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<br />78 <br />FISCAL IMPACT Page 4 <br />There is no fiscal impact on the City's general fund due to the approval of a contract <br />with SBR. The cost to provide the services covered in the operations agreement are <br />included in the collection rates approved by the Council for residential and commercial <br />customers. <br /> <br />I n April 2009 when Council approved the selection of SBR as the facility operator the <br />recycling revenue guarantee provided by SBR to the SBWMA was calculated to be <br />$7.25 million. This was based upon the volume of recyclables processed at the <br />Shoreway facility in 2007. As specified in the RFP this guarantee is to be adjusted <br />based upon changes in the volume of recyclables processed. Since the recyclables <br />tonnage processed at Shoreway has declined due to the economic downturn, this <br />guarantee has been proportionally reduced to reflect the lower volume of recyclables. <br />This adjustment is called for in the RFP and would have to be made should another firm <br />have been recommended to operate the Shoreway facility. <br /> <br />Moreover, the following adjustments have been made to SBR's projected operating <br />costs as called for in the RFP: <br /> <br />Cost Item Impact: <br />2009 cost adjustment <br />VRS labor costs <br />change in sales tax <br />MRF and TS tonnage decrease <br /> <br />378,626 <br />330,019 <br />21 ,620 <br />(349,771 ) <br />$380,494 <br /> <br />(compared to temp workers) <br /> <br />The total cost for SBR to operate the Shoreway facility will be $14.32 million a year. For <br />comparison purposes only, Allied's projected compensation to operate the Shoreway <br />facility for 2009 is $17.1 million. Both the SBR and Allied figures are exclusive of <br />disposal costs. <br /> <br />f3/h <br /> <br />Brian Panty <br />Director of Finance <br /> <br />Peter Ingram <br />City Manager <br /> <br /> <br />ATTACHMENTS <br />1. Resolution Approving the Agreement for the Operation of the Shoreway Recycling <br />and Disposal Center <br /> <br />RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br />1. Operations Agreement with South Bay Recycling, LLC <br />2. Mitigated Negative Declaration for Shoreway Recycling and Disposal Center <br />Improvements <br />