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88 Page 119 Damage charges may be imposed including (i.e., maintenance of proper staffing levels, operational, the achievement of commodity/product quality standards, and performance standards). The details of the specific conditions that the facility is to be operated, cleaned and maintained are included in Attachment 3 General Operating Standards and Procedures of the draft Operations Agreement (issued as part of the original RFP). Proposers were asked to review and reaffirm their commitment to the: 1) Liquidated Damage items, penalties, and the procedure for assessment and payment; 2) the Operational Standards as defined in the Agreement. Letters from South Bay Recycling and Hudson Baylor Corporation have both acknowledged their agreement and commitment to the terms and conditions in these sections of the RFP. The Operational Standards and Liquidated Damages in the Draft Agreement are not final and will be further refined in negotiations. 8. Self..Haul Diversion Plan The Facility Operations Services RFP requested proposers to provide a plan for self haul materials diversion and to provide creative ideas for the diversion of materials entering the transfer station. The diversion of self haul material has improved recently under Allied Waste and the SBWMA is interested in continuing the upward trend in landfill diversion. All ~ of the proposers provided transfer station materials diversion plans in their March 4, 2008 proposals to the SBWMA. Each of the proposer's Transfer Station Diversion Plans provide descriptions of proposed options and operations for the achievement of self-haul materials diversion 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 guarantees. Utilizing the self-haul recovery programs presented in response to the RFP, HBC and SBR have been asked to provide a measurable and quantifiable self-haul diversion plan that will exceed those achieved under the current program. Hudson Bavlor Corooration's transfer station diversion plan considered the use of a self haul sorting station at the transfer station but felt that self haul diversion could be more effectively achieved through the use of excavators and hand labor on the transfer station floor. Waste Solutions Group (WSG) offered a thoughtful approach to the method of materials handling and sorting of self haul materials at the transfer station. HBC responded to the SBWMA's request for a detailed diversion plan by providing a unique gate-based incentive plan that encourages customers to source-separate self haul materials prior to dumping at the transfer station. The plan has an additional benefit to the SBWMA of potentially generating additional revenues through a sharing of cost savings between HBC and the SBWMA (The plan is described in Appendix K). In summary, the plan offered by HBC (WSG) proposes to use gate rate incentives to encourage customers to source separate materials into clean and separate materials streams (this program is similar to the existing Bunker Program where customers can dump dirt, concrete and other inerts at reduced rates). WSG has installed this type of program at other transfer station locations that they have operated and the company claims that the program was successful. at increasing the volumes of materials into the facility and reducing operating (sorting) costs. In the revenue share program, HBC and SBWMA would share in any financial benefit brought by the program 50:50. Additionally, the company will guarantee that the program will improve over Allied's current diversion and that any increase will be guaranteed into the next year. Facility Operations Evaluation Committee Report: 3/18/2009 Page 10