AgdaPkt 2006-08-28 - Laserfiche WebLink

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78 SBWMA Contractor Selection Process Executive Summa~age 17 -" -. , . .... --. ...... Summar;! of PAF and PAC Recommendations less than $10,000 per incident. Contractor shall notify and seek approval from the SBWMA prior to completing maintenance or repairs which exceed $10,000. <new) C. Compensation and Rates . Compensation for Collection and Facilitv Operations Contractors. The simplified compensation method involves conducting a detailed review every three years <or more frequently if requested by the SBWMA or member agencies) with an index adjustment process in the interim years plus consideration of actual costs for a few categories that are outside the contractor's control (e.g., per..gallon fuel costs, workers' compensation premium rates, and insurance premiums). (new) Contractor's profit would be calculated using an operating ratio. Actual costs would not be reconciled to forecasted costs so that the contractor compensation is not increased to make up for increased costs (or decreased to reflect reduced costs) with the exception that the actual costs for a few cost items would be annually reconciled against forecasted costs. The annual revenue reconciliation process would be continued as currently performed to make the contractors whole for its annual compensation, because the contractors are not responsible for setting rates. <new) . Rates for Collection and the Facilitv. Annually, member agencies will review collection rates and adjust (as appropriate). Annually, the SBWMA shall review and adjust (as appropriate) the collection contractor's proposed allocation of the SBWMA-wide collection contractor's compensation to each member agency, and recommend each member agency's portion of the collection contractor's compensation for member agency approval. (unchanged) Annually, the SBWMA will review and adjust (as appropriate) fees for the Shoreway facility. (unchanged) . Compensation for Off-Site Processina Contractors . Compensation for processing services shall be on a per-ton basis, which is adjusted annually using a publiShed economic index. For organic materials processing, the per-ton rate would be adjusted using a cost index; and, for recyclable materials processing, the per-ton revenue would be adjusted using a cost index or recyclable materials market price index. (unchanged) D. Incentives for Contractor's Performance . Collection and Operations Contract. A two-phase performance management method for the collection and facility operation contracts will be used to provide both positive and negative incentives related to diversion, quality of collection Hilton Famkopf & Hobson, LLC ES-10 -