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7A Page 7 ATTACHMENT 1 up, the base contractual obligation will not change. Fluctuations are limited to some CPI- type index. Presumably, the company will buy, or has bought~ oil futures that secure.the price. . 5. For collective bargaining agreement (CBA) employees, labor and benefit costs would be adjusted to reflect the CBA pay and benefit rates for the Rate Year during the lenn of the CBA contracts in effect at the start of the Agreement. Both a worker-retention and prevailing-wage clause would be in the contract, but no labor-peace clause was included. 6. In order to submit a proposal, the competitors had to agree not to appeal the .process. 7. Alternate proposals were allowed, but the SBWMA was not required to consider them. 8. The new contract was designed for ease of oversight. 9. In the current SBWMA contract, AlHed collects the garbage and also operates the Shoreway Facility where the garbage is sorted and processed. In the new contract, the operation of the collection and processing will be split between two separate companies. 10. The collection company can increase its profit by lowering cost and meeting a specified diversion percentage. The facility operator can increase its profit by increasing revenues from recyclables and is dependent on the collector to bring recyclables to the facility in good condition. The Evaluation Process For Selecting A Collection Services Contractor On November 1, 2007, the SBWMA released the Collection Services Contract RFP to select the contractor to serve the SBWMA service area. By the March II, 2008 deadline for submission of proposals, the SBWMA received four proposals from companies qualified to provide the collection services described in the RFP. The four competitors for the Collection Services Contract were; 1. Allied Waste Services of San Mateo County (Allied) 2. Bayside Environmental Services & Transfer.CBEST), a joint venture of Peninsula Sanit.ary Group, South San Francisco Scavenger Company, Green Waste Recovery and Zanker Road Resource Management 3. Norcal Waste Systems of San Mateo County (Norcal), an Employee Stock Ownership Plan (ESOP) . 4. Republic Services of California, Inc. (Republic) Evaluation and Selection Committees The SBWMA divided the judging process for the Collections Services Contract into two committees: an Evaluation Cominittee and a Selection Committee. The Evaluation Committee analyzed and scored the proposals. The. Selection Committee considered the recommendations of the Evaluation Committee and selected a Collection Services Contractor. 3