[GRRN] Fwd: City/IWM Contractor Incentives

GaryLiss@aol.com
Thu, 25 Mar 1999 18:00:59 EST


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I am referring the following message to you as I thought you might be
interested in this subject or might be able to help the City of San Jose
design the best system possible for its next round of its residential Recycle
Plus! program.

Please let me know if you would like to be included in future email referrals
on incentives and contract structure issues for City contracts with Integrated
Waste Management service providers.

Thanks!

Gary Liss
916-652-7850
Fax: 916-652-0485
******************************************************************************
**************************
In a message dated 3/25/99 1:32:59 PM Pacific Standard Time,
Robin.Moore@ci.sj.ca.us writes:

<< Subj: Request for Input
Date: 3/25/99 1:32:59 PM Pacific Standard Time
From: Robin.Moore@ci.sj.ca.us (Moore, Robin)
To: crra@ucsd.edu ('smtp:crra@ucsd.edu')

The City of San Jose, California, will be issuing a RFP for its residential
garbage and recycling collection and processing system in February 2000, and
is currently in the process of making some final decisions relative to the
structure of the proposal.

We are looking for input relative to:
- the use of performance bonds to protect ourselves in the event of
contractor default
- the use of incentive payments to encourage maximum diversion (sale of
recyclables) by the contractors
- the practice of revenue sharing

Performance Bonds
Do you require performance bonds of your contractors?
How much do you require (e.g. enough to cover 4-6 months of operations or
100% of contract amount)?
Have you ever had to execute a performance bond due to contractor default?
Did it work the way you'd expected?
If you don't use performance bonds, can you recommend an effective
alternative?

Incentive Payments:
Do you include incentive payments in your contract compensation structure?
How are they structured?
Do you believe they're necessary or that the same level of diversion would
be achieved through market incentives?

Revenue Sharing:
Do your contractors bear the entire burden of market risk, or do you share
market risk?
Does your "per ton recycled" rate vary with commodity prices?
How is this section of your contract structured?
Would you recommend this practice?


If anyone receiving this message has information on any of these subjects,
we would greatly appreciate your input. Please respond to:

robin.moore@ci.sj.ca.us

or...

Robin Moore
Environmental Services Department
City of San Jose
777 N. First Street, Suite 450
San Jose, CA 95126

(408) 277-5533

Thank you.

>>
to: waste@cedar.univie.ac.at (Wastenet), sanet-mg@amani.ces.ncsu.edu (Sanet),
recycle@envirolink.org (Recycle List), ENVIRONMENT-L@cornell.edu (Environment
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bcc: (brantley@ci.monterey.ca.us (Brantley, Angela, Monterey, CA),
Julie_Weiss@city.palo-alto.ca.us (Weiss, Julie' Palo Alto, CA),
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Davis, Local Agency Technical Council and Exec.Dir, Mountain and Desert SWMA,
CA), reganatsac@aol.com (Regan, Dan, Sacramento County, CA),
ricanthony@aol.com (Rick Anthony, for Imperial County, CA),
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iwma@iwma.com (Bill Worrell, San Luis Obispo IWM Authority, CA),
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DArmstrong@ci.victorville.ca.us(Dana Armstrong, Victorville, CA),
David.Skinner@ci.sj.ca.us (David Skinner, San Jose, CA),
George.Rutherford@ci.sj.ca.us (George Rutherford, San Jose, CA),
recycle@cc.northcoast.com (Tedd Ward, Del Norte County, CA), jerecycl@aol.com
(Joan Edwards, infamous), JMCCABE@oaklandnet.com (John McCabe, Oakland, CA),
KMHiggin@groupwise.san.ci.la.ca.us (Karen Higgins, Los Angeles, CA),
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robin.moore@ci.sj.ca.us (Robin Moore, San Jose, CA), hsanborn@ciwmb.ca.gov,
Rebecca.Brown@ci.woodland.ca.us (Rebecca Brown, Woodland, CA),
nicholseg@netdirect.net (Emily Nichols, West Central Indiana SW District & NRC
Board), janamail@swa-pbc.org (Jana Schimpff, Palm Beach County SWA, FL & NRC
Board), Velaville@earthlink.com (Lupe Vela, Los Angeles, CA),
lacazs@ci.sj.ca.us (Skip Lacaze, San Jose, CA),
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Padia, Alameda County WMA, CA), Ellen.Ryan@ci.sj.ca.us (Ellen Ryan, San Jose,
CA), DDevine@City.virginia-beach.va.us (Deb Devine, Virginia Beach, VA),
GDreckmann@ci.madison.wi.us (George Dreckmann, Madison, WI),
Ed.Steyh@ci.seattle.wa.us (Ed Steyh, Seattle, WA), Jo.Zientek@ci.sj.ca.us (Jo
Zientek, San Jose, CA), apothekers@metro.dst.or.us), (george@montara.com),
(CRRA@ucsd.edu, greenyes@earthsystems.org, SROC@ucsd.edu, Shelley
Billik@warnerbros.com, Rebecca.Brown@ci.woodland.ca.us, Precycle@sonic.net,
inc@northcoast.com, SRJZ25B@prodigy.com, RonRecycle, ASchneid@cats.ucsc.edu,
Scruza.dpw179@hw1.cahwnet.gov, SteveSuess, recycle@cc.northcoast.com,
ricanthony, CatWilt@utkvx.utcc.utk.edu, JMassey218, mff@igc.apc.org,
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aculver@essential.org, khenkels@ucsd.edu, kennedym@csus.edu,
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JMcCabe@pacbell.net, Ruth.abbe@sierraclub.org, Scott@cnt.org,
cri@essential.org, Trashbustr, Urbanor, Ecocycle@bcn.boulder.co.us,
Rtp@igc.apc.org, ZeroWaste, Aperry, DaveHWill, Youngje@well.com,
debdm@compuserver.com, Dimeanor, fishