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88 Page 18 New Issues liquidated Damaaes . An important feature of the Draft Agreement is the provision authorizing the SBWMA to impose Liquidated Damage charges. The Agreement cites many issues for which Liquidated Damage charges may be imposed including; maintenance of proper staffing levels, and the achievement of commodity/product quality standards. The list of Liquidated Damage items, penalties, and the procedure for assessment and payment must be defined and reviewed by the proposing companies for consideration. Self-Haul Diversion . Each of the proposers has offered primary plans and options for the achievement of material recovery and the diversion of self-haul materials at the transfer station. At a minimum the SBWMA expects that the new contractor will maintain the current diversion level. Though increasing the diversion of self-haul tonnage is a stated goal in the RFP, proposers have been reluctant to commit to either a tonnage or.a percentage diversion guarantee regarding this material stream. Utilizing the self-haul recovery programs presented in response to the RFP, HBC and SBR are being asked to propose a self-haul diversion guarantee that will exceed those achieved under the current program. Critical Milestones . Upon selection and award of the new facifity operating contract, the successful proposer must immediately commence the implementation of its proposed transition plan to include the installation of the new Material Recovery Facility equipment and the orderly start-up of MRF and transfer station operations. The selected contractor must propose and commit to the achievement of performance milestones that will lead to full and complete implementation at the commencement of service under the new contract. Failure to reach a contractual milestone will initiate a process whereby the SBWMA will issue a Notice to Cure. thereby placing the contractor on formal probation. If, during the probationary period. the contractor fails to cure the issue and achieve the milestone, the contractor may be declared in default. Upon determination of default, the contractor may be removed and replaced by SBWMA. . Critical Milestones include: o Institutional commitment to financing o Commitment to final design and purchase price for MRF equipment o Issuance of Purchase Order for Rolling Stock o Commitment to abide by the Collective Bargaining Agreement o Hiring of General Manager and other critical management team members o Personnel Training o Equipment Delivery and Installation SBWMA: Facility Operations Selection Committee 1/15/2009