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88 Page 107 South Bayside Waste Management Authority To: From: Date: Subject: Attachments: SBWMA Board Members Facility Operations Contractor Selection Committee March 18, 2009 Facility Operations Contractor Selection Committee Report Evaluation Committee Report The Facility Operations Selection Committee is transmitting the supplemental Evaluation Committee Report, dated March 18, 2009, to the SBWMA Board and Member Agencies with the intention of providing a final facility operator selection recommendation. This final recommendation is based on the completed analysis of "Open Items" that were sited in the January 15, 2009 Selection Committee Report and draft recommendation. A final recommendation was not made by the Selection Committee in January due to pending research and the need to resolve Open Items identified by the Evaluation Committee. The March Evaluation Committee Report (attached) provides a summary of the research into the Open Items performed by SBWMA staff and Joe Sloan (of SloanNazquez, Consulting) a consultant to the SBWMA for contractor selection process. The Selection Committee found that the Evaluation Committee Report provided sufficient information with which to make a final recommendation to the SBWMA Board of Directors and Member Agencies. Recommendation The research into the Open Items provided valuable information about the short listed contractors proposals but did not change the Selection Committee's recommendation to select South Bay Recycling, LLC (SBR) to operate the Shoreway transfer station and Material Recovery Facility (MRF). Therefore, the Selection Committee recommends South Bay Recycling, LLC as the Facility Operations Contractor at the Shoreway Facility. This recommendation is based on the review of all elements of the proposals submitted by the two shortlisted companies. In the final analysi s, the Selection Committee's resolution of the three following key Open Items weighed heavily in the retention of SBR as the recommended Shoreway Facility operator: labor issues, environmental compliance, and costs. Labor Issues: The original MaU, which the Teamsters requested SBR sign, would have required SBR to treat the MRF sorters as Union employees even though they are not currently covered by a Collective Bargaining Agreement (CBA). From the SBWMA's analysis, this represents "pre-negotiation" of the terms of the future agreeme.nt with Labor and would have potentially significant cost implications for the contractor and/or the SBWMA. By signing the MOU, SBR would be implying their willingness to accept SBWMA: Facility Operations Selection Committee Report 3/18/2009 Page 1