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Page | 10 SBWMA Recology Negotiations FAX Report 4/20/17 Table 3. Recology Negotiation Team Members Recology Negotiation Team Members Title Personnel Vice President, San Mateo/South Bay Region Mario Puccinelli General Manager, San Mateo County Division Mike Kelly Controller, San Mateo/South Bay Region Carl Mennie Administrative Services Manager, San Mateo Division Tammy Del Bene Public Affairs Manager, San Mateo Division Gino Gasparini Customer Service Manager, San Mateo Division Jeanette Haskell Attorney, Recology Corporate Bryce Giddens The team’s first joint meeting was held as a two-day introductory orientation on November 2 and 3, 2016, with the goal to identify critical discussion points that would shape the scope of the negotiations . These initial two meetings did not include HFH Consultants (their contract was approved in December), Jean Savaree (SBWMA staff and Recology agreed to have an open dialogue prior to attorneys becoming involved), or Bryce Giddens. There were a total of nine, three-hour negotiation meetings and two final eight-hour meetings. 3.4 2016 Rate Survey The SBWMA contracted HF&H Consultants, LLC (HF&H) to survey the solid waste rates for the jurisdictions located in the Bay Area counties of Alameda, Contra Costa, Marin, Santa Clara and San Mateo. The results of this survey showed that the SBWMA is currently below the Bay Area average cost that is charged to residential customers for a 32 gallon garbage can each month (average cost for a residential 32 gallon garbage can within the SBWMA averages $32.55 per month (monthly service costs ranged from $22 - $55 between jurisdictions) while the Bay Area surveyed averaged is $33.14 per month (costs ranged from $24.41 - $43.75 between jurisdictions). For further information, refer to Attachment B which details the rates for each jurisdiction and how they compare to member agency rates. 3.5 Development of Existing Operations Cost Review The SBWMA engaged Sloan Vasquez McAfee (SVM) in May 2016, to review and assess Recology’s 2016 costs, and to develop an Operational Cost Model (pro forma) that provides a cost of service analysis of Recology’s cost to deliver services required by their agreement with the SBWMA. The pro forma was used to validate Recology’s cost of service for reasonableness. SVM used Recology's actual costs as of 3/31/2016 to develop the pro forma. Recology calculated those costs using 6 months actual costs, October 2015 - March 2016, then projected the remaining 6 months. Where Recology did not provide information, SVM developed estimates b ased on accounting and financial principles, and their extensive experience and knowledge of the waste industry. 7.A - Page 20