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APPENDIXB
PRELIMINARYRESIDENTIALFRANCHISEREVIEWEQUITYOPTIONSREPORT
1/24/18
I. Introductionandbackground
In1992,Portlandfranchisedresidentialgarbageserviceinordertointroducehigh‐qualitycurbside
recyclingandyarddebriscollectionincompliancewithOregon’sOpportunitytoRecycleAct.Inaddition
toimprovingrecyclingcollection,thefranchiseapproachaccommodatedthedozensofsmallbusinesses
thatprovidedresidentialcollectionatthattime.Allcompanieswithresidentialcustomerswereawarded
afranchiseterritorycommensuratewiththeircurrentcustomerbase;69companieswereinitiallyissued
franchises.Thefranchisealsoenabledstandardizedrates,facilitatedmoreefficientcollectionroutes,
andreducedtrucktrafficonneighborhoodstreets.Finally,thefranchisesystemprovidedapredictable
revenuestreamthatallowedfranchiseestoinvestinvehiclesandequipmentaswellasselltheir
franchises.Overthepast25years,mostofthesmallhaulershaveelectedtoselltheirfranchises,often
whenanownerretired.Thesesaleshaveresultedintheconsolidationoffranchisees,andtoday13
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companiesholdfranchisestoprovideresidentialservice.
Theresidentialfranchisesystemhasperformedwellinachievingitsoriginalintent.Thepartnership
betweentheCityofPortlandandtheprivateserviceprovidershasresultedinanexcellentrecycling,
composting,andwastereductionsystem.Portland’srecyclingrateforcurbsidematerialsis67percent,
almostdoubletheaveragerecyclingrateintheUnitedStates.Franchiseeshavemadecontinual
investmentstoprovidemoreefficient,cost‐effective,comprehensivecurbsideserviceinan
environmentally‐friendlymanner.AccordingtotheCityAuditor’s2016CommunitySurvey,morethan
threequartersofPortlandresidentsratethequalityoftheirgarbageandcollectionserviceasgoodor
verygood.
OnAugust3,2017CityCouncildirectedstafftoconductamidtermreviewofPortland’sresidential
wastecollectionfranchiseagreementusingtheguidingprinciplesinAppendixAofthisdocument,
includingtwoprinciplesfocusedonimprovingequityanddiversityinthesystem:
a) Increaseparticipationofwomenandminorityworkers.
b) Reducebarrierstoeconomicopportunitiesforminority‐ownedandwomen‐ownedcompanies.

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Therehasbeenadditionalconsolidationinthefranchisesystemsincethisreportwasdrafted.InJanuary2018,
CitySanitaryServiceacquiredDeinesM.SanitaryService,bringingthetotalnumberoffranchisesto12.Thebody
ofthereporthasnotbeenupdatedtoshowthischangeinordertoreflectthesharedunderstandingofthe
franchisesystemstakeholdershadduringtheirDecember2017reviewofthisdocument.
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WhileCityCouncilhasnotadoptedgoalsrelatedtothesetwoguidingprinciples,BPShasinterpreted
theseasaspirationaldirectivestoexplorewaystoincreasediversityinthefranchiseworkforce,aswell
asownershipofparticipatingcompanies,tobetteralignwiththecompositionofPortland’soverall
population.
Thisdocumentpresentsavarietyofoptionstoaddressthetwoguidingprinciplesmentionedabove.It
includesfindingsfromstakeholderinterviews,resultsfromademographicsurveyofthefranchisee
workforce,andasetofpotentialmeasuresforimprovingequityanddiversityinPortland’sresidential
garbage,recycling,andcompostingcollectionsystemthatareinformedbyresearchintobestpractices
inPortlandandothercities.
AdraftversionofthisreportwasdistributedtostakeholdersonNovember30,2017andwasdiscussed
indetailintwosubsequentgroupstakeholdermeetingsonDecember4andonDecember14.
Feedback,information,concerns,andideasfromstakeholdersonthepotentialmeasuresarecaptured
andpresentedinthe“Considerations”sectionsofthereport.
Pleasenotethattheoptionsinthisdocumentareintendedtorepresenttherangeofoptionsheardin
stakeholderinterviewsandarecurrentlyunderreviewbyCitystaff.Theyareintendedtospark
discussionandmayultimatelyprovetohavechallengesthatprecludeimplementation.
Thisdocumentfirstsummarizestheprojectactivitytodate.Itthenbreaksthediscussionofequity
challengesandopportunitiesintotwosections–onefocusedonworkforceparticipation,andtheother
focusedoneconomicopportunityforminority‐andwomen‐ownedbusinesses.
Projectactivitytodate
Stakeholderinterviews
BPShiredaconsultingteamtoconductin‐depthconversationswithstakeholders.Theconversations
orientedstakeholderstotheprocessandsolicitedstakeholderperspectivesonchallengesand
opportunitiesforimprovingequityinthefranchisesystem.Alistofstakeholdersandinterview
questionsareattachedasAppendixB.
Workforcesurvey
BPSworkedwithWorkSystems,Inc.todevelopandadministeranemployeesurveytogatherbaseline
demographicdataofthefranchiseeworkforce.Preliminaryanalysisofthatsurveydataispresented
below.
Thesnapshotformedfromthesurveyresultsprovidesthebasisforinitialrecommendationsfor
improvingworkforcediversity.Itisimportanttonotethatthissnapshotisnotcomprehensive.The
surveywasdevelopedanddeployedonashorttimelineandthedataisself‐reported.Goingforwardit
willbenecessarytoestablishregular,rigorousmethodsforworkforcedata.
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Additionalresearch
Theteamresearchedandanalyzedbestpracticesforincreasingworkforcediversityandforreducing
barrierstoeconomicopportunityforminority‐andwomen‐ownedcompaniesthatarecurrently
employedbytheCityofPortland,MultnomahCounty,andMetro,aswellasexaminingrelevant
examplesfromotherjurisdictions.
II. Increasingparticipationofminorityandwomenworkers
Currentconditions
Preliminaryfranchiseworkforcedemographicsurveydata
Allfranchiseesvoluntarilyprovidedinformationon322employeesthatservePortland’sresidential
customers.Notallinformationrequestedwasprovidedforallemployees.AppendixCcontainsafull
summaryofthesurveyresults,alongwithimportantnotesandcaveatsaboutthedatathatarenot
includedinthehighlightsbelow.
1.5%
1.6%
2.2%
2.5%
4.7%
9.3%
74.5%
2.2%
0.6%
6.6%
0.6%
5.1%
7.6%
76.7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Other/Multi‐racial
PacificIslander/HawaiiNative
Asian
AmericanIndian/AlaskaNative
Black/AfricanAmerican
Hispanic/Latino
White/Caucasian
Franchiseworkforcebyrace/ethnicitycomparedto
Portlandworkforce
OverallPortlandWorkforce FranchiseEmployees
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TheracialdemographicsofthefranchiseemployeesmatchPortland’soverallworkforcefairlyclosely.
Thepercentofrespondentsidentifyingasarace/ethnicityotherthanWhite/Caucasianis21.8percent,
comparedto22.7percentinthecityofPortland’sworkforce.
Themeanwageis$25.67,whichisalittleunderthemeanhourlywageforallPortlandoccupationsof
$25.94.Fornon‐managementpositions,themeanwageis$23.77.
Managerscomprise9percentofthefranchiseworkforceandmakemorethandoublethewage.People
ofcolorandwomenareunderrepresentedinmanagementpositions.
Under13percentofthetotalfranchiseworkforcearewomen.Ofthe40women,65percentarein
administrativepositionsand18percentaremanagers.
Interviewresults
Thefirstroundoffranchiseeinterviewsrevealedarangeofdiversitypractices.Atleastonelargehauler
hasaformalcodeofconductthatfocusesoninclusion.ArepresentativeofthePortlandHaulers
Associationreportsthatitisstartingaprogramtoevaluateandsupportdiversityeffortsamongits
members.SmallerhaulersstatedthatwhiletheydonothavetheHRinfrastructuretohavestandalone
workforcediversityprograms,theywelcomeworkersofallbackgroundsandhaveexperienceemploying
womenandpeopleofcolor.
Franchiseesuniversallyreportedchallengesrecruitingqualifiedcandidatesofanybackgroundand
retainingthemoncehired.Onehaulerreportedcreatinganewbudgetaccounttoaccuratelytrackhis
increasedspendingonrecruitment.Haulersalsoreportedsupportingnewhiresbypayingfor
CommercialDriver’sLicense(CDL)certificationandinsomecasespermittingnewhirestousecompany
truckswhentheytooktheirCDLexam.
WhilelargehaulersreportedhavingdedicatedHRdivisionsthathandlerecruitment,smallhaulersrely
ononlineadvertisingandwordofmouth.
Somecompaniesreportedhiringfromjobtrainingorplacementprograms,withmixedsuccess.No
companiesreportedhavingongoinginstitutionalrelationshipswithworkforcedevelopmentorjob
placementorganizations.
Barrierstoincreasingtheparticipationofwomenandminorityworkers
Fullyunderstandingbarrierstowomenandminorityworkersparticipationandadvancementwould
requireinvestigatingtheissuefromtheperspectiveofcurrent,prospective,andideally,formerwomen
andminorityworkersthemselvesinordertogaininsightintohiringandonboardingpractices,retention
andpromotionstrategies,andcompanyculture.Thisprojecthasinsteadfocusedonestablishinga
baselinefromwhichtomeasurefutureprogress.
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Untilnow,therehasnotbeenafocusonworkforcedemographicsintheresidentialfranchisesystem.
Noworkforcedemographicinformationhasbeencollectedandtherearenoestablishedgoalsor
benchmarksfortheparticipationratesofwomenandminorityworkersintheresidentialfranchise
system.FranchiseeshavereceivednodirectionfromtheCitytoencouragemoretargetedefforts.
Potentialmeasurestoincreasetheparticipationofwomenandminorityworkers
Strategy1‐Establishanagreeduponbaselineandgoalsforwomenandminorityparticipationinthe
workforce.Setupregulardatacollectionprocessestoevaluateprogresstowardgoals.
Thiscanincludegoalsforminorityandwomeninmanagementpositionsaswellasintheoverall
workforce.Furtherconversationswithfranchiseeswillshedlightoncareerpathwayswithinthe
industryandhowadvancementoccurs.Thisunderstandingwillalsobeenrichedthroughconversations
withcurrent,prospective,andideally,formeremployeesinordertodirectlyunderstandworkforce
participationandpromotionbarriers.
Considerations:
Datacollectionshouldbestandardizedinthefuture(Thereweredifferencesinhowcompanies
reportedtheirdatainthispreliminarysurvey).Mandatoryreportingrequirementsandsome
typeofspot‐checkorauditingfeaturewouldincreasethequalityofthedata.Creatinggood
formsandefficientandcleardatacollectionprocesseswillmakeiteasieronreporting
businessesinfutureyears.
Strategy2‐Partnerwithworkforcedevelopmentorganizationstoimplementbestpracticesfor
increasingworkforcediversity.
TheCitycouldsupportorincentsomeorallofthefollowing:
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1. Conductoutreachtotargetedpopulationsthroughpartnershipswithworkforceagencies,like
WorkSystemsandcommunityorganizations,whichhaveaccesstothosepopulationsandcan
providethetechnicalsupportneededtohelpnewhiresqualifyforthejob.
2. Improvehiringperformancebyparticipatingintargetedandfirstsourcehiringmeasures.
Targetedhiringprogramsprioritizejobaccessforcertainpopulations,allowingafocuson
income,geography,orotherspecificfactors.Firstsourcehiringprogramspartnerwith
workforceagenciesorcommunityjobcenterstodrawfirstfromalaborpooloftargeted
populationsthattheagencyorjobcenterhasdeveloped,beforehiringfromthepopulationat
large.
3. Identifytrainingneedsandpartnerwithworkforceagencies,communityorganizationsandlabor
organizationstoaccessorcreatetrainingprograms.ProgramsinothercitieslikeRecycleForce,
HomeboyRecycling,andCivicCorespecializeinworkingwithdisadvantagedworkersand

2
PracticessimilartothosedescribedhavebeenimplementedintheCityofPortlandthroughitsModelCommunity
BenefitsAgreement,CleanEnergyWorks,andMultnomahCountythroughitsSupplierDiversityProgram.Strong
examplesofsimilarworkforcediversityprovisionscanbefoundincommunitybenefitsagreementsnegotiated
betweenlocalgovernmentsandprivateenterpriseinOakland,LosAngeles,andNewYork.
6
providingjobtrainingandemploymentskills.Theseprograms,aswellassimilarprogramsinthe
Portlandregion,canbeusedasmodelsfortheresidentialwastecollectionsector.
4. Raisepayandbenefitsstandardstoimproverecruitmentandretention.Higherwageand
benefitstandardsensurethatjobsaresustainablefordisadvantagedworkersandthatthe
industryiscompetitiveversusotherjoboptions.
5. Offertrainingstoaddressinternalcultureissuesthatcanmakerecruitmentandretentionof
minoritiesandwomenmoredifficultandlesseffective.
6. EnsurefrequentreportingtotheCityofdiversityinworkforcehiringperformance,setup
proceduresforproblemsolvingtogetherwithgovernmentandcommunitypartners,and
incentivizeperformanceandcreatemeaningfulconsequencesfornon‐compliance.
Considerations:
Practicesforincreasingworkforcediversityintheresidentialfranchisesystemshouldalsofocus
ontheopportunitiesandobstaclesforpeopleofcolortoserveinmanagementpositions,which
arewell‐compensatedpositionsinwhichpeopleofcolorarecurrentlyunderrepresented
comparedtothebroaderworkforce.Anyefforttohelpdiversifymanagementpositionsshould
beinformedbythewaythatfranchisesapproachsuccessionplanningandpromotionpathways
withintheircompanies.
III. Reducingbarrierstoeconomicopportunityforminority‐ownedand
women‐ownedcompanies
CurrentConditions
Franchiseesandotherstakeholdersreportthatfranchisesarevaluableassets.Anecdotalinformation
indicatesthatpurchasersarewillingtopaymoreforafranchisethantheywouldforadifferenttypeof
businesswithsimilarearningsbecauseitisaregulatedutilitywithastablecustomerbase,predictable
revenue,andregulatedratesthatincludeatargetoperatingmargin.
Informalaccountsandsomereportedinformationonfranchiseownerdemographics
3
suggestthatall35
ownersofthetenprivatelyheldfranchisesarewhite.Tenownersarewomen,nineofwhichareco‐
ownersoffivefranchises.Asixthfranchiseis100percentwoman‐owned.Threeofthe13franchisees
arepublicly‐tradedcompanies.

