AgdaPkt 2016-05-09 Interview, Closed and Joint SA PFA

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6.3.B. - Page 5 Exhibit A Final Plan and Recommended Process for Supporting Member Agencies with Negotiating a Potential Franchise Agreement Extension with Recology San Mateo County Background Each of the Member Agencies has a Franchise Agreement (Agreement) with Recology San Mateo County (Recology) which started on January 1, 2011 and ends at midnight on December 31 , 2020. The Agreement(s) include the following provisions regarding the term of the Agreement and an extension: • SECTION 3.02 TERM The Term of this Agreement shall begin on the Effective Date and shall end at midnight on December 31 , 2020, unless earlier terminated, or extended as provided in Section 3.03. Contractor's obligation to Collect Solid Waste, Targeted Recyclable Materials and Organic Materials shall begin on January 1, 2011 at 12:01 a.m. and shall continue for the remainder of the Term. • SECTION 3.03 EXTENSION OF TERM During calendar year 2017, the Parties shall meet and confer on the possible extension of the Term. The contract extension decision period prescribed in Section 3.03 was set for a defined period to allow sufficient time to conduct a competitive procurement process if no contract extension was granted. It was determined that a three-year period (i.e., 2018- 2020) was needed to complete a competitive procurement process and transition to a new service provider, if applicable, given the scope of services, the size and complexity of the service area, and the lead time required. Key Assumptions • All Member Agencies, with the support and assistance of the JPA, will enter into negotiations with Recology for a potential extension of their Franchise Agreement beyond 2020. The JPA staff will take the lead in negotiating and drafting the uniform Franchise Agreement amendments that apply across all Member Agencies, including both minor/administrative changes and any major changes resulting from contract negotiations. Further, upon request, the JPA staff can assist individual Member Agencies with negotiating unique Franchise Agreement changes (e.g., if a Member Agency has a specific change in Recology's scope of services unique to their community). • The JPA Board will appoint an adhoc committee of TAC or designated Member Agency staff to review the Franchise Agreement amendments negotiated by JPA staff prior to such amendments being brought forward to the full Board for consideration. The Board will consider approval of the uniform Franchise Agreement changes and make a recommendation to forward the uniform Franchise Agreements to the individual Member