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services. SBWMA staff presented a recommendation and staff report to the SBWMA <br />Board on April 27, 2017. The staff report and supporting documents are attached. <br /> <br />As part of the negotiation process, the Board created the Franchise Agreement <br />Extension committee (FAX) with the following primary tasks: <br /> <br />· Develop an amended and restated Model Franchise Agreement to be presented <br />to the SBWMA Board of Directors at the April 27, 2017 meeting. <br />· Obtain and include feedback from the SBWMA Technical Advisory Committee <br />(TAC) at its April 13 meeting. <br />· Obtain Recology’s total revenue requirement (cost) to perform collection services <br />starting in rate year 2021 and establish a compensation adjustment methodology <br />to govern the rate changes in future contract years. <br /> <br />City of Redwood City staff served on both the FAX and TAC committees. Since <br />November 2016, the SBWMA negotiation team held a special TAC meeting in January, <br />seven FAX meetings and seven negotiation sessions with Recology. Several phone <br />meetings were also held between Recology, consultants assisting with the negotiation <br />process, and SBWMA staff. In addition, two all-day negotiations sessions were held to <br />finalize negotiations. <br /> <br />The recommended negotiated Franchise Agreement would provide: <br /> <br />· Consistency with all existing solid waste, recycling and organics services <br />· Avoidance of new service provider transition pitfalls (such as container switch- <br />out, customer service center setup, driver route training, hard-rollout of a new <br />truck fleet, developing a new rate setting process, and end-of-contract buyouts) <br />· Rate-setting stability/predictability: after an initial rate true-up, rate increases are <br />tied to indices <br />· Rates which will continue to be in-line with rates charged in other Bay Area <br />communities <br />· Continued cost savings from collection efficiencies gained by Recology’s years of <br />experience <br />· Sharing of future inflation risk by Recology in their 2021 Cost Proposal <br />· Savings of an estimated $2 million in avoided RFP and contractor-transition costs <br />· Maintenance of labor peace by continuing with a known company and <br />management team <br /> <br />The FAX has recommended an extension to the existing FA. Key terms of the <br />agreement are summarized in the following sections: <br />7.A - Page 2