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<br />September 25, 2006 - A 1T ACHMENT 1 <br /> <br />7A <br />Page 22 <br /> <br />SBWMA Contractor Selection Process <br /> <br />Executive Summar <br /> <br />"'q lAM ~"I" <br /> <br />lCIll .4 ..........0lila4 T U <br /> <br />--, --- ""......... <br /> <br />Summary of PAF and PAC Recommendations <br /> <br />and operations services, and, responsiveness to customers. In the first phase, <br />contractors would be rewarded for superior performance. If necessary, in the <br />second phase, the contractor's substandard performance would be penalized <br />and contract management tools would be used to more closely monitor, and <br />thereby enhance, the contractor's performance. Note that for some performance <br />standards (e.g., failure to report or disposal of recyclable materials), the two- <br />phase performance management method may not be used; but rather a single- <br />phase method may be used to eliminate incentives and allow for assessment of <br />liquidated damages for substandard performance. (new) <br /> <br />. Off-Site ProcessinQ Contracts. Processing contracts would include a single, <br />detailed set of performance standards. Substandard performance would result <br />in liquidated damages, breach of contract, and/or termination of the agreement <br />for cause. Incentives may be incorporated into the contract to encourage <br />superior. performance if proposers recommend incentive mechanisms that are <br />suitable. (unchanged) <br /> <br />E. Other Contract Provisions <br /> <br />. Dispute Resolution. A three-step approach would be included in the collection, <br />facility operations, and processing contracts to resolve disputes: (1) direct <br />negotiations not to exceed 30 days, unless extended by mutual agreement of the <br />parties; (2) if direct negotiations fails, then mediation not to exceed 30 days, <br />unless extended by mutual agreement of the parties; and (3) if direct <br />negotiations and mediation fail. litigation, which shall be filed in a state court in <br />San Mateo County. (new) <br /> <br />e Indemnification <br /> <br />_ All contractors shall provide general and hazardous substance <br />indemnifications (unchanged) <br /> <br />_ The collection contractor shall provide indemnification specific to the <br />programs and tonnage diversion presented in the contract (new) <br /> <br />_ The composting and recyclable materials processing contractors shall <br />provide environmental indemnifications (unChanged) <br /> <br />_ The facility operating and the collection contractor shall indemnify the <br />SBWMA and member agencies against any site contamination that <br />occurs during their operation of the site (new) <br /> <br />. Insurance. In addition to the provisions in the existing agreements, new <br />requirements for employee fidelity bonds and workers compensation level at <br />"maximum statutory" limit (rather than the current statutory limit of $1 million) <br />shall be included. (expansion) <br /> <br />. Performance Assurance <br /> <br />_ The acceptable forms of performance surety shall be: <br /> <br />Hiifon Famkopf & Hobson, He <br /> <br />f:$- j 7 <br />