSIS
GWPA’s past amendments and term extensions have mutually benefited both the City and
GWPA. Similarly, this next (and final), term extension leverages the experience and trust for this
contract to continue an additional four years from July 1, 2026 to June 30, 2030, with a vetted
contractor that has allowed competitive rates in comparison to neighboring jurisdictions, and
provided high quality performance and consistent service reliability and responsiveness to the
City and the community. The 2019 contract extension8 anticipated the possibility of the City
taking action on extending the contract term with GWPA and included the ability for the City to
extend the term up to four additional years without altering any of the terms or provisions in
the agreement. Staff considered multiple options and alternatives to extending the term, from
7 Zero Waste Progress Report;
https://www.paloalto.gov/Departments/Public-Works/Zero-Waste/About-Us/Progress-Report#section-2
8 Special Meeting, January 22, 2019; Agenda Item #6 SR# 9752
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=2037
9 City Council, December 12, 2022; Agenda Item #1 SR# 14834
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82083
10 City Council, August 15, 2016; Agenda Item # 6 SR# 7082
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=79687
considering conducting a formal solicitation process to exploring various lengths of time to
extend the contract and ultimately determined its recommendation that the option that most
benefits and provides the best contract flexibility to the City is the last option listed in Table 1,
which is to extend the GWPA contract for four years and accommodate some contract requests
from GWPA that provides the continuity of services to the community while minimizing
financial impacts to both the City and GWPA.
Table 1: Summary of Options Considered for the Contract Amendment
Options Considered Challenges
Extend contract 2 years and
initiate new solicitation
Most costly to the City due to procurement process, transition,
and less advantages to the City
Estimated cumulative additional increased costs of 15 to 20%
No economies of scale of combining solid waste contracts
Less time to align with City goals with innovation and
improvement to the waste industry from artificial intelligence
Extend contract 4 years with
current services (no
compensation changes)
Financially beneficial to the City since it would minimize
expenses
Increased risk of collection service issues with aging vehicles
Increased risk of operational difficulties vehicle breakdowns,
potential unsafe conditions, increased maintenance needs, and
environmental violations
Extend agreement 4 years, use
the 10-year industry standard for
vehicle replacements and create
specific parameters to determine
which vehicles should be
replaced by GWPA
(Recommended)
Process for vehicle replacements is described in the current
agreement
Compromise approach for both City and GWPA
Increased expenses on vehicle replacement, and container
replacements
Ensure the continuity and reliability of essential services, control expenses to the City,
and lessen disruptions to residents and businesses;
Maintain price stability by continuing a predictable compensation amount; further
protects the City from the current market, tariffs, and labor volatility;
Continue to benefit from the local processing facilities with close proximity to Palo Alto
as well as the current structure for materials processing expenses. It maintains and
continues the processing commitments for recyclable, compostables, and construction
and demolition materials at the GreenWaste processing facilities located in San Jose;
Provide staff more time to develop a long-term vision and strategy for solid waste
management services beyond 2030 and enable the consolidation of all the solid waste
collection and processing services into one new future contract. This would combine the
services that are currently provided by GWPA and the GreenWaste Recovery contract
that handles the processing of landfill materials and will end on June 30, 2030.17 In
addition, it will provide staff the opportunity to strategize into the future solicitation
process the benefits from artificial intelligence being developed in the solid waste field.
Enable staff to explore post-2030 zero waste goals and determine how best to enhance
sustainability efforts to further reduce greenhouse gas emissions.
Staff held multiple discussions with GWPA over numerous months, and continues to work with
GWPA with the mutual goal of a contract term extension and continuing existing services while
minimizing increased expenses to the City and managing the financial impacts to GWPA
operations and services. The recommendations reflect a strategy to reduce the frequency of
vehicle replacements and align it with solid waste industry standards of a ten-year replacement
schedule instead of using an eight-year replacement schedule. Initial discussions contemplated
the eight-year replacement lifespan of approximately 50 vehicles, which would have led to
additional expenses to the City above $21 million over the extended term. The current
recommendations significantly reduce these costs for the City in the final extended term of the
contract.
The initial GWPA contract was for an eight-year term starting in 2009 and included both newly
purchased vehicles as well as nine used vehicles obtained from the previous hauler. The
replacement of collection vehicles is allowed in the current agreement with GWPA and has
been approved in the past by the City both administratively through an approval letter from the
Public Works Director as well as through City Council action as was last done through the
contract amendment in 2019.
At the end of the GWPA contract term, the City will have the option to either acquire the
vehicles from GWPA or to instruct them to sell the vehicles and provide the City with the
amount received for the sale. The contract requires that GWPA obtain from the City approval to
use any vehicles that exceed eight years of age. Given that the additional four-year term
impacts the current fleet vehicle lifespan, and with the industry standard being ten years, staff
recommends replacing the vehicles reaching ten years of age during the additional term and
proposes one exception, which is to replace the rear loader electric vehicle sooner than the
ten-year standard life. For the remaining fleet vehicles, both for collection and support, it is
recommended to address potential repairs and maintenance issues by allocating some
additional expenses for vehicle repair and maintenance during the extended term.
The following sections describe the estimated proposed GWPA additional compensation for
Fiscal Year 2026 and during the four-year term extension, which are also summarized in Table
2:
17 GreenWaste LATP License 2024
Replacement of Nine Collection Vehicles – Estimated Total Expense of $5,900,000, with
approximately $2,610,000 in current Fiscal Year 2026, and $3,290,000 in the Extended Term
Table 2: Summary of Options Considered for Vehicle Replacement Expenses
Options
Considered
Advantages & Disadvantages
Use Refuse Fund
rate stabilization
reserves
(Recommended)
Advantages:
GWPA has an open vehicle order and the initial four vehicles could be put into
operation as early as Spring 2026; Refuse Fund reserves are able to sustain the
expense
Estimated total cost impact, in addition to direct vehicle costs, of $600,000
considering foregone investment income from Refuse Fund reserves
Payment based on invoices as vehicles are received by GWPA
Disadvantages:
Large impact to the Refuse Fund with an estimated $5,900,000 expense over the
extended term that reduces the rate stabilization reserves as vehicles are
ordered and expenses are incurred
Amortization or
smoothing the
cost of vehicles
over the term
Advantages:
Spreads the cost and depreciation of the expensive specialized collection
vehicles across the 4.25 years of the proposed term, Fiscal Years 2026 through
2030
Reduces the expense impact on the Refuse Fund rate stabilization reserves
Enables a predictable and consistent operating budget for the Refuse Fund
Disadvantages:
Adds the complexity of requiring GWPA to obtain a loan with interest which
would be a pass-through expense to the City
Estimated total cost impact, in addition to direct vehicle cost, of $1,100,000
considering interest payments on 7% loan and foregone investment income
from Refuse Fund reserves
Staff recommends the first option presented in Table 2, which would compensate GWPA for the
vehicle replacements based on the invoice price as the vehicles are received into the fleet over
the proposed extended term of the contract (some in Fiscal Year 2026 plus some during the
proposed recommended extended 4-year term to end in Fiscal Year 2030). This option reduces
the City’s overall expenses that would be incurred with the amortizing option of spreading the
interest and financing debt over the extended term, with an estimated difference in total cost
impact of approximately $500,000. This approach aligns the replacement timing with the
vehicle 10-year lifecycle, offers a consistent and manageable framework for expenses that is
similar to the recent process used for the vehicle replacements approved in 2019, and uses the
Refuse Fund reserves to minimize the financial strain on the Refuse Fund and ratepayers.
The proposed estimated expenses would be incurred by the City in Fiscal Years 2026, 2027, and
2028.
The following requests for additional compensation to GWPA require City Council approval:
Vehicle Repair and Maintenance for the Aging Fleet – Estimated Total Expense of $1,400,589
with $82,688 in current Fiscal Year 2026 and $1,317,900 in the Extended Term
Table 3: GWPA Additional Compensation Requests Distributed by Fiscal Year
Items Estimated Additional Expenses
FY2026 FY2027 FY2028 FY2029 FY2030 Total
Vehicle repair &
maintenance
$82,688 $213,500 $222,100 $277,300 $373,000 $1,168,589
Bin replacements $58,000 $58,000 $58,000 $58,000 $232,000
Vehicle replacements $2,610,000 $570,000 $2,720,000 $5,900,000
Total $2,692,688 $841,500 $3,000,100 $335,300 $431,000 $7,300,589
GWPA utilizes the site at LATP for charging electric vehicles, storing containers, and serving as a
transitional yard to temporarily hold illegally disposed items collected by staff. On June 12,
2023, the City Council approved a HomeKey Lease Agreement with LifeMoves for the use of the
LATP site.19 The project required GWPA to relocate to a different area of the LATP site and a
new license agreement was approved for the relocation while HomeKey is under
construction.20 Once the HomeKey project is finalized, GWPA will relocate to a new,
approximately 52,246 square foot premise adjacent to the HomeKey Project. New EV chargers
for the GWPA electric vehicles have been installed and will be used by GWPA. Staff proposes
extending the license agreement (Attachment C) on substantially the same terms as the current
agreement, to expire in 2030 concurrently with the agreement.
During the Finance Committee discussion, there were questions about the square footage of
the LATP Area C needed by Greenwaste, and whether there could be space for parking or
storage of oversized vehicles. Greenwaste does need to fully use the Area C location included in
the license agreement. However, approval of the license agreement extension does not
foreclose the possibility of using part of the former LATP site for oversized vehicle program
needs. Although there are challenges around environmental remediation, wetlands mitigation,
and costs due to the half-ownership of LATP by the Refuse Fund, the potential use of Area B,
where Greenwaste has been temporarily operating during the Homekey construction, can be
considered as part of staff and the City Council’s efforts to address oversized vehicles issues and
has been referred to that team’s work.
Zero Waste Services and Future Major Projects Timeline
Extending the GWPA agreement term to end in June 2030 will ensure continuity of essential
waste collection services for the community and enable a long-term strategy to consolidate the
currently separate collection and processing contracts. Table 4 is an estimated timeline and
plan for upcoming major projects for the Refuse Fund.
Table 4: Timeline of Major Projects for the Refuse Fund
Projects Timeline
Refuse Fund Cost of Service Study update to Finance Committee.January/February 2026
Engagement with the community and City Council on considerations for changes
to the future solid waste contract service and to develop a new zero waste vision
post-2030 (the current Zero Waste Plan,21 as established in Staff Report 8988,
sets targets through 2030).
January to September 2027
19 Special Meeting, June 12, 2023; Agenda Item #14 SR #2308-1895
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=2316
21 GreenWaste LATP License 2024
https://paloalto.gov/files/assets/public/v/1/public-works/staff-reports-all/2025/greenwaste-license-final.pdf
Begin solicitation process for new consolidated contract for collection,
processing and disposals services for landfill, recyclable, compostable,
deconstruction, and construction and demolition materials.
New Zero Waste vision post 2030 is approved.
January to June 2028
Finance Committee and City Council review and approve finalized and negotiated
consolidated agreement for solid waste services.
January to June 2029
Current solid waste contracts with GreenWaste Recovery for garbage processing
and disposal ends.
June 30, 2030
Proposed amended contract with GWPA ends.June 30, 2030
New consolidated solid waste contract begins.July 1, 2030
FISCAL/RESOURCE IMPACT
Table 5 provides the estimated proposed additional GWPA compensation for current Fiscal Year
2026 and the extended 4-year term.
Table 5: Proposed GWPA Compensation for the Extended Term
FY 2026
(Current
contract term)
FY 2027 FY 2028 FY 2029 FY 2030
GWPA estimated annual
compensation for current services
(without additional new expenses)
$22,900,000 $23,701,500 $24,531,053 $25,389,639 $26,278,277
Additional vehicle repair and
maintenance and bin
replacements (also included in
Table 3)
$82,688 $271,500 $280,100 $335,300 $431,000
Additional vehicle replacements
(also included in Table 3)$2,610,000 $570,000 $2,720,000
Subtotal of Estimated additional
compensation $2,692,688 $841,500 $3,000,100 $335,300 $431,000
Total $25,592,698 $24,543,000 $27,531,153 $25,724,939 $26,709,277
In Fiscal Year 2026, the additional one-time compensation recommendation of $2,692,688, can
be accommodated using Refuse Fund reserves, but requires a budget amendment for the
additional expense. Appropriations for subsequent contract years will be determined through
the annual budget development process and are subject to Council approval.
The Refuse Fund beginning Fiscal Year 2026 rate stabilization reserve (RSR) balance is $15.5
million and exceeds the recommended guideline range of ten to twenty percent of sales, which
is estimated at $6.8 million. The Fund has not implemented residential rate increases since
Fiscal Year 2018 and commercial rate increases since Fiscal Year 2017. A cost-of-service study is
being conducted, and staff expects to bring the results to the Finance Committee at the
beginning of calendar year 2026.
The current contract, which staff proposes to extend, has resulted in competitive rates for Palo
Alto ratepayers. Table 6 provides a summary of FY 2025 residential rates for Palo Alto and
neighboring cities. Approximately 88% of Palo Alto residential ratepayers are under the 20 or 32
gallon cart rates. The comparison does not capture any FY 2026 rate increases implemented in
other cities, while Palo Alto did not have a FY2026 rate increase. Additionally, Palo Alto funds its
exceptional Household Hazardous Waste program and street sweeping services through its
refuse rates, while many other cities have alternative funding sources for these programs.
Given the current Refuse Fund RSR balance, the recommended contract amendment and
vehicle replacement are not expected to be a near-term driver for rate increases, although the
cost-of-service-study underway and planning for anticipated cost increases under a new 2030
contract will incorporate any appropriate adjustments and/or increases.
Table 6: Fiscal Year 2025 Refuse/Solid Waste Rates
Supersaver
(20-24 gallon)
Small
(32-35 gallon)
Medium
(65-65 gallon)
Large
(95-96 gallon)
Palo Alto $27.81 $50.07 $100.15 $150.22
Hayward $31.20 $45.59 $81.31 $116.99
Los Altos $47.58 $51.26 $102.49 $153.76
Los Gatos $42.72 $53.22 $97.15 $141.09
Menlo Park $50.31 $58.64 $73.93 $92.21
Mountain View $34.90 $46.55 $93.10 $139.65
Redwood City $30.87 $52.86 $80.20 $107.31
San Jose N/A $53.45 $106.90 $160.35
Santa Clara $43.61 $51.51 $75.83 $100.05
Saratoga $44.95 $55.81 $101.81 $147.80
Sunnyvale $40.00 $46.43 $54.56 N/A
Average $39.40 $51.40 $87.95 $130.94
STAKEHOLDER ENGAGEMENT
Stakeholder engagement for the LATP license included meetings with GWPA as the Homekey
project progresses.
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
Vers.: Aug. 5, 2019
Page 1 of 5
AMENDMENT NO. 2 TO CONTRACT NO. C09124501A
BETWEEN THE CITY OF PALO ALTO AND
GREENWASTE OF PALO ALTO
This Amendment No. 2 (this “Amendment”) to Contract No. C09124501A (the “Contract”
as defined below) is entered into as of ________________, by and between the CITY OF PALO
ALTO, a California chartered municipal corporation (“CITY”), and GreenWaste of Palo Alto, a
California limited liability company, located at 610 E. Gish Road, San Jose, CA 95112
(“CONTRACTOR”). CITY and CONTRACTOR are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The City of Palo Alto and GreenWaste of Palo Alto entered into Contract No.
C09124501A, entitled "the Second Amended and Restated Agreement for Solid
Waste, Recyclable Material, and Compostable Materials Collection and Processing
Services" on January 22, 2019.
B. Contract No. C09124501A is set to expire on June 30, 2026. That contract gives
the City the unilateral option to extend the term for up to four additional years,
through June 30, 2030.
C. The Parties now wish to amend the Contract in order to memorialize the extension
of term through June 30, 2030 and provide for additional compensation for vehicle
repair and maintenance and commercial bin replacements for the term of the
Contract as extended.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C09124501A
between CONSULTANT and CITY, dated January 22, 2019, as amended by:
Amendment No. 1, dated December 12, 2022.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2.02 of the Contract is amended to read as follows:
Vers.: Aug. 5, 2019
Page 2 of 5
2.02 Term. The initial Term of the Agreement shall commence on the Effective Date and
shall end at midnight on June 30, 2017 (“Term”). Contractor’s obligation to collect Solid
Waste and Recyclable Materials and provide other services to customers as required by
this Agreement shall commence July 1, 2009. The Term has been extended through June
30, 2021 as provided in Section 2.03. Pursuant to City Council action on January 22, 2019,
the Parties now further agree to extend the Term for an additional five years through
midnight on June 30, 2026. Pursuant to City Council action and as provided in Section 2.03
Option to Extend Term, the parties agree to extend the Term for an additional four years
through midnight on June 30, 2030.
SECTION 3. Section 9.01 of the Contract is hereby amended to read as follows (bracketed
ellipses indicate text that is unchanged but omitted for brevity):
9.01 General.
[…]
In subsequent years, for rate periods 12, FY 2020/21, through 21, FY 2029/30, Base
Compensation will be adjusted annually, based on the application of specified indices
produced by the U.S. Department of Labor, Bureau of Labor Statistics to
specified cost pools and to the profit allowance, which together comprise Base
Compensation.
[…]
SECTION 4. Section 9.04 of the Contract is hereby amended to read as follows:
9.04 Compensation for Subsequent Rate Periods. Contractor’s Base Compensation for all
Rate Periods following Rate Period Ten shall be determined using the index-based
adjustment method presented in Attachment N-2. The method involves use of specified
cost adjustment factors (the percentage change in various consumer price indices) to
calculate changes in the Contractor’s Base Compensation. The percentage change in the
applicable indices is applied to the calculated cost pools and calculated net revenues from
sale of materials collected that comprise the Contractor’s Base Compensation for the
then-current Rate Period to determine the Contractor’s Base Compensation for the
coming Rate Period. For example, in January 2012 when calculating Contractor’s Base
Compensation for Rate Period Four (FY 2012/2013), the percentage change in cost indices
will be applied to the calculated Rate Period Three cost pools to calculate Rate Period
Four costs. The revised N-1 details this for Rate Periods Ten and Eleven.
