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88 Page 143 SBWMA January 16 Questions HBC did sign the MOU with the Teamsters. The document we signed mirrors the language included in the ex.isting union contracts in place at the SRDC facilities and the language related to the Unions that was included in the RFP. SInce signing the MOU, HBC management has not had any contact with the T'eamstcl'S or their representatives. . Self-Haul Diversion o Increasing tlie diversion of self.haul tonnage is a stated goal of the SBWMA. HBC has offered a primary plan and options for the achievement of material recovery and diversion of self-haul materials. At minimum, SBWMA expects that the new contractor will maintain the current diversion level. Using HBCs proposed self- haul recovery program, please propose a specific self-haul diversion guarantee that will exceed that achieved under the current program. HBC fully understands the Authority's goal in the operation of the SRDC facilities~ and shares SBWMA's commitment to reduce the volume of solid waste' ultimately sent to the landfill. BBe, as a recycling company, has no interest in or desire to increase solid waste generation. However~ diversion needs to be done rationally. Throughout our discussions with the Authority on the topic of diversion, a consistent challenge in making a specific diversion commitment has been the uncertainty of quantities and composition in future years. According to the most recent Allied Waste reporting data provided by SB\VMA on 2/18/09j total solid \vaste generated in the SBWMA system over the last five years has declined fi'om a high of535)OOO tons in 2005 to a low of 462,000 tons in 2008, a decline of almost 14%. During that same period~ total self-haul volume through the transfer station (I.e. non-residential and non-commcrcial streams) has fluctuated by almost 72%, with a high of 151,000 tOllS in 2005 to a low of 109,000 tons in 2008. 'fhe transfer station diversion rate (including self~haul diversion, but excluding residential and commercial recycling) has ranged from a 10\\1 of29% in 2005 to a high of47.4% in 2008. With high variability in both total waste generation and the self-haul side of the transfer sUltion~ and with changing dynamics of the economy and as single-stream cornes on line~ it is difficult to have certainty with regard to what materials will be recoverable and in what percentages. The SB\VMA RFP states that "in 2006,50% or 27,150 tons of self-hauled tonnage delivered to the SRDC was recovered. Of this self-haul tonnage, diverted C&D material comprised 19,624 tons [i.e. 720/0 of aU self:'haul tonnage] with the balance composed of plant material". \Vith recent declines in the housing sector, we expect that volumes ofC&D wastes~ one of the primary targets ofa diversion program, will drop significantly, causing a dramatic change in the self-haul diversion picture. Clearly the first 50% of selt:'haul material diverted from the SRDC waste stream is the easiest and least costly to divert, the "low-hanging fruit" of the self.haul waste strcalll. Recovering incremental tonnages from the remainder of the self-haul stream Hudson Baylor Corporation 3/16/09 Page 4