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<br />~G~ <br /> <br /> <br />SBWMA, Rethink Waste <br />Facility Operations Contracts Manager <br />Mr. Hilary Gans <br />610 Elm Street, Suite #202 <br />San Carlos, CA 94070 <br /> <br />January 23, 2009 <br /> <br />Re: Facility Operations RFP - Revenue Guarantee <br /> <br />Dear Mr. Gans; <br /> <br />The purpose of this letter is to provide you with an official written confirmation, <br />executed by a company officer, that our $7.25 million Revenue Guarantee does not have <br />any ~'set-off; mechanism. <br /> <br />We proposed that idea in our December 3, 2008 responses because we think it <br />provides a benefit to both parties. At the BOD meeting yesterday during the public <br />comment period for item #10 the concept was mis~represented as being some so.rt of an <br />out clause or waivering. However, those allegations are simply not true. The concept we <br />proposed was based on the mechanism being used by the City of New York under their <br />long term contracts for residential recycling. There would never be a payment below the <br />Revenue Guarantee. There would be an incentive for a contractor to continue providing <br />services and making payments during extended periods when commodity prices for <br />recyclable materials are at unusually low levels. <br /> <br />It is important for SBWMA to understand the rationale behind the proposal so <br />that others are not able to spin it to their advantage.~! <br /> <br />To re-confirm, we consider our "Set Off' proposal to have been rejected by <br />SBWMA and as such we have withdrawn it. We understand and agree that it will not be <br />considered in the evaluation process nor the operating contract itself. <br /> <br />Best Regards,. 3. tA~..., _ /&" A / <br />! ". ;.. '1t:;W-",~ ~ <br />'- /' . c.-O'~l i/ . <br />Dan Domonoske "- <br />Vice President <br /> <br />South nay Recycling, LLC <br />9189 De Garmo Avenue · Sun Valley, CA 91352 · 818-504-1431 <br /> <br />..--. 88 <br />Page 139. <br />