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<br />7A <br />Page 6 <br /> <br />ATTACHMENT 1 . <br /> <br />Area. A key consideration for managing costs was the construction of the transfer station in San <br />Carlos in 1984, which is the only such facility in central San' Mateo County. Browning Ferris <br />Industries (BFI) built and operated the facility from its inception until the SBTSA purchased the <br />transfer station and adjacent Material Recycling Facility (MRF) from BPI in 1999. <br /> <br />Since the inception of the JPA, one company, Allied, previously known as BFI, operated both <br />the collection services and the disposal services of solid waste. The current SBWMA contract <br />with Allied is due to expire on J~uary 1,2011. In antiCipation of the contracCs expiration; the <br />SBWMA decided to initiate an RFP process for collections services and facility operations for <br />the next ten years to; <br /> <br />1. Introduce a single-stream recycling system to increase the use of recyclables and divert <br />garbage from the landfills and <br />2. Execute the new Shoreway Master Plan Facility (Shoreway Facility), which includes a <br />transfer stationt MRF, and Environmental Educational Center; and. <br /> <br />The SBWMA has stated that the Collection Services Contract will be one of the largest in the <br />United States. . <br /> <br />Selecting the Collection Services Contractor <br /> <br />'l. The proposals for collection services were submitted to the SBWMA for review and <br />recommendation. After the SBWMA recommendation was made~ each member agency <br />was to negotiate an individual contract with the recommended provider, depending on the <br />agency's individual needs. <br /> <br />2. There would be a one..year'truing up period, after which "the adjustment to costs is <br />objectively based on CPI;.type indices. The only other adjustnlent, besides the annual <br />index based adjustments, to a proposer's cost is related to service level changes for the <br />Collection Agreement. Since the RFP stated that certain assumptions must be used by all <br />proposers, there are two cost adjustments~ one for 2011 and another in 2013, for changes <br />in service levels from the RFP data to actual data [e.g., the number of single family <br />accounts~ commercial bin lifts and drop box pulls, requiring the driver to get out of the <br />truck]. The process to.adjust for service level changes is also objectively prescribed in <br />the Agreement. No adjustments to costs to reflect changes in service levels shall be made <br />afte~ the change made in 2013, when setting compensation for 2013 and beyond." <br /> <br />3. All proposers were required, when preparing their.proposals, to use the same operational <br />assumptions for key items such as residential cart sizes, use of new collection vehicles for <br />. core services, and use of new commercial collection containers. This requirement was <br />for the purpose of obtaining comparable cost proposals from proposers. Member <br />agencies retain the right to establish cart sizes for residents, use of used equipment, etc., <br />as part of the final negotiated scope of services and costs with their selected contractor. <br /> <br />4. The proposers will be held to their bid assumptions during the contract. For example, if a <br />company states that the price of gas -is $ 2.50 a gallon in its bid, and the price of gas goes <br /> <br />2 <br />