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<br />Contactor shall provide the Authority a written explanation for the difference and <br />a suggested course of action to correct the marketing deficiency within 15 days. <br /> <br />B. Market Price Survey <br />Contractor will sell commodities from the MRF (and Buy Back Center) at or <br />above the prevailing market price for similar materials marketed by other <br />recycling companies in the Bay Area. The Authority will conduct a monthly survey <br />of local (i.e., in the nine-county Bay Area) purchasers and/or sellers of the <br />commodities of the type recovered at the Shoreway MRF and Buy Back Center <br />and marketed by the Contractor. SBWMA shall solicit price quotations from at <br />least three purchasers and/or sellers. The lowest price will be eliminated and the <br />arithmetic average of the remaining prices, as determined by the survey, will <br />establish the Commodity Market Survey Price for that commodity (see example <br />below). In any month during which the Contractor obtains prices less than the <br />Commodity Market Survey Price, the Contractor shall pay the Authority a dollar <br />amount equal to the difference between the average of the actual commodity <br />sales price (for the specific commodity) and the monthly Commodity Market <br />Survey Price for that commodity multiplied by the total tons that were sold during <br />the survey period.. <br /> <br />Examole: <br />Buyer/Seller # 1 - $1 02/ton <br />Buyer/Seller #2 - $1 OO/ton <br />Buyer/Seller #3 - $94/ton <br /> <br />(Buyer #3 is eliminated) <br /> <br />Buyer #1 + Buyer #2 = $202/2 = $101/ton <br />Commodity Market Survey Price = $1 01/ton. <br /> <br />Facility Agreement, Attachment 11 B <br />Commodity Price Assurance Mechanism <br />Page 3 of 3 <br />