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<br /> 78 <br /> SBWMA Contractor Selection Process Execuffve summa,J?age 18 <br /> -. 11. --. ""'- 1 "-- <br /> Summary of PAF and PAC Recommendations <br /> and operations services. and, responsiveness to customers. In the first phase, <br /> contractors would be rewarded for superior performance. If necessary, in the <br /> second phase, the contractor's substandard performance would be penalized <br /> and contract management tools would be used to more closely monitor, and <br /> thereby enhance, the contractor's performance. Note that for some performance <br /> standards (e.g., failure to report or disposal of recyclable materials), the two- <br /> phase performance management method may not be used; but rather a single- <br /> phase method may be used to eliminate incentives and allow for assessment of <br /> liquidated damages for substandard performance. (new) <br /> . Off-Site Processina Contracts. Processing contracts would include a single, <br /> detailed set of performance standards. Substandard performance would result <br /> in liquidated damages. breach of contract, and/or termination of the agreement <br /> for cause. Incentives may be incorporated into the contract to encourage <br /> superior performance if proposers recommend incentive mechanisms that are <br /> suitable. (unchanged) <br /> E. Other Contract Provisions <br /> . Dispute Resolution. A three-step approach would be included in the collection, <br /> facility operations, and processing contracts to resolve disputes: (1) direct <br /> negotiations not to exceed 30 days, unless extended by mutual agreement of the <br /> parties; (2) if direct negotiations fails, then mediation not to exceed 30 days, <br /> unless extended by mutual agreement of the parties; and (3) if direct <br /> negotiations and mediation fail, litigation, which shall be filed in a state court in <br /> San Mateo County. <new) <br /> . Indemnification <br /> - All contractors shall provide general and hazardous substance <br /> indemnifications (unchanged) <br /> - The collection contractor shall provide indemnification specific to the <br /> programs and tonnage diversion presented in the contract (new) <br /> - The composting and recyclable materials processing contractors shall <br /> provide environmental indemnifications (unchanged) <br /> - The facility operating and the collection contractor shall indemnify the <br /> SBWMA and member agencies against any site contamination that <br /> occurs during their operation of the site <new) <br /> . Insurance. In addition to the provisions in the existing agreements, new <br /> requirements for employee fidelity bonds and workers compensation level at <br /> "maximum statutory" limit (rather than the current statutory limit of $1 million) <br /> shall be included. (expansion) <br /> . Performance Assurance <br /> - The acceptable forms of performance surety shall be: <br /> Hilton Famkopf & Hobson, LLe ES-11 <br /> - <br />