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88 Page 112 monitor and test inbound recyclables for excessive contamination and moisture. Moisture and contamination are of notable concern for recycling companies because they heavily influence the pricing that material buyers are willing to pay and also are items with MRF operators have limited control. SBR responded to the Evaluation Committee's request with a load sampling and testing protocol. that is fair and balanced and can serve as the starting point for negations should the company be selected by the SBWMA Board. SBR's documentation and description of the moisture and contamination issues is attached as Appendix A. 2. References The SBWMA received proposals from seven firms in response to the Facility Operations Services RFP issued on March 4, 2008. Sloan Vazquez Consultants (SN) were hired to assist the SBWMA in the evaluation process and SN began by conducting proposer reference checks for each of the seven proposers. After the short list selection decision, the SBWMA Evaluation Committee requested that Sloan Vazquez conduct a second-round of reference checks on both short listed companies to provide the Selection Committee with an up-to-date review of HBC's and SBR's permit and violation status. A summary of the prior and updated permit and violation history of the short listed companies follows. Hudson Bavlor Corporation received high marks from their listed references. HBC's references were re-interviewed in February 2009 with positive responses from each of their New York and Arizona references. SBWMA has also re-interviewed references for the company's proposed transfer station sub-contractor, Waste Solutions Group. A listing of the references is attached as Appendix B. According to Hudson Baylor's references, the New York facilities are recycling processing plants and are not regulated as Solid Waste Facilities (by California SWFP standards). Also, according to Arizona authorities, the company's Phoenix area plants are not currently regulated for environmental compliance. South Bav Recvclinq is a joint venture of Potential Industries and Community Recycling. In reference checks performed by S/V, Potential Industries received excellent recommendations from their listed customer references. The initial reference checks conducted on South Bay Recycling's managing partner Community Recycling were conducted early in the selection process (1 year ago) and the responses from the company's customers were generally favorable. The City of Los Angeles' Local Enforcement Agency (LEA), however, issued an unsatisfactory response regarding the permit status of Community Recycling. The results of Community's reference checks were factored into SBR's scoring and ranking and were documented in the July 24, 2008 Selection Committee Report. Additionally, concerns over Community's housekeeping practices were discussed in the July 24, 2008 and the January 15, 2009 Selection Committee Reports which characterized Community Recycling's housekeeping practices as "sub-standard" and "an area of concern." Community Recycling's Local Enforcement Agency is the City of Los Angeles whose Environmental Supervisor is Mr. David Thompson. In the second round of reference checks conducted by SN, Mr. Thompson and a review of public records have confirmed important facts regarding the regulatory compliance record of Community Recycling. During 2007, the LEA issued a total of forty-two (42) Notices of Violation (NOV) to Community's Sun Valley Recycling and Transfer operations. Facility Operations Evaluation Committee Report: 3/18/2009 Page3