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7.2.A. - Page 3 <br /> exceeding $325,000 annually (Recology eliminated three positions and SBWMA <br /> reduced the frequency of contamination monitoring). The approval of this change <br /> would formalize these and other changes that all parties have agreed to. If <br /> approved, the City Manager would have the authority to approve the specific <br /> recommended amendments summarized in Attachment 2. <br /> ALTERNATIVES <br /> The Council may choose to forgo amending the Agreement and keep the existing <br /> Agreement as is. Not approving this Amendment may result in higher collection costs to <br /> the rate payers over time as higher incentive payments would be due the company. To <br /> date, six other member agencies have approved this amendment, four have it pending <br /> before their board/council and two have not scheduled it for their board/council yet. <br /> FISCAL IMPACT <br /> Changes to Attachment I (Performance Incentives and Disincentives) are also expected <br /> to eliminate the financial exposure of a payout by Redwood City to Recology for <br /> performance incentive payments related to initial Missed Pick-Up Events for 2012, <br /> reported to be $193,950 (unaudited) and a disincentive payment due from the company <br /> for the 90 Second Call Hold Time reported to be $22,255. <br /> SBWMA staff and Recology have already made good faith agreements resulting in cost <br /> savings exceeding $325,000 annually in both Recology costs (i.e. elimination of three <br /> positions) and reductions to the SBWMA budget (i.e. reduced contamination monitoring <br /> per Section 6.02 of the Franchise Agreement). <br /> ENVIRONMENTAL REVIEW <br /> This activity is not a project under CEQA as defined in CEQA Guidelines, section <br /> 15378, as it involves amendment of a Franchise Agreement, which is an administrative <br /> activity. <br /> ��z�� ����-�� <br /> MICHAEL GIBBONS <br /> PUBLIC WORKS SUPERINTENDENT <br /> GUC��� <br /> BILL EKERN <br /> COMMUNITY DEVELOPMENT DIRECTOR <br /> �" <br /> ROBERT B. BELL <br /> CITY MANAGER <br />