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<br />7C <br />efficiencies associated with developing a regional campaign in lieu of a stand-alone Page 3 <br />campaign which would be more costly. <br /> <br />. The contract includes extensive reporting requirements which will be a great <br />improvement in the scope and timeliness. of information shared between the <br />collection company and the City. <br /> <br />. The contract includes extensive performance incentives/disincentives (attachment <br />three) and liquidated damages provisions (attachment four) to ensure that <br />anticipated performance by the company is met, maintained and potentially <br />exceeded. <br /> <br />. The method to pay the company for services provided will be significantly different <br />from the current "cost-plus" system, as adjustments to compensation in the new <br />contract are primarily based on predetermined published indices (attachment five). <br />In addition, the process to make the annual adjustments to compensation will also <br />be brought in-house to the SBWMA, thus saving the SBWMA approximately <br />$200.000 in consultant fees annually. <br /> <br />California Environmental Quality Act (CEQA) <br />The Agreement will provide for an increased level of service in the City that could <br />potentially have some environmental impacts related to traffic, noise, pollution etc. <br />Such matters were discussed and analyzed in a 2008 Mitigated Negative Declaration <br />(MND) for a Use Permit in San Carlos for the improvements to the Shoreway Recycling <br />and Disposal Center. A legal opinion has been obtained by legal counsel to the <br />SBWMA indicating that CEQA can be complied with as to action on the Franchise <br />Collection Agreements of the Member Agencies by referring to the MND as an <br />adequate environmental document pursuant to CEQA and CEQA Guidelines for the <br />purposes of analysis and consideration of a Franchise Collection Agreement. A copy of <br />the MND is on file with the City Clerk and available for review. CEQA language has <br />been included in the Resolution approving the Franchise Agreement. <br /> <br />New Containers <br />Residents will be provided with three wheeled carts: one each for solid waste, <br />recyclables, and organics collection. The default cart sizes will be: <br />. Solid Waste - 32 gallons <br />. Recyclables - 64 gallons <br />. Organics - 96 gallons <br /> <br />The "default" sizes will be the cart sizes delivered to the residential customer unless the <br />customer requests a specific size during roll-out of the new services. In addition to the <br />above cart sizes, a 20 gallon option for garbage collection is available, as well as 64 or <br />96 gallon carts for recyclables or organics. The carts will be owned by Recology with <br />the cost included in the monthly collection rate. <br /> <br />Implementation Schedule <br />. September 2009 - New vehicles ordered <br />. June/July 2010 - Public education and outreach begins <br />. August 2010 - Cart sizes selected <br />. September 2010 - Cart delivery begins <br />. January 1, 2011 - New service begins <br />