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11/04/2013 Section Section Title Sco e of Administrative Chan e Rationale 6.02 Limitations on (1) Increase the Commercial Recyclables contamination The administrative changes related to this section have been Contamination threshold to 10%. implemented via good faith agreements between the SBWMA � (The threshold for the Term of the contract was originally and Recology that has resulted in delivering an annual cost established at 8%.) savings to the Member Agencies of approximately$325,000. (2) Formalize the Residential Recyclables contamination (1)This change formalizes the contractually prescribed threshold at the calculated 8.5%. contamination threshold for Residential Recyclables. The Agreement(s) prescribe that the results of the first four � (3)Conduct two Quarterly Contamination Monitoring quarters of Year One(i.e., 2011)shall be used to determine � Samplings in lieu of the four prescribed in the Franchise the threshold for the remaining nine years of the contract Agreements(i.e.,Attachment E-2).Any disincentive payment Term. ` will only apply to the quarter the sample is taken. (2)This modified the current threshold and establishes a lower � (4)Changing the Quarterly Contamination Monitoring threshold for the contamination of Commercial Recyclables. � Sampling to only twice per year requires a modification to how ` the annual diversion level is determined.This change will (3)As mentioned above,the company and SBWMA have result in the company applying the sampling taken during the agreed on several improvements to the contracts that will limit 15t and 2�d quarter to both quarters and the sampling taken for the risk or exposure to increases in costs to both Recology the 3�d and 4�quarters to both quarters. and the Member Agencies. This change limits risk for Recology by reducing the number of samplings conducted (5) Include as allowable recyclables items SBR is currently annually from four to two. In addition,this changes results in a marketing that are not defined as allowable. The standard to cost savings to the SBWMA in consultant expense for the firm include additional materials shall be those recyclables that that performs the sampling work. SBR has been actively separating and marketing for the 120 days prior to the month which the contamination sampling is (4)The parties have agreed that the items that are currently scheduled for. Such materials are to be identified prior to being delivered by Recology and segregated/marketed as sampling event and provided in writing to Recology. recyclables by the Shoreway facility operator(i.e., South Bay Recycling—SBR)should not be counted as contamination. This change is intended to include items marketed by SBR which were previously not counted towards Recology's . diversion statistics. ' 3 RESO.#15303 MUFF#801