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7A Page 47 ATTACHMENT 2 correct. However, the franchise agreement is extremely comprehensive in scope and the penalties are severe for non-compliance in providing the required high level of services or for lapses in service. The idea that the company can increase its profit by "meeting a specified diversion percentage" is correct; however, this statement requires clarification. The incentive payment for increasing diversion is related to an increase in overall diversion. Decreases in both commercial sector and residential sector diversion will result in disincentive payments from contractor to the agencies. Once again, the future system that will be put in place emphasizes the SBWMA and its Member Agencies commitment and the value these communities place on diversion of solid waste from landfill, reduction in greenhouse gas emissions, and the true environmental leadership that is being pursued. Comment #13 Page 3 - 'Evaluation and Selection Committees" section The Grand Jury report states: IThe SBWMA divided thejudgingprocess for the Collections Sert/ices Contract into two committees: an Evaluation Committee and a Selection Committee. The Evaluation Committee analYzed and scored the proposaLr. The Selection Committee considered the recommendations of the Evaluation Committee and selected a Collection Services Contractor. " The first sentence implies that the SB\VIYfA unilaterally "divided the judging process" into two committees and the second and third sentences wholly discounted the process and actual roles and responsibilities of the Evaluation and Selection Committees. The RFP dearly prescribed how and by whom the proposals would be evaluated and the roles and responsibilities of both cormmttees in subsections 6.1-3 of the RFP, as follows: "6.1.1 Evaluation and Selection Process An Evaluation Team and Selection Committee will be assembled by the SBWMA and Member Agencies. 1be Evaluation Team, which may include industry consultants, other industry experts, and Ivlember Agency and SBWMA staff, will conduct a detailed evaluation of the proposals, rank proposals, and provide comparative descriptions of the proposals. The SBWMA Executive Director, with assistance from Evaluation Team as needed, will present the evaluation results to the Selection Committee. The Selection Committee will likely include: SBWMA staff, SBWMA Board Members, and high-level Member Agency staff. The Selection Committee will review the proposals and the evaluation summary information presented by the Evaluation Team, request additional data and analysis as necessary, and develop its recommendation for consideration by the SBW1vfA Board for collection services for the North and South Districts. The SB\VLvlA Board will review the Selection Committee's recommendation and approve that recommendation or form an alternative recommendation. The SBWI\tlA Board recommendation and a fmal evaluation report will then be presented to the :Member Agencies for approval. Ultimately, each Member Agency will select the collection Contractor to serve its community. Member Agencies will have the right to act in the best interest of its) residents and businesses, including the right to select a proposal that, in its opinion, SBWMA Grand Jury Response_Addendum 2.doc Page 6 of 17