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88 Page 15 OVERVIEW On July 17, 2008 the Selection Committee issued a report to the SBWMA Board that recommended short listing Hudson Baylor Corporation (HBC) and South Bay Recycling (SBR). On July 24, 2008 the SBWMA Board approved the Selection Committee recommendation to short list the two firms and directed the Selection Committee to continue the selection process. Since the Board short list decision, the Evaluation Committee has had multiple rounds of questions and cost forms revisions that have modified the proposals received from the two firms. On January 7,2008 the Selection Committee met to consider the impacts of the modifications, to ?isCUSS items considered critical to the selection process, and to make a selection recommendation. The Selection Committee reviewed information presented by the Evaluation Committee (EC) regarding the supplemental evaluation of HBC and SBR and discussed the relative merits of each company's' proposed plans and costs for operating the Shoreway MRF and transfer station. During the Selection Committee review, it was clear to all the committee members that both of the short listed firms are well qualified and are capable of operating the facility to the SBWMA's expectations. After considering the information at hand, the Selection Committee concluded that, given the roughly equal standing of each company's terms of qualifications, it was critical to provide SBWMA rate payers the lowest cost option provided that no other factors identified in the collection process offset the financial advantage. South Bay Recycling's (SBR) proposed cost of service is approximately $1.1 million per year less that Hudson Baylor Corporations proposed cost of service. This difference in the cost of service has the potential to save the SBWMA rate payers $11.0 million over the ten year life of the contract. The Selection Committee recommendation of SBR is conditioned on resolution of several existing and new contractual issues .that have not been fully resolved or negotiated and are discussed below. Requests have been made of the companies for additional information and clarification of their proposed services; The SBWMA Board of Directors will consider action on the final contractor selection after the additional information is received by the Evaluation Committee and after input has been received from the Member Agencies. It is recommended that, if the issues associated with the South Bay Recycling proposal are not resolved prior to consideration by the Board of Directors, then SBWMA should initiate negotiations with HBC and delay action on the selection until those negotiations are completed. SBWMA: Facility Operations Selection Committee 1/15/2009