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88 Page 118 Selection Committee. (Appendix I contains a table of the cost changes described above ). If SaR is selected as the facility operator, the final decision for SBR to operate the Shoreway facility should be predicated upon successful negotiation of a MRF sorting system equal to or less than the cost proposed by the company. 6. Union Issues Hudson Bavlor Corooration has executed a Memorandum of Understanding (MOU) as prepared by Teamsters Local 350. SBWMA has sought a clarification from HBC regarding their understanding and intent regarding the MOU. A copy of SBWMAs' letter requesting clarification and HBC's response is attached as Appendix G and H. South Bav Recyclino. During the January 22nd SBWMA Board Meeting, James Furgas (Teamsters - Local 350 Business Representative) stated that the Teamsters - Local 396 of Southern California had "major problems" with Community Recycling. On January 30th, Mr. Furgas forwarded to the SBWMA an email correspondence from Hector Delgado, a Teamster - Local 396 Business Representative. Mr. Delgado's email (See Appendix J) cited two primary areas of concern; 1) that Community's owner, Tom Fry, was not directly involved in grievance hearings and negotiations, and 2) that working conditions for the non-union M RF sorter/pickers are substandard. In an attempt to verify Mr. Delgado's claims, Joe Sloan, acting as a consultant in the SBWMA's facility selection process, revisited the Sun Valley operation. Mr Sloan noted that Community's Sun Valley facility is a wholly outdoor operation and its operational features and working environment are not unlike those of a landfill, a compost operation, or an agricultural operation. As stated in Mr. Delgado's emaH, port-a-potties are used at Community Recycling. This is because there is no facility building to house employee facilities. There is, however, a structure that hosts a break room with tables, chairs and a microwave oven that is available for use by MRF employees. Related to the sorting areas, there are only awnings that cover the outdoor sort lines. Much of the activity at the site revolves around processing C&D, green waste and food waste. These materials are typically processed by heavy equipment (excavators, backhoes, wheel loaders, and deck sorters) in outdoor environments. A local example is Zanker Road Resource Recovery where the SBWMA's materials are processed outdoors by use of heavy equipment and sort lines. Community's Sun Valley facility is a tremendously busy site with substantial noise and dust created by the open-air operation of machinery and truck traffic. As with other outdoor operations, workers are routinely exposed to the elements; heat. cold, wind, noise, and dust. In accordance with the RFP requirement, SBR has based the labor component of its proposal upon the terms and conditions of the Collective Bargaining Agreement (CBA) that currently governs labor relations at the Shoreway facility. Further, the company has stated its unequivocal commitment to endorse and abide by the terms of any CBA that is in effect upon the company's commencement of service at Shoreway. Both companies have provided updates regarding interaction with the Teamsters (See Appendices G and H). 7. Operational Standards and Liauidated 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 Facility Operations Evaluation Committee Report: 3/18/2009 Page9