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John Richardson, Senior Vice President for SBR, said the issue of the MOU has taken a life of its own and somewhat politicized the process. He said that only after the SBWMA released a list of bidders did the unions approach the finro bidders with the proposed inclusion of the MRF sorters. He referred to a few edits to the MOU that SBR proposed but were not acceptable to the union. Mr. Tenney interjected and clarified that they were contacted after they were short listed. Mr. Duplissea with HBR said he supports fairness and equity and signing the MOU is consistent with prior actions of the company he represents. He pointed out that the inclusion of the MRF sorters is a 9 cents a month increase per customer. He verified that HBR included the sorters in their numbers, and he believes they are not getting credit for that. He read excerpts from a letter that Shelly Kessler sent to the City Council making various environmental allegations regarding SBR. Mayor Foust told the speaker that the Council was in receipt of the letter, had reviewed it and so there was no need to publicly read it. Don Solsen representing SBR focused on the finro key reasons why this company should be selected. He said SBR will cost less to businesses and customers and will have a certified Environmental Impact Report by the end of the week. He explained that some of the environmental issues brought up were at a much older facility with less stringent requirements. Mike Mahoney, HBR noted that the original RFP's were submitted over 13 months. He spoke about what he believes is corporate integrity and competency. He alleged that there were multiple bid errors on the SBR document. He spoke about what he called HBR's exemplary environmental record. He believes they should be awarded the bid and that it is just not about money. He recalled that Norcal was not the lowest bidder but it was the best and he suggested Council should take the same action. Philip Chen, with SBR, spoke about capital costs included in the bid. He explained that certain items had to be revised on the bid based on requests made by the selection committee. William Jennings, with HBR, thanked the Council for all their work and attention to detail. He spoke about the tipping fee and the commodity fee. He said that another review is coming up from banks and other agents. He spoke about cash forecast possibly being an issue and the revenue guarantee was not considered. He said that they have no environmental violations and so he hopes Council takes in consideration the whole picture. He confirmed that the MRF sorters were included in the original figures. Council asked questions to the various speakers as they addressed the Council. Council Member Hartnett said that he is disappointed at the vagueness of the responses. He found it disturbing that there was a lot of guessing going on and he would have expected more transparency and certainty. JOINT CITY COUNCIL/REDEVELOPMENT AGENCY MEETING APRIL 13, 2009 MINUTES PAGE 7 MINUTE BOOK NO. 62 Page No. 344