3
Therehavebeenchangestofranchiseownershipstructuresincethisreportwasoriginallydrafted.Hereisan
updatedcharacterizationoffranchiseeownership:Threeofthe12franchisees,representing50percentofthe
residentialcustomerbase,arepublicly‐tradedcompaniesforwhichownershipdemographicscannotbe
determined.Therearenownineprivatelyheldfranchiseswith33totalowners.Allarewhite.Tenwomenhold
ownershipinsixfranchises,representing11percentofthetotalresidentialcustomerbase(22percentofthe
customerbaseservedbyprivately‐heldcompanies).Twocompaniesarenowmajoritywoman‐owned(oneof
whichis100percentwoman‐owned);theyrepresenteightpercentofthetotalcustomerbase.
7
Onecommonmethodthatpublicagenciesusetoincreaseminority‐ownedandwomen‐ownedbusiness
participationinprocurementandserviceprovisionistofocusonsubcontractingwiththosecompanies.
Whilesubcontractingisallowedbythefranchiseagreement(andatonepointsmallercompanieswere
requiredtosubcontractforcollectionofrecycling),franchiseesreportedthatcurrentlysubcontracting
residentialservicesisrareandtheydonotseesubcontractingasanefficientoreconomicalmeansof
deliveringservice.However,initialstakeholderinterviewsdidnotincludeafullexplorationof
subcontractingopportunitiesinthefranchisesystem.
Franchisesystemhistoryandcontext
Onecomponentofanequityanalysisisunderstandingthehistoricalcontextforcurrentlyinequitable
situations.Asnotedintheintroduction,whenthefranchisesystemwascreatedin1992,franchiseswere
allocatedto69haulingcompanies.Companiesreceivedafranchiseiftheywerecurrentlycollecting
residentialwasteinthecityofPortland,andthesizeofthefranchisewascommensuratetothenumber
ofcustomeraccountsthattheyhadatthattime.Inyearsprecedingtheestablishmentofthefranchise
system,Portlandhaulershadbuiltbusinesses,purchasedtrucks,investedinfacilitiesandequipment,
andsecuredcustomeraccountsindependentofCitysupportorintervention.Theconversiontothe
franchisesystemcreatedlonger‐termbusinessstabilityforthosehaulerswhohadpre‐existing
businesses,whileallowingtheCitytoexercisegreatercontroloverthesystem’soutcomes,particularly
withregardtocustomerserviceandcurbsiderecyclinggoals.
Therewereasmallnumberofminority‐ownedcompaniesinthelate1980sthateithersoldorreceiveda
franchisewhenthenewsystemwassetup.
4
However,itisnotknownwhatbusinessconditionsexisted
forpeopleofcolorownerspriorto1992,andtowhatextentnowwell‐documentedformsofstructural
racismlikediscriminatoryaccesstocapitalanddiscriminationbycustomersimpactedthosehaulers’
abilitytogrowtheirbusiness,orpreventedotherpeopleofcolorfromenteringtheindustry.
Since1992,somecompanieshavepurchasedothers’businessesandfranchiserights,leadingtoa
consolidationdowntotoday’sthirteenhaulers.Atleastoneminority‐ownedfirmwasawardeda
franchiseandsoldittoanothercompanybeforeservicebeganunderthenewfranchisesystem.
5
AsofSeptember2017,threefranchiseswereheldbylargenationalcompaniesandtenwereheldby
smallandmedium‐sizedlocal,family‐ownedcompanies.


4
InterviewwithBruceWalker,SolidWaste&RecyclingProgramManageratCityofPortlandBureauofPlanning
andSustainability.
5
Ibid.
8
Franchisees(September2017) Customers PercentShare
RepublicServices 1,136
1%
Deines,M.SanitaryService 1,451
1%
SunsetGarbageCollection 1,505
1%
LehlDisposal 1,807
1%
WackerSanitaryService 2,288
2%
Elmer'sSanitaryService 2,318
2%
WalkerGarbageService 2,833
2%
GruetterSanitaryService 3,571
2%
CitySanitaryService 6,549
4%
HeibergGarbageService 16,690
11%
WasteConnections 19,366
13%
PortlandDisposal&Recycling 35,167
23%
WasteManagement 54,987
37%
Total 149,668
100%
Note:AsdescribedinFootnote1,therehasbeenadditionalconsolidationinthefranchisesystemsince
theoriginalwritingofthisreport.InJanuary2018,CitySanitaryServiceacquiredDeinesM.Sanitary
Service,bringingCitySanitary’stotalcustomercountto8,000.
Barrierstoeconomicopportunityforwomenandminorityownedbusinesses
Currentlytheprimarypathwaytoeconomicopportunityintheresidentialfranchisesystemforwomen‐
andminority‐ownedbusinessesisviathepurchaseofafranchise.However,minority‐andwoman‐
ownedbusinessesfacesignificantbarrierstopurchasingafranchise.Thosebarriersinclude:lackof
accesstomarketinformation,lackofcapital,lackofprovenexperience,aswellasthesimplefactofa
shrinkingnumberoffranchisesupforsale.
ItisimportanttonotethatmanyofthebarrierstoeconomicopportunityinthePortlandresidential
franchisesystemalsoapplytoanysmallbusinessesseekingentrytothesystem.Thesebarriersare
compounded,however,forwomen‐andminority‐ownedbusinessesthatfaceadditionalstructuraland
historicdiscriminationanddisadvantages.
Marketinformation
Accordingtostakeholderinterviews,businesstransactionsoffranchisesaretheresultofnetworking
and“knockingondoors”byinterestedpurchasers.Manyfranchiseesreportthattheywereableto
purchaseotherfranchisesovertheyearsbecauseoflong‐termrelationshipswiththeothercompanies,
9
includingknowledgeabouttheretirementplansofotherowners.Somepurchasersoffranchisesreport
initiatingconversationsaboutpurchasingyearsbeforeownerssold.
BecausethepurchaseandsaleoffranchisesgrantedbytheCityofPortlandisconductedentirelyinthe
privatesector,itispossiblethatminority‐orwomen‐ownedfirmsthatarelookingtoenterthesystem
donothaveaccesstopertinentmarketinformation.Itisalsopossiblethattheminority‐andwomen‐
ownedcompanieswhodonothavehistoricrelationshipswithsellersencountersocio‐culturalbarriers
toformingrelationshipsnecessaryforbusinesstransactionsofwhatinmostcasesarefamilybusinesses.
Capitalaccess
Minorityandwomen‐ownedcompaniesareatadisadvantageincapitalmarkets.
6
Franchisesarecapital
intensivetopurchaseandtooperate,andthesalepriceofafranchisecanbeseveraltimesannual
earnings.Theoperationoffranchisesrequiresupfrontinvestmentinequipment,includingtrucksand
containers.TheCityrequiresthatvehiclesareupgradedregularlytostayup‐to‐datewithpollution
controltechnologies.Whilerecognizingtheairqualitybenefits,currentfranchiseesareveryclearabout
thecapitalburdenthattheCity’smandatorytruckupgradesplaceontheirbusinesses.
Experience
OneofthefactorsBPSstaffconsiderswhenevaluatingaproposedfranchisesaleisevidencethatthe
purchasingcompanycanprovidequalityservicetocustomers.Typically,purchaserssubmittheir
experienceprovidingresidentialserviceinPortlandorelsewhere.Staffcouldevaluateotherevidenceas
well,butthusfarallpotentialpurchasershavebeenabletoshowexperienceprovidingresidential
collectionservice.
Fewopportunitiesexistforminority‐owned,woman‐owned,and/orsmallbusinessestoenterthe
franchisesystem
Businesseswhomaybeabletosurmountthechallengesdescribedabovefaceanadditionalandeven
moresubstantialbarrier.Theresidentialfranchisesystemisineffectaclosedsystem,wheretheonly
pathwayforanewbusinesstoenterisviathepurchaseofafranchisefromanexistingfranchiseholder.
Anysmallbusinessseekingtoenterthemarketviafranchisepurchasefacesnumerouschallenges:
1. Duetoconsolidation,thereareonlythirteenremainingfranchises.Threeofthoseareownedby
largenationalwastecompaniesthatareunlikelytosellunlessleavingthePortlandmarket
altogether.Twooftheremainingtenaremid‐sizedhaulerswithmultipleowners(oftenfamily
members)whohavebeenbuyingsmallerfranchisesanddonotappearinterestedinselling.
Concernshavebeenraisedthattheremainingfranchisesmaybetoosmalltobeprofitablefora
newentrant,forthereasonsdescribedin#4below.
2. Aprospectivebuyerhasnocontroloverwhether,when,towhom,andunderwhattermsthose
franchisesgoupforsale.

6
SeeU.S.SmallBusinessAdministrationIssueBriefNumber3(2015)
10
3. Smallbusinessesseekingtopurchaseafranchisethatisofferedforsalefacestiffcompetition
fromestablishedcompanies–onbothsalepriceoffranchisesandontheabilitytoturna
system‐widetargetoperatingmarginintoprofitablereturnsoninvestment.
4. Somestakeholdershavevoicedconcernthatthesmallerexistingfranchisesthatcouldbecome
availabletonewentrantsmaynotbeconducivetothesuccessofnewentrantsinthesystem.
Somestakeholdersbelieveitwouldbedifficultforanewentranttothesystemtobeableto
makeenoughmoneyfromasmallfranchisetocoverthecostsoftheequipmentpurchasesand
administrativecosts(includingcustomerserviceanddispatching)thatwouldbenecessaryto
provideservicestothefranchisearea.Ontheotherhand,asmallerfranchisewouldrequireless
capitalexpenditureforanewentranttothesystem.Citystaffneedstodoadditionalresearchto
understandhowfranchisesizecouldaffectthepotentialviabilityofnewentrantstothesystem.
Potentialmeasurestoreducebarrierstoeconomicopportunityforwomen‐andminority‐
ownedbusinesses.
Strategy3–Solveformarketinformation,capitalaccess,andlackofprovenexperience
Despitethechallengestomarketentrydescribedabove,thereareanumberofactionsthattheCity
couldtakethatwouldimprovetheabilityofminority‐ownedandwomen‐ownedbusinessestopurchase
afranchiseifandwhenonebecameavailable.
O
PTION3‐A:REQUIRENOTICEOFIMPENDINGFRANCHISESALES
BPScouldmaintainacontactlistofminority‐andwomen‐ownedfirmswhoareinterestedinpurchasing
afranchise.Uponreceivingnoticeofanimpendingsale,BPScouldnotifycompaniesonthelistand
providethemtheopportunitytocontacttheownerstocompetewithothersellersfortherighttobuy
thefranchise.
Considerations:
Itisimportanttothefranchiseesthatthisnoticenotbeapublicnotice.Ownersneedtobeable
tomanagethewaythattheiremployeeslearnaboutpotentialsaleofthecompany.
ThiswouldrequireBPStoregularlypublicizetheexistenceofthenotificationlistandsystemto
minority‐andwomen‐ownedcompanies.BPSwouldalsoneedtokeepthelistupdatedwith
currentcontactinformation.
Noticedoesnotaddressotherbarrierstoopportunityandseemsunlikelytosubstantiallyaffect
theoverallownershipmakeupofcompaniesprovidingresidentialwastecollectionservicesfor
thecity.
O
PTION3‐B:IMPROVECAPITALACCESSTHROUGHPARTNERSHIPSWITHCAPITALPROVIDERS
TheCitycouldformpartnershipswithmission‐basedcapitalproviderstoassistminority‐andwomen‐
ownedcompaniesinfindingfinancing.Thisapproachiscommoninothersectors.
11
O
PTION3‐C:PROVIDETECHNICALASSISTANCETOBUILDCAPACITY
TheCitycouldprovidetechnicalassistancetominority‐andwomen‐ownedcompaniestobuildtheir
capacityandprovetheircapabilitytoprovidePortlandresidentialcollectionservice.Therearea
numberofexamplesofthisfromothersectors,includingtheCity’sPrimeContractorDevelopment
ProgramandthefederalSmallBusinessAdministration’s8(a)BusinessDevelopmentProgramfor
disadvantagedbusinesses.TheSBAandthePortofPortlandbothhaveMentor‐ProtégéProgramsthat
helpstartingbusinessespartnerwithandlearntheropesfromcompanieswithgreaterexperience.
O
PTION3‐D:LENGTHENTHETERMOFTHEFRANCHISEAGREEMENT
LengtheningthetermoftheFranchiseAgreementcouldhelpimproveaccesstocapital.Thecurrent
franchiseagreementhasaten‐yearterm.Inpreviousfranchisecycles,theCityandhaulershaveelected
torenewthefranchiseagreementforanotherten‐yeartermafterfiveyears.Franchiseesreportthat
thisapproachmakesitdifficultforthemtofinanceequipmentupgrades.Thefranchiseagreement
providesaseven‐yeardepreciationscheduleforgarbageandcomposttrucksandafive‐yearschedule
forrecyclingtrucks.Nearthemidtermreview,itcanbedifficulttogetfinancingfornewtrucksorother
equipmentupgradessincefranchiseerevenueisonlysecuredforfiveyears.Longerfranchiseterms
extendtheguaranteedrevenuefromthecustomerbaseandcouldimproveaccesstocapitalbyshowing
lendersalonger‐term,predictablesourceofrevenuewithwhichtopayoffloans.
Therearetwooptionsforlengtheningthetermofthefranchiseagreement:
1. Thetermofthefranchiseagreementcouldbeextendedfrom10yearsto15yearswithreviews
takingplaceeverysevenyears.Thiswouldensurethetermoftheagreementneverdropped
belowsevenyears.
2. Anabbreviatedannualrenewalprocesscouldbeaddedtoensurethetermoftheagreement
neverdroppedbelownineyears.
Considerations:
CityofPortland’schartersetsamaximumfranchisetermlengthandprohibits“evergreen”
franchiseagreements.Thus,option#2wouldrequireactionbyCitystaffeachyeartorenewthe
franchiseinadditiontoamorein‐depthrevieweveryfiveyears.
O
PTION3‐E:ENCOURAGESUBCONTRACTINGASAPATHWAYTOWARDBUILDINGRELEVANTEXPERIENCE
TheCitycouldsetaspirationalgoalsforminority‐andwomen‐ownedbusinesssubcontracting,requiring
thatfranchiseesdevelopaplanforsubcontractingtowomen‐andminority‐ownedfirms.Thatplan
wouldthenbecomearequiredcomponentofthefranchiseagreement.Thiswastheapproachtakenin
theZeroWasteLACommercialFranchise.NotethatLosAngelesusedabroaddefinitionof
subcontractingthatincludedbusinesssupportservicessuchasequipmentrepairandaccounting
servicestoprovidemoreopportunitiesforminority‐andwomen‐ownedfirms.
12
TheCitycouldalsosuggestorrequireunbundlingand/orrepackagingservicestoidentifyandincrease
subcontractingopportunities.
TheCitycouldrequirethatfranchiseesconductvigorousoutreach,includingmaintainingalistof
minority‐andwomen‐ownedbusinessesthataresoliciteddirectlyassubcontractedworkgoesoutto
bid,viapre‐solicitationmeetings,andfrequentparticipationatcommunityevents.TheCityofPortland’s
ModelCBA,andtheCityofSeattle’scontractswithWasteManagementandCleanscapesinclude
outreachrequirements.Metro’s2016EquityinContractingreportdescribestheiroutreachefforts.
Considerations
Somefranchiseescurrentlysubcontractportionsoftheircollectionresponsibilitiestoother
franchisees.Futureeffortstoencouragesubtractingshouldbeinformedbyandbuildonthe
businessmodelsandpracticesthatsubcontractingfranchiseesusenow.
Somefranchiseeshaveexpressedconcernthatsubcontractingcomponentsofresidential
collectioncoulddecreaseefficiency.Thisislessofaconcernwithabroaderdefinitionof
subcontractingthatincludesbusinesssupportservices.
Strategy4–Solveforlimitedopportunitiestopurchaseafranchise.
O
PTION4‐A:ESTABLISHAPROCESSFORDIVIDINGFRANCHISETERRITORIES
Currentlythereisnoclearpathwayinthefranchiseagreementfordividinggrantedfranchiseterritories.
TheCityhasreceivedrequeststodoso.Establishingaprocesswouldprovidemoreflexibilityto
franchiseesandpotentiallycreatemoreopportunitiestopurchasefranchisesections.
Considerations
Thisapproachmerelycreatesthepotentialformoreopportunitiestopurchaseafranchise.
Thisapproachisgenerallysupportedbycurrentfranchiseesbecauseitprovidesthemwith
additionalflexibility.
Theremightbeincentivesforfranchiseestosubdividetheirterritoriesinordertosellareasor
routesthataredifficultorcostlytoserve,whichwouldnotmakeidealterritoriesfornew
entrants/minority‐andwoman‐ownedbusinesses.
13
NEWENTRANTZONE(S)–OPTIONS4‐BTHROUGH4‐D
Underthefollowingthreeoptions,theCitywouldcreateanewfranchisedesignedtoencouragethe
growthofsmallbusinessesgenerally,andminority‐ownedandwomen‐ownedbusinessesspecifically.
ThiscouldbesimilartotheapproachthattheCityofLosAngelestookwhenitrecentlyfranchised
commercialandmultifamilycollection(describedbelow).Portlandcouldandshoulddesignanew
entrantzoneaccordingtolocalcontextandneeds.
CityofLosAngeles“SmallZones”
TheCityofLosAngelesrecentlyfranchisedcommercialandmultifamilywastecollection.
Beforethefranchise,over100companiesprovidedservicetocommercialandmultifamilyin
anopencompetitivemarket.Policymakerswantedtoensurethatsmallerhaulerswouldbe
abletocompetewithlargenationalandregionalwastecompaniestocontinuetoprovide
servicewithinthefranchise.TheCitycreatedelevenfranchiseareas,threeofwhichwere
“SmallZones”thatcontained2‐3%ofthetotalaccounts.Anybidderthatwasawardeda
SmallZonecouldnotalsobeawardedalargezone.Asaresult,thelargerwastecompanies
bidonlargerzones,leavingtheSmallZonestobebidonbysmallerhaulers.Haulerswhowon
thesmallzonesarebuildingthenecessaryexperienceandtrackrecordtobeableto
competitivelybidonthelargerzoneswhenthefranchisesareputbackouttobid.
7

PortlandcouldcreateaNewEntrantZoneinmultipleways;Options4‐Bthrough4‐Ddescribeafew.
O
PTION4‐B:CREATEARIGHTOFFIRSTREFUSALFORTHECITYTOPURCHASEAFRANCHISE
Inadditiontonoticeofanimpendingsale,thenewfranchiseagreementcouldstipulatethattheCityhas
therighttomakeanoffer.IftheCity’sofferisaccepted,theCitycouldturntheterritoryintoaNew
EntrantZone.
Considerations:
TheCitywouldhavetosecurefundingtobuythefranchiseandmightnotrecoupthattotal
amountinasalethatisintendedtoachieveadditionalpublicpolicyobjectivesofreducing
barrierstoentryforwomen‐andminority‐ownedfirms.Thecostimpactswouldbedifficultto
predictandtobudgetfor.
TheCitywouldneedtohavethebusinessexpertiseonhandtoparticipateinvaluationand
competitivebiddingthatmightoccurwithasale.
Thissolutionhasthepotentialtomakeaccessibleacustomerbasethatminority‐andwomen‐
ownedfirmscouldcompetetoserve,butthereisnoguaranteethat:
1. thisoptionwouldcreateanappropriateanddesiredopportunityfornewentrants,and
2. newentrantswouldprevailinthenecessarycompetitiveprocess,ascompanieswithout
directexperienceprovidingresidentialcollectionservicemaybeatadisadvantage.