The Contractor’s Total Annual Compensation for all Rate Periods following Rate Period
Eleven, FY 2019/20, shall equal the sum of the following:
• Base Compensation calculated using the formula presented in Attachment N-2
and one-time costs identified on Attachment N-1 (including, but not limited to,
Vers.: Aug. 5, 2019
Page 3 of 5
compensation for new vehicles received during the Rate Period as approved by
the City based on the invoiced purchase price paid by Contractor, subject to the
profit allowance in Attachment N-2, Section 3.B); and
• Extra Service Compensation for extra services performed during the Rate Period;
and
• Adjustment (reduction) for revenues/fees collected by Contractor from on-call
service provided to Customers.
Additionally, for rate periods 17 (FY 2025/26) through 21 (FY 2029/30), Contractor’s Total
Compensation shall also include the following:
• Rate Period 17:
o $82,688 for vehicle repair and maintenance
• Rate Period 18:
o $213,500 for vehicle repair and maintenance
o $58,000 for additional bin replacements
• Rate Period 19:
o $222,100 for vehicle repair and maintenance
o $58,000 for additional bin replacements
• Rate Period 20:
o $277,300 for vehicle repair and maintenance
o $58,000 for additional bin replacements
• Rate Period 21:
o $373,000 for vehicle repair and maintenance
o $58,000 for additional bin replacements
For vehicles received in Rate Period 17 or later, either depreciation on the new vehicles
shall be included in Contractor’s Compensation as described in Section 9.13, or
compensation for new vehicles received during the Rate Period as approved by the City
shall be included in Contractor’s base compensation for that Rate Period based on the
invoiced purchase price paid by Contractor. City and Contractor shall agree in writing on
the method of compensation.
SECTION 5. The following attachment to the Contract is/are hereby amended or added,
as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are
hereby incorporated in full into this Amendment and into the Contract by this reference:
a. ATTACHMENT “G” entitled “Vehicle Specifications and Quantities”
AMENDED, REPLACES PREVIOUS.
SECTION 6. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
Vers.: Aug. 5, 2019
Page 4 of 5
SECTION 7. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
SECTION 8. Due Execution. The person(s) executing this Amendment on behalf of a Party
hereto warrant(s) that (i) such Party is duly organized and existing; (ii) such person(s) are duly
authorized to execute and deliver this Amendment on behalf of said Party; (iii) by so executing
this Amendment, such Party is formally bound to the provisions of this Amendment; and (iv)
entering into this Amendment does not violate any provision of any other agreement to which
said Party is bound.
SECTION 9. Counterparts. This Amendment may be executed in counterparts, each of
which shall be considered an original.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
Vers.: Aug. 5, 2019
Page 5 of 5
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
GREENWASTE OF PALO ALTO, LLC
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Attachments:
Attachment G, Vehicle Specifications and Quantities, AMDENDED, Replaces Previous
- Amended
The amended GWPA Vehicle Inventory and Replacement Plan included in this Attachment G is current as of October 2025. It reflects GWPA's vehicle inventory and the parties' agreed-upon schedule for replacing the vehicles in use during the remaining term of the agreement. To the extent that this amended replacement schedule requires GWPA to use vehicles that exceed 8 years of age to perform services under this agreement, the adoption of this amended Vehicle Inventory and Replacement Plan constitutes written approval of the Director to do so, as described in this Attachment G.
GWPA Vehicle Master List
YEAR MAKE MODEL VEHICLE TYPE TRUCK ID ROUTE VIN #TYPE FUEL Replacement Year
2009 GMC Sierra C3500 Service Truck PA321 642 1GDJC34688E175280 Non Collection Diesel
2009 GMC Sierra C3500 Scat Truck PA320 SPARE 1GDJC34648E198250 Non Collection Diesel
2009 TCM FG30T3L Forklift PA402 PA402 A2H901329 Non Collection PROPANE
2015 GMC Sierra Pick-up PA104 (K. Navarro)OUTREACH 3GTP1UEC5FG275163 Non Collection Unleaded
2016 Peterbilt COE 320 ASL PA228 R1 3BPZX20X2GF104738 Collection CNG
2016 Peterbilt COE 321 ASL PA220 SPARE 3BPZX20X0GF104737 Collection CNG
2016 Peterbilt COE 322 ASL PA221 SPARE 3BPZX20X9GF104736 Collection CNG
2016 Peterbilt COE 323 ASL PA224 R3 3BPZX20X7GF104735 Collection CNG
2016 Peterbilt COE 324 ASL PA225 M1 3BPZX20X4GF104739 Collection CNG
2016 Peterbilt COE 320 ASL PA222 R3 3BPZX20X0GF104740 Collection CNG 2026
2016 Peterbilt COE 320 ASL PA223 R4 3BPZX20X1GF104732 Collection CNG 2026
2016 Peterbilt COE 320 ASL PA226 R2 3BPZX20X5GF104734 Collection CNG 2026
2016 Peterbilt COE 320 ASL PA227 M4 3BPZX20X3GF104733 Collection CNG 2026
2018 Dodge Ram 1500 Pick-up PA700 (J. Lopez)640 1C6RR7NM7JS351678 Non Collection Unleaded
2018 Peterbilt 348 Roll Off - Rail PA921 SPARE 2NP3L20X7JM479639 Collection CNG
2018 Peterbilt 520 Side Loader PA212 SPARE 3BPDK29X4JF160702 Collection CNG 2028
2018 Peterbilt 520 Front Load PA560 SPARE 3BPDX20X2JF160700 Collection CNG 2028
2018 Peterbilt 520 Front Load PA561 322 3BPDX20X4JF160701 Collection CNG 2028
2018 Peterbilt 348 Roll Off - Rail PA920 534 2NP3L20X5JM479638 Collection CNG 2028
2019 Toyota Prius-Prime Sedan PA101 (K.Shanda)OUTREACH JTDKARFPXK3106598 Non Collection Unleaded
2019 Toyota Prius-Prime Sedan PA102 (A. Cushing)OUTREACH JTDKARFP5K3106105 Non Collection Unleaded
2019 BYD 8RT9M ASL PA230 M3 LA9CCBD8XK1LC0041 Collection Electric
2019 Peterbilt 337 Flat bed PA300 400 2NP2H26X5MM734071 Non Collection CNG
2019 BYD T7MA Electric Flat bed PA302 401 LA95B65EXL1LC0047 Non Collection Electric
2019 Ram 3500 Scat Truck PA312 SPARE 3C7WRSBL8LG242069 Non Collection Diesel
2019 Peterbilt 520 Front Load PA562 123 3BPDX20X4KF102976 Collection CNG
2019 Peterbilt 520 Front Load PA563 120 3BPDX20X6KF102977 Collection CNG
2019 Peterbilt 520 Front Load PA564 320 3BPDX20X6KF104289 Collection CNG
2019 Ram 3500 Service Truck PA641 641 3C7WRSBL4KG597688 Non Collection Diesel
2019 Toyota RAV4 SUV PA701 (E. Cissna)746 JTMDWRFV0KD500503 Non Collection Unleaded
2019 Ram 1500 Pick-up PA705 (A. Legrande)440 1C6RR7NMXKS749274 Non Collection Unleaded
2019 Peterbilt 348 Roll Off-Hook PA904 533 2NP3L20X1JM498915 Collection CNG
2019 8FG35U-187FSV Forklift PA403 PA403 SPR25071471-R3 Non Collection PROPANE
2019 BYD T9M Electric Rear Loader PA305 405 LA95B6D84L1LC0041 Collection Electric 2026
2020 Peterbilt 520 ASL PA201 C1 3BPDL20X5LF108332 Collection CNG
2020 Peterbilt 520 ASL PA202 C2 3BPDL20X3LF108331 Collection CNG
2020 Peterbilt 520 ASL PA203 C3 3BPDL20X5LF108329 Collection CNG
2020 Peterbilt 520 ASL PA204 C4 3BPDL20X1LF108330 Collection CNG
2020 Peterbilt 520 Front Load PA565 323 3BPDX20X5LF108335 Collection CNG
2020 Peterbilt 520 Front Load PA566 321 3BPDX20X1LF108333 Collection CNG
2020 Peterbilt 520 Front Load PA567 122 3BPDX20X7LF108336 Collection CNG
2020 Peterbilt 520 Front Load PA568 121 3BPDX20X9LF108337 Collection CNG
2020 Peterbilt 520 Front Load PA569 SPARE 3BPDX20X3LF108334 Collection CNG
2020 BYD T7M Electric Wash Truck PA603 603 LA95B65E8L1LC0032 Non Collection Electric
2020 Ram 1500 Quad Pick-up PA706 SPARE 1C6SRFBM6LN239682 Non Collection Unleaded
2020 Peterbilt 348 Roll Off-Hook PA905 531 1NP3L20X7LD709916 Collection CNG
2020 Peterbilt 348 Roll Off-Hook PA906 532 1NP3L20X9LD709917 Collection CNG
2020 Peterbilt 348 Roll Off-Hook PA907 SPARE 1NP3L20X5LD709915 Collection CNG
2020 Hyundai Kona Sedan PA707 (C. Soper)n/a KM8K53AGXLU063350 Non Collection Electric
2021 Ford Escape SUV PA100 (E. Torres)OUTREACH 1FMCU9CZ2MUA19191 Non Collection Unleaded
2021 Ford Escape SUV PA103 (M. Wong)OUTREACH 1FMCU0CZ8MUA08109 Non Collection Unleaded
2021 Peterbilt 520 ASL PA205 C5 3BPDL20X2NF112633 Collection CNG
2021 Peterbilt 520 ASL PA211 360 3BPDK29X6MF109769 Collection CNG
2021 Ram Ram 1500 Pick-up PA702 (J. Ramirez)340 1C6RREJTXMN631177 Non Collection Unleaded
2021 GMC Sierra Pick-up PA703 (M. Hill)745 3GTU9CED7MG277184 Non Collection Unleaded
2021 Toyota Tacoma Pick-up PA704 (M. Guillen)140 3TMDZ5BN2MM112895 Non Collection Unleaded
2023 Peterbilt 520EV Fully-Auto PA231 M2 3BPDHL0X8RF115243 Collection Electric
2024 Ford F350 Scat Truck PA311 260 1FDRF3GT3REE58117 Non Collection Unleaded
2025 Peterbilt 520EV Roll Off-Hook PA900 SPARE 3BPDHL0X9SF117900 Collection Electric
2025 Peterbilt 520EV ASL PA232 3BPDHL0X6SF117899 Collection Electric
GWPA Vehicle Inventory and Replacement Plan - October 2025
Month and date, 2025
Eric Cissna
Kelley Johannsen
GreenWaste of Palo Alto
2765 Lafayette Street
Santa Clara, CA 95050
Re: Purchase of Replacement Collection Vehicles
Dear Mr. Cissna and Mr. Johannsen:
Pursuant to Section 7.02 B Purchase of Vehicles and Section 12.16 Right of City to Make
Changes of Contract No. C09124501A (the Contract) between GreenWaste of Palo Alto
(GWPA) and the City of Palo Alto (the City), the City authorizes GWPA to purchase five (5) new
CNG Peterbilt collection vehicles in Fiscal Year 2026 and four (4) new CNG Peterbilt
collection vehicles in Fiscal Year 2028, for a total estimated cost of $5.9 million. The parties
understand that while the rear loader (PA305) is authorized to be replaced as soon as 2026,
the replacement vehicle may not be available until 2027. These vehicles will operate on CNG
fuel and will replace the older collection vehicles listed in Attachment A to this letter.
The City will compensate GWPA for the vehicles based on the invoiced purchase price paid
by GWPA, pursuant to Section 9.04 Compensation for Subsequent Rate Periods.
As required in the Contract, all details for the new vehicles, including specifications, size,
color and location of text, identification numbers and logo will need to be pre-approved by
my staff.
Sincerely,
Brad Eggleston
Director of Public Works
City of Palo Alto
CC: Karin North
Paula Borges Fujimoto
Attachment A: GWPA Vehicles Approved for Replacement
Attachment A - GreenWaste of Palo Alto
Vehicle Replacements for Extension Term
YEAR MAKE Replacement
Year MODEL VEHICLE TYPE TRUCK ID ROUTE VIN #TYPE FUEL
GreenWaste
Replacement
Cost
City of Palo Alto
Replacement
Cost [Including
markup and
applicable tariffs]
2016 Peterbilt 2026 COE 320 ASL PA222 R3 3BPZX20X0GF104740 Collection CNG $581,834.22 $651,654.33
2016 Peterbilt 2026 COE 320 ASL PA223 R4 3BPZX20X1GF104732 Collection CNG $581,834.22 $651,654.33
2016 Peterbilt 2026 COE 320 ASL PA226 R2 3BPZX20X5GF104734 Collection CNG $581,834.22 $651,654.33
2016 Peterbilt 2026 COE 320 ASL PA227 M4 3BPZX20X3GF104733 Collection CNG $581,834.22 $651,654.33
2018 Peterbilt 2028 520 Side Loader PA212 SPARE 3BPDK29X4JF160702 Collection CNG $728,828.19 $816,287.57
2018 Peterbilt 2028 520 Front Load PA560 SPARE 3BPDX20X2JF160700 Collection CNG $609,224.88 $682,331.87
2018 Peterbilt 2028 520 Front Load PA561 322 3BPDX20X4JF160701 Collection CNG $609,224.88 $682,331.87
2018 Peterbilt 2028 348 Roll Off - Rail PA920 534 2NP3L20X5JM479638 Collection CNG $479,794.64 $537,370.00
2019 BYD 2027 T9M Electric Rear Loader PA305 405 LA95B6D84L1LC0041 Collection CNG $440,000.00 $566,720.00
AMENDMENT TO LICENSE AGREEMENT
This Amendment to the Existing License as described below (this “Amendment”) is made and entered into
as of _______________, by and between the City of Palo Alto, a California chartered municipal corporation
(“City”), and GreenWaste of Palo Alto, a California limited liability company (“Licensee”).
City and Licensee are parties to that certain license, dated January 4, 2024, (the “Existing License”).
Pursuant to the Existing License, City has licensed to Licensee a portion of the old Los Altos
Treatment Plant located at 1237 San Antonio Road, Palo Alto (the “Premises”).
The term of the Existing License expires on June 30, 2026.
The parties desire to extend the term of the Existing License, all on the following terms and
conditions.
Now, therefore, in consideration of the mutual covenants and agreements herein contained and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and
Licensee agree as follows:
The original term is hereby extended to and shall expire on June 30, 2030, unless sooner
terminated in accordance with the terms of the Existing License and Licensee shall have no right to
extend the extended term.
Recital F is amended to read:
“Licensee desires to obtain from the City, and the City desires to grant to Licensee, this License
to provide Licensee the right to initially access and use an approximate 1.2-acre portion of the
Property as depicted in more detail in “Exhibit A”, attached hereto and incorporated by
reference (“Initial Premises”) for the purpose of container storage, temporary storage and
sorting of construction and deconstruction waste, dedicated debris box for illegally dumped
items collected by City crew, and temporary charging location for electric vehicles, pursuant to
the terms of this License and as provided in the Second Amended and Restated Agreement for
Solid Waste, Recyclable Materials, and Compostable Materials Collection and Processing
Services between City and Licensee executed in February 2019 (“Second Amended and Restated
Agreement”).”
. Section 5 is amended to read:
“Description of Premises Licensed. The Initial Premises consist of approximately 1.2 acres of
land on the Property, as shown on Exhibit “A” attached hereto. Upon 90 days’ prior written
notice provided by City to Licensee towards the completion of the Project, Licensee shall
surrender the Initial Premises to City and relocate to the New Premises that is to be determined,
but currently anticipated to be the approximate 53,249 square foot area shown on Exhibit “B”,
attached hereto. Prior to the notice to relocate described in this Section, the City may grant
Licensee written approval to access the New Premises for the purpose of accessing EV chargers
and trailer on the New Premises.”
Section 11.4 is amended to read:
“Responsibilities. Unless otherwise agreed to by the Parties in writing, Licensee shall be solely
responsible for all costs, fees, liabilities, and obligations solely resulting from its use of the
Premises, including but not limited to, parking management, security (including installation of
construction fencing to separate Licensee’s portion of the Property from other contractors’
portions), maintenance, clean-up, traffic management, excessive noise (excluding any noise
associated with Licensee's business) management, response to enforcement of violations, labor,
materials, equipment, and liability insurance. Licensee agrees to adhere to the terms of the
“Good Neighbor Agreement LifeMoves Palo Alto” between Licensee and LifeMoves and to take
reasonable affirmative steps to investigate and/or address any noise complaints. Licensee shall
not be responsible for maintaining or repairing any stormwater management devices installed
by City or LifeMoves.”
5. Miscellaneous.
5.1 This Amendment sets forth the entire agreement between the parties with respect to the
matters set forth herein. There have been no additional oral or written representations or
agreements.
5.2 Except as herein modified or amended, the provisions, conditions and terms of the Existing
License shall remain unchanged and in full force and effect. In the case of any inconsistency
between the provisions of the Existing License and this Amendment, the provisions of this
Amendment shall govern and control. The capitalized terms used in this Amendment shall have
the same definitions as set forth in the License to the extent that such capitalized terms are
defined therein and not redefined in this Amendment.
5.3 Submission of this Amendment by City is not an offer to enter into this Amendment but rather
is a solicitation for such an offer by Licensee. City shall not be bound by this Amendment until
City has executed and delivered the same to Licensee.
5.4 Licensee hereby represents to City that Licensee has dealt with no broker in connection with
this Amendment. Licensee agrees to indemnify and hold City harmless from all claims of any
brokers claiming to have represented Licensee in connection with this Amendment.
[Signature Page Follows]
IN WITNESS WHEREOF, City and Licensee have entered into and executed this Amendment as of the
date first written above.
CITY: LICENSEE:
CITY OF PALO ALTO, GreenWaste of Palo Alto,