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7.2.A. - Page 1 <br /> RE PO RT <br /> To the Honorable Mayor and City Council <br /> From the Cit Mana er <br /> November 4, 2013 <br /> SUBJECT <br /> Amendments to the Collection Services Franchise Agreement between the City of <br /> Redwood City and Recology San Mateo County <br /> RECOMMENDATION <br /> 1. Adopt a Resolution Approving Amendment No. One (1) to the Collection Services <br /> Franchise Agreement Between City of Redwood City and Recology San Mateo County. <br /> 2. Authorize the City Manager to execute administrative changes to the Franchise <br /> Agreement that are programmatic and financially non-substantive. <br /> BACKGROUND <br /> On January 1, 2011, following the execution of the new 10-year Franchise Agreement <br /> between Recology San Mateo County (Recology) and each of the South Bayside Waste <br /> Management Authority (SBWMA) Member Agencies, Recology began providing solid <br /> waste, recyclable, and organics collection services for the SBWMA service area. Each <br /> Franchise Agreement was developed and negotiated based on a Franchise Agreement <br /> template referred to as the Uniform Franchise Agreement for Collection Services and <br /> was approved separately by each of the SBWMA Member Agencies. <br /> Following two years of operating and contract compliance experience, it is time to <br /> review and implement revisions to streamline Member Agencies' Franchise <br /> Agreements. The intent of the review was to evaluate cost reduction options (both from <br /> Recology's collection costs and SBWMA's program costs); to eliminate contractual <br /> provisions that provide little or no value to either customers or Member Agencies; and to <br /> provide an avenue for each Member Agency to implement administrative changes on an <br /> as-needed basis. <br /> On March 28, 2013, the SBWMA Board recommended that the proposed amendments <br /> be approved by each of the individual Member Agencies. <br /> ANALYSIS <br /> There are three proposed amendments that comprise Amendment No. One (1) to the <br /> Franchise Agreement. SBWMA Legal Counsel recommended that these specific <br /> revisions should be approved by each Member Agency. The proposed amendments <br /> affect calculation of the disincentive and incentive payments for specific performance <br /> criteria outlined in Attachment I — Performance Incentives and Disincentives of the <br />