7
WhiletheCityofLosAngeles’approachresultedinonewoman‐ownedcompanybeingawardedasmallzone,no
minority‐ownedcompaniesreceivedafranchise.LosAngelesaddressedlackofaccesstoopportunitybyrequiring
andreviewingoutreachandsubcontractingplansaspartofthecompetitiveprocesstoawardzonestohaulers.
14
O
PTION4‐C:LOWERTHECAPONPERCENTAGEOFTOTALCUSTOMERSFORANYONEFRANCHISEEANDDISTRIBUTEEXCESS
CUSTOMERSTOANEWZONE
Reducethecaponthemaximumallowedpercentageoftotalcustomersforanyonefranchiseefromthe
current40%.Thecapcouldbesettoalevelsufficienttocreateoneormoreviablefranchiseterritories
fornewentrants.CurrentfranchiseboundariescouldbereorganizedtoconsolidatecustomersintoNew
EntrantZones.
Considerations:
Currentfranchiseeshaveexpressedoppositiontoproposalsthattakeawaycustomersfrom
existingcompanies.
Thissolutioncreatesapotentialcustomerbasethatintheorycouldgotominority‐andwomen‐
ownedfirms,but,aswithOption4‐B,thereisnocertaintythatitwouldproducethatresult.
Companiesoverthenewcapmaychoosetoselltheirexcesscustomerbasetoanotherhauler
thatmeetsCityrequirements.IftheCitypurchasedtheexcesscustomerbase,companies
withoutdirectexperienceprovidingresidentialcollectionservicemaybeatadisadvantageina
competitivebiddingsituation.
Thisisessentiallya“one‐timefix.”Afterthecapisloweredandanewentrantzoneorzonesare
createdandgrantedtonewentrants,thentheopportunitiesforadditionalcompanieswould
remainlimitedinthewaysdescribedabove.
Currentfranchiseesareconcernedthatifanewentrantweregrantedaterritorybelowmarket
rate,itwouldlowerthevalueoftheircompanies.
O
PTION4‐D:EXPLOREEXPANDEDREGULATIONOFASEGMENTOFTHEMULTIFAMILYMARKETCURRENTLYOUTSIDETHE
RESIDENTIALSYSTEM
Underthisscenario,theCitywouldembarkonaprocesstoconsiderexpandedregulationofmultifamily
collectionasameanstomeetbroadergoalsofequitableprovisionofservicesandimprovingmultifamily
programperformance.Theprocesswouldnecessarilyincludedeepengagementwithmultifamily
propertyownersandadvocatesforrenters/housingaffordability.
Considerations:
IsexpandedregulationnecessaryandthebestapproachtomeettheCity’sgoalsforthe
multifamilyprogram?Couldexpandedregulationhelpincreaserecoveryofrecyclingand
foodscraps,reducecontaminationinrecoveredmaterials,reducewaste,andincrease
equityfortenants?
TheCityandstakeholdershavepreviouslyexploredregulatingthecommercialopenmarket
(mostrecentlyin2006).TheCitydecidednottopursuethatapproachduetosignificant
oppositionfrombusinessesthatvaluechoiceinserviceproviderandreportthattheypay
lowerratesinPortland’sopenmarketthaninadjacentfranchisedjurisdictions.
Thisapproachwoulddisruptcurrentmultifamilycustomer‐haulerrelationships.Most
residentialfranchiseesalsohavemultifamilycustomersthattheycouldloseifthisoptionis
15
implemented(thoughtheycouldpotentiallygainothermultifamilycustomersinthe
process).Currentfranchiseeshaveexpressedoppositiontoproposalsthattakeaway
customersfromexistingcompanies.
Dependingonhowthisoptionisimplemented,itcouldchannelgrowthopportunitiesto
thosebusinesseswithafranchise,asmostnewhousingisprojectedtobemultifamily.
Howlargeistheopportunityinthemultifamilysector?Stakeholdersrequesteddataonthe
commercialmarket.Staffprovidedapreliminaryoverviewofthecommercialmarketdata,
includedasAppendixD.
Stakeholdersaskedthequestions:Arethereequityconcernsrelatedtotheopenmarket
systeminthecommercialandmultifamilysector?Arelarger,vertically‐integrated
companiesdominatingthemarketandmakingitharderforsmaller,minority‐andwoman‐
ownedcompaniestoparticipateandbenefit?
O
PTION4‐E:EXPLORERECONFIGURINGTHECITYFACILITIESANDPUBLICCONTAINERCOLLECTIONCONTRACTSTOFACILITATE
PARTICIPATIONBYMINORITY
‐ANDWOMAN‐OWNEDCOMPANIES
Thisoptionwasaddedafterthefirstgroupstakeholdermeeting.Currentfranchiseesidentifiedthe
opportunityassociatedwithanRFPforcollectionfromCityfacilitiesthatwaspostedinearlyDecember.
StaffexaminedoptionsassociatedwiththeCityfacilitiescontractaswellasthecollectioncontractsfor
garbageandrecyclingcontainersonpublicsidewalks.Informationaboutthesecontractswasshared
withstakeholdersbeforethesecondgroupmeeting(AppendixD).TheCityfacilitiescontractpaid
$640,000tothecurrentcontractorinFY16‐17tocollectanestimated5,000tonsofmaterialfrom129
facilities.Afranchisewithequivalentrevenuewouldincludeaboutonepercentoftheresidential
customerbase(1,500customers)andwouldgenerateabout2,000tonsofmaterial.Afranchisethat
generates5,000tonsofmaterialwouldbethesixthlargest.TheCitycurrentlypaysabout$600,000
annuallyforthepubliccontainercollectioncontracts.However,theprogramisexpandingand
collectioncostsareprojectedtoreach$2millionannuallyinfiveyears,whichisequivalentrevenuetoa
franchisewithabout3.5percentofthecustomerbase.Stakeholdersdiscussedthisoptioningroup
meetingnumbertwo.
Considerations:
SomestakeholdersfeltthattheCitycontractcouldbeagood“trainingground”fornew
entrants—providingthemanopportunitytoestablishweeklypickupandmonthlybilling,while
buildingtheiroverallbusiness.
SomestakeholdersfeltthattheCityfacilitiescontractdoesnotprovidetherightkindof
opportunitytoanewentrantforthefollowingreasons:thefacilitiesandpubliccontainersare
spreadoutacrossthecity,makingcollectionlessefficient;theoveralltonnageislimited;and
therearelimitedopportunitiesforgrowthovertime.
WhilefranchiseessuggestedtheCityfacilitiescontractcouldbefranchised,Citystaffbelieves
theCitycantakestepsoutsideofthefranchisesystemtoleveltheplayingfieldforminority‐and
woman‐ownedbusinessesinthecontractingprocess.
16
Strategy5:Donotrenewthefranchiseagreement.Plantoputcollectionserviceforresidentialgarbage,
recycling,andcompostingouttobidinacompetitiveRFP.
ThiswouldcreateanopportunityfortheCitytodevelopanewsystemforprovisionofcurbsidegarbage,
recyclingandcompostingcollection,includingbestpracticesforequityintermsofworkforceand
minority‐andwomen‐ownedbusinesses.
Considerations:
Thisoptionwouldbeasignificantchangetoasystemthatcurrentparticipants,staff,andmost
customersagreeisperformingwellasmeasuredagainstallthepreviouslyestablishedmetricsof
success–costcontainment,recoveryrates,customersatisfaction,etc.
Thisoptionwouldallowconsiderationofsustainabilityandsocialbenefitstobeincludedinthe
competitiveRFP,perhapsmodeledonL.A.’s“SmallZones”approach.
Inacompetitivebiddingsituation,companieswithoutdirectexperienceprovidingresidential
collectionservicemaybeatadisadvantage.
Thecurrentfranchiseesstronglyopposethisoption.Inadditiontoconsiderationsabove,
franchiseesreportthattheyhavemadesignificantinvestmentstosuccessfullymeettheCity’s
requirementswithinthefranchisesysteminanticipationofbeingabletocontinuetooperate
theirbusinessinthefranchisesystemintheyearsahead.
Manystakeholderswhoarenotcurrentfranchisees–includingequityadvocates–alsohave
reservationsaboutgoingtoacontractsystem.Theybelievethatthefranchisesystemworks
wellforlocalbusinessesandtheybelievetheCitycanaddressequitywithinthefranchise
system.However,theyhavealsoindicatedthatifbarrierstoopportunityforminority‐owned
businessescannotbereducedwithinthefranchisesystemthenthisoptionwouldneedtobe
consideredasapotentialremedy.
Somestakeholdersbelievethatthebarrierstoentryinthecurrentfranchisesystemshouldbe
viewedaspartofafunctionalapproachtoprovidingservicelikeautility.Thesystemisbuiltona
stablepartnershipbetweentheCityandthefranchiseesthathasmanybenefitstotheCityand
customers–likebeingabletoinvestoverthelong‐termincleanfleets,orbeingabletoweather
downturnsinthecommoditiesmarkets.Goingtonewcontractsandprovidersevenevery10‐15
yearsremovesthatstablepartnershipandrestartstherelationshipbetweenhaulers,theCity,
andcustomers.
Mostcontractsystemsinothercitieshavetendedtoawardasmallnumberofcontractstolarge
nationalfirms(forexample,Seattlehastwocontractorsprovidingresidentialcollection).Ifthe
CityofPortlandwantstopreservemarketsharethatlocalsmallbusinessescurrentlyhaveinthe
residentialcollectionmarkets,staffwillhavetodesignthecontractsystemtotrytodeliver
thoseoutcomes.
Therearecostsinvolvedinchangingserviceproviders,includingpurchasinganddistributing
containers(whicharethepropertyoftheserviceprovider).
Acontractsystemwouldresultinincreaseddisruptionforcustomerswhencontractsand
serviceproviderschange.
ThisoptionwouldrequiresignificantCitystafftimeandresources.
1
APPENDIXA
GuidingPrinciplesforFranchiseReview
TheCityofPortlandregulatesresidentialgarbage,recyclingandcompostingservicethroughafranchise
systemthataimstoprovidereliable,cost‐efficient,andenvironmentallyandsociallysustainable
curbsidecollection.CityCouncilestablishestheserviceofferingsandrates,endeavoringtomeetwaste
reductionandrecoverypolicygoalsandtheneedsofadiversecustomerbase.
1.AdvanceClimateActionPlangoals.
Reducefoodscrapssenttolandfillsby90percent.
Reducepercapitasolidwasteby33percent.
Recover90percentofallwastegenerated.
2.Ensurecost‐effective,safe,andenvironmentallysoundoperations.
Establishratesthroughaprocessthatpromotesoperationalefficiencieswhilemeetingpolicy
goals,includingequity.
Employarate‐settingmethodologythatprovidesfranchiseestheopportunitytoearna
reasonableoperatingmarginwithoutguaranteeingaspecificreturntoanyfranchisee.
Developprogramsandconductoperationstoensurepublicandworkersafety.
Reduceairemissionsfromcollectionvehicles.
Improvethesafetyofcollectionvehiclesforhauleremployeesandforotherroadusers.
3.Provideexemplarycustomerservice.
Respondpromptlytoandcommunicateappropriatelywithcustomers.
Usetechnologiestoprovidemoreresponsive,reliable,andconvenientcustomerservice.
Keepandmaintainaccurateandaccessiblecustomerandoperationalrecords.
4.Developaresilientandequitablesystem.
Increaseparticipationofwomenandminorityworkers.
Reducebarrierstoeconomicopportunitiesforminority‐ownedandwomen‐ownedcompanies.
Collectcleanandmarketablerecyclableandcompostablematerialstreams.
Maintaintheabilitytoadapttoemergingpolicygoals.
1
APPENDIXB–STAKEHOLDERSANDINTERVIEWQUESTIONS
In‐depthin‐personinterviews:
1. HarleyBird,formergeneralmanagerandpart‐ownerofRabanco'sU.S.DisposalandRecycle
Seattle
2. AlandoSimpson,CityofRoses
3. TonyJones,MinorityContractorImprovementProgram
4. NateMcCoy,NationalAssociationofMinorityContractors–Oregon(+consultant)
5. VallerieHill,GruetterSanitary
6. BrianHeiberg(+otherownersandstaff),HeibergGarbageService
7. JasonHudson,WasteConnections
8. DeanKampfer(+otherexecutivesandstaff),WasteManagement
9. DaveCargni(+otherowner),PortlandDisposalandRecycling
10. BethVargas‐Duncan,ORRAandPortlandHaulersAssociation(+consultant)
11. MikeMercer,MMercerConsulting
12. CherrieLouis,Elmer’sGarbageService
13. LizStart,SCRAPPDX
(Interviewquestionsonnextpage)

2
InterviewQuestions:
AgendaandQuestions:
1. Introductions
2. Reminder:Purpose,Outcomes,Process
3. Howdoyouthinkthisprocesswillworkornotwork?Concerns/Fears?
a. DoyoubelievethatthisprocesswillhelpusmeetproducetheoutcomesthatCity
councilislookingfor?Howcouldtheprocessbemoreeffective?
b. Whatareyourconcernsorfearsabouttheprocess?Whatistheworst‐casescenario
fromyourperspective?
c. Arethereotherstakeholdersthatweshouldengageinthisprocess?
4. Discussion:Increasingparticipationofwomenandminorityworkers
a. Whatareyourcompany’sgoalswithregardtoworkforcediversity?
b. Whatstepsareyoualreadytakingtoincreaseworkforcediversity?
c. Whatchallengesorsuccesseshaveyouhadhiringandretainingwomenorminorities?
d. Whatcouldwedotogethertoovercomethosechallengesorbuildonthosesuccesses?
5. Discussion:reducingbarrierstoeconomicopportunitiesforminority‐ownedandwomen‐owned
companies
a. Whatarethecurrentbarrierstoeconomicopportunitiesforminority‐ownedand
women‐ownedcompanies?
b. Whatcouldwedotoreducethosebarriersandgetmoreminority‐ownedand/or
women‐ownedcompaniesinvolvedinresidentialwastecollection?
6. HowconfidentareyouthatwecanworktogethertodevelopasetofrecommendationsforCity
CouncilthatincreasesworkforcediversityandreducesbarrierstoMWBEwhilealsoaligning
withtherestoftheguidingprinciplesforthefranchisereview?
a. Whatwouldgiveyouevenmoreconfidencethatwecanachievethisobjective?

*Theagendaandquestionsareguidesforourconversation.Welookforwardtodiscussingtheseissues
withyou.Pleasefeelfreetoraiseotherpertinentissuesthatarenotcoveredabove.
1
APPENDIXC–FRANCHISEWORKFORCEDEMOGRAPHICSURVEYDATA
InformationontheParticipationofWomenandMinorityWorkersinPortland’sResidential
SolidWasteandRecyclingCollectionFranchiseSystem
SourceInformation:2017FranchiseReviewEmployeeDataSurvey
ThePortlandCityCouncilestablished(amongothers)thefollowingguidingprincipleforthe2017
franchisereview:Increasetheparticipationofwomenandminorityworkers.
Inordertogatherinformationonthecurrentworkforceandtoestablishapreliminarybaseline,Bureau
ofPlanningandSustainabilitystaffandateamofconsultantsdevelopedandadministeredasurveyof
franchisees.Thesurveyrequestedthefollowinginformationonallfranchiseeemployeesservingthe
residentialfranchisesystem:position/job/classification,full‐time/part‐time,wage/salary,health
benefits,retirementbenefits,race/ethnicity,gender,homezipcode,datehired,andpercenttime
servingPortland’sresidentialfranchise.Thesurveyincludedaformforemployerstoprovideemployees
sothattheycouldselfreporttheirrace/ethnicity,gender,andhomezipcode.
Allthirteencurrentfranchiseesvoluntarilysubmittedinformationon322individualworkers(also
referredtoas“employees”inthisdocument.)Thedatathatthefranchiseessubmittedisnotuniform.It
ispossiblethatafewcompaniesonlysubmitteddataondriversandmanagers,whileothersincluded
administrativepositionsinadditiontodriversandmanagers.Notallcompaniessubmitteddataforall
fields,andanumberofemployeeschose“declinetostate”ontheindividualdemographicsurveyform.
Thetablesandfiguresbelowindicatethenumberofrecords(N)beingusedtogenerateanyparticular
presentationofthedata.
2
Figure 1. Employees by Race/Ethnicity (9 categories)
Figure 2. Employees by Race/Ethnicity (5 categories)
0.6%
0.9%
1.6%
2.2%
2.5%
3.7%
4.7%
9.3%
74.5%
0% 20% 40% 60% 80% 100%
Multi‐racial
SomeotherRace/Ethnicity
PacificIslander/HawaiiNative
Asian
AmericanIndian/AlaskaNative
Declinetostate
Black/AfricanAmerican
Hispanic/Latino
White/Caucasian
PercentofRespondents
EmployeesbyRace/Ethnicity
(n=322)
3.7%
4.7%
7.8%
9.3%
74.5%
0% 20% 40% 60% 80% 100%
Declinedtostate
Black/African‐American
Allotherrace/ethnicities
Hispanic/Latino
White/Caucasian
EmployeesbyRace/Ethnicity
(n=322)
3
Table 1. Comparison of residential franchise workforce demographics to the region’s
overall workforce demographics
Residential
Franchise
Employees
Percent of Total
Residential
Franchise
Employees
Percent of Total
City of Portland
Workforce
Percent of Total
Portland-
Vancouver-
Hillsboro MSA
Workforce
Race (Summary)
White / Caucasian 240 74.5% 76.7% 79.4%
People of Color 70 21.7% 22.7% 20.0%
Declined to state 12 3.7% NA NA
Total 322 100.0% 99.4% 99.4%
Race (Detail)
White / Caucasian 240 74.5% 76.7% 79.4%
Hispanic / Latino 30 9.3% 7.6% 9.2%
Black / African American 15 4.7% 5.1% 2.4%
American Indian / Alaska Native 8 2.5% 0.6% 0.5%
Asian 7 2.2% 6.6% 5.6%
Pacific Islander / Hawaii Native 5 1.6% 0.6% 0.4%
Some other race/ethnicity 3 0.9% NA NA
Two or More 2 0.6% 2.2% 1.9%
Declined to state 12 3.7% NA NA
Total 322 100.0% 99.4% 99.4%
Gender
Male 276 85.7% 53.4% 52.0%
Female 40 12.4% 46.6% 48.0%
Other 1 0.3% NA NA
Declined to state (2) / blank (3) 5 1.5% NA NA
Total 322 100.0% 100.0% 100.0%
4
Notes on Table 1:
1) Source for Portland City and Portland MSA data is the EEO Tabulation of U.S. Census Bureau, 2006-2010
ACS Survey data.
2) NA = not applicable due to fact that the Census does not have a “decline to state” option; the Franchisee
survey included a “decline to state” option.
3) Percentages in the Census data add up to between 99%-100% due to the way that the Census calculates
the Two or More Races category.
4) People of Color = all race/ethnicities other than White / Caucasian.
Figure 3. Franchise Workforce by Race/Ethnicity compared to Overall Portland Workforce
1.5%
1.6%
2.2%
2.5%
4.7%
9.3%
74.5%
2.2%
0.6%
6.6%
0.6%
5.1%
7.6%
76.7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Other/Multi‐racial
PacificIslander/HawaiiNative
Asian
AmericanIndian/AlaskaNative
Black/AfricanAmerican
Hispanic/Latino
White/Caucasian
FranchiseWorkforcebyRace/Ethnicitycomparedto
PortlandWorkforce
OverallPortlandWorkforce FranchiseEmployees
5
Table 2. Occupational positions by people of color and women employees
Occupational position
Total
employees
People of Color Women
# of
employees
% of
position
# of
employees
% of
position
Driver 205 41 19.7% 1 0.5%
Administrative 29 1 3.3% 26 89.7%
Manager 27 1 3.6% 7 25.9%
Maintenance 24 9 37.5% 2 8.3%
Mechanic 13 5 38.5% 0 0.0%
Helper 6 5 83.3% 0 0.0%
Unknown 6 5 83.3% 1 16.7%
Ops Specialist 4 0 0.0% 2 50.0%
Controller 1 1 100.0% 1 100.0%
Driver/Supervisor 1 1 100.0% 0 0.0%
Supervisor 1 1 100.0% 0 0.0%
Total 317 70 21.7% 40 12.6%
Notes on Table 2:
1) People of color = all race/ethnicity categories other than “White/Caucasian” and “decline to state”
2) N = 317 workers with position and demographic information
6
Table 3. Hourly wage by position and percent people of color and women
Position
# of
employees
Mean
hourly
wage
Median
hourly
wage
% in
position
who are
POC
% in
position
who are
Women
Manager 16 $ 55.62 $ 48.25
3.6% 25.9%
Driver 206 $ 24.28 $ 24.76
19.7% 0.5%
Mechanic 13 $ 24.25 $ 24.00
38.5% 0.0%
Maintenance 3 $ 22.67 $ 19.00
37.5% 8.3%
Administrative 28 $ 21.55 $ 19.13
3.3% 89.7%
Helper 5 $ 14.43 $ 13.07
83.3% 0.0%
All positions 271 $ 25.67 $ 24.76
21.7% 12.6%
Notes on Table 3:
1) Two franchisees did not supply wage data for all of their employees; data are missing for 39% of workers in
one instance and 31% in the other.
2) As a result, we only have wage data for 271 out of 322 employees.
3) When annual salary was provided instead of hourly wages, the salary was divided by 2,080 (hours) to
transpose it to a wage figure.
4) Representation of percentages of people of color and women in these positions are calculated from all
records with occupational and demographic data, including those records that lacked wage data.
7
Figure 4. Percentage of Positions (with Mean Wages) held by People of Color and Women
Table 4. Participation of Women and People of Color by Franchise Workforce Size
(measured by total employees working in residential franchise)
# Employees
# of
companies in
this category
% POC
employees
% Women
employees
1-9 5 25.0% 12.5%
10-19 4 20.0% 18.9%
20-49 2 18.8% 22.6%
50+ 2 23.0% 7.5%
All
categories
13 21.7% 12.6%

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Manager
($55.62)
Driver
($24.28)
Mechanic
($24.25)
Maintenance
($22.67)
Administrative
($21.55)
Helper
($14.43)
PercentageofPositions(AverageWage)Heldby
PeopleofColorandWomen
%inpositionwhoarePOC %inpositionwhoareWomen
1
APPENDIXD
InformationforFranchiseReviewEquityOptionsStakeholders
Tonnageforresidentialmultifamily,andcommercialprograms—Belowisthebestinformationthatwehaveandisacombinationofhauler
reportsandforthemultifamily,anestimatebasedonarecentregionalstudythatresultedinaperunitaveragegenerationforgarbageand
recycling.Pleasenotethatthedatabelowreflectsonlythematerialcollectedbypermittedhaulers.Whenweincludematerialcollectedby
otherentitiessuchasindependentrecyclersorself‐hauledtotransferstationsorcompostingfacilities,forexample,thepercentageattributedto
commercialgeneratorsis80%andthepercentageattributedtoresidentialgeneratorsis20%.
Table1
MaterialSource Garbage Recycling
YardDebris/
FoodScraps
Concrete,
Rock,Dirt
andRubble
All
Material
Streams
Percentof
Total
Tonnage
Commercialmaterial(frombusinessesandother
organizations)ascalculatedfromtotalreportedbypermittees
minustheexcessmultifamilymaterialestimatedbyregional
perunitaveragesaboveandbeyondthatmultifamilymaterial
reportedbypermittees 187,600 70,300 23,700

9,400 291,000 41%
C&D/Drop‐offmaterialasreportedbypermittees 87,700 11,600 700

24,200 124,200 17%
Multifamilymaterial(5unitsormorepertaxlot)usingregional
perunitaveragesforgarbageandrecyclingandhaulerreports
foryarddebris/foodscraps 84,400 21,100 1,900 ‐ 107,400 15%
TOTALCOMMERCIAL 359,800

103,000 26,300

33,500 522,600 73%
    ‐  
Residential(uptofourunitspertaxlot)asreportedby
franchisees 64,800 49,400 80,600 ‐ 194,800 27%
    ‐  
GRANDTOTAL 424,600

152,400 106,900

33,500 717,400 100%
2
CityofPortlandFacilities—TheCityofPortlandbidsoutgarbage,recycling,yarddebrisandfoodscrapcollectionfor129Cityfacilitiesacrossthe
city.Thecurrentcontractpaid$640,000inFY16‐17tothecontractor,Trashco(recentlypurchasedbyRepublic).Thecurrentcontractruns
throughFebruaryandanRFPhasjustbeenpostedforthiswork(availableonlineat
https://procure.portlandoregon.gov/bso/external/publicBids.sdoifyouregisterasavendor).Ihaveattachedthespreadsheetshowingservice
levelbylocation.You’llnotethattheinformationisbycontainervolumeandcollectionfrequencyanddoesnotincludetons.TheCityuses
estimatesoftonnagebasedonweighttovolumeratios.Thecurrentratiosareonpage30oftheRFP.ForFY16‐17thetonnageestimatesbased
onservicelevelandtheweighttovolumeratiosareasfollows:
Table2
Estimateoftonsofmaterialfrom129Cityfacilities
collectedbycurrentcontractorinFY16‐17
Garbage 3,700
MixedRecycling 900
Wood 200
FoodScraps 200
TOTAL 5,000
PleasenotethatCityBureausreportanadditional4,100tonsofrecycling,wood,andyarddebrisand7,200tonsofleavesthatarecollectedby
BureausthemselvesorotherentitiesoutsideoftheCityFacilityCollectioncontract.
PublicTrashCanProgram—BPScontractsforcollectionofgarbagefromapproximately700publictrashcanslocateddowntownandinnine
otherbusinessdistricts(also165recyclingcontainersonthedowntowntransitmall).BPSisexpandingthisprogramthroughoutthecitytoan
additional24businessdistrictsoverthenextseveralyears.Collectionisprovidedbycommercialhaulersselectedthroughacompetitiveprocess.
Thecurrentannualcollectioncostisapproximately$600,000.
3
Commercialtonnagebypermittee—WecheckedwiththeCityAttorney’sofficeandtheyprovideduswiththeattached2004orderfromthe
DistrictAttorneystatingthatcommercialtonnagebypermitteeisexemptfromdisclosureperORS192.501(5).InorderfortheCityAttorneyto
formallyconsideryourrequest,youwouldneedtofileapublicrecordsrequestthroughwww.portlandoregon.gov/prr.
Weappreciatethestakeholderinterestinunderstandingtheexistinglandscapeaswediscussoptionsforincreasingequityinthecollection
system.Inordertotrytoprovideasenseofthelandscapewearehappytohelp“sliceanddice”thedataintodifferentcategories.Forexample,
hereisFY16‐17datafortonnagecollectedbycompaniesbasedinOregonandWashingtoncomparedtothosebasedoutsideofOregonand
Washington.PleasenotethatthetotalsforCommercial(businesses)andMultifamilydonotmatchthetotalsinTable1wherethereported
Multifamilytonswerereplacedwiththeexpectedtonnagebasedonarecentregionalstudy.
CompaniesbasedoutsideofOregonandWashingtonincludeArrow,Recology,Republic,andWasteManagement.TonnagereportedbyEckert
(purchasedbyWasteManagement)andTrashco(purchasedbyRepublic)wasincludedinthiscategory.
Hereisacurrentlistofallcommercialpermitteesandtheservicestheyprovide:https://www.portlandoregon.gov/bps/article/110895.
Companiesbased
outsideofOR/WA 272,979 79% 62,233 50% 34,959 66% 94,796 49% 465,000 65%
Companiesbasedin
OR/WA
72,609 21% 62,013 50% 17,848 34% 100,013 51% 252,500 35%
Total 345,589 124,247 52,806 194,809 717,500
Table3
Commercial(businesses
andotherorganizations)
C&D/Drop‐off
Multifamily(material
reportedbypermitteesis
abouthalfofexpected
tonnagebasedonregional
study) Residential AllMaterial