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<br />78 <br />Attachment 2 Page 32 <br /> <br />SBWMA Contractor Selection Process <br /> <br />Executive Summary <br /> <br />Summary of SBWMA Board Recommendations <br /> <br />services. incentives will relate to diversion level, number of missed pick-ups, and <br />average hold time for customer service calls. For the operating agreement, <br />incentives will relate to diversion, single-stream processing residue levels, <br />quality of commodities, and average per-ton revenues. liquidated damages will <br />be established with performance standards set at readily quantifiable thresholds <br />to determine the enforcement of those liquidated damages.(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 />. 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 />· A letter of credit (new) <br /> <br />HF&H Consultants, LLC <br /> <br />ES-11 <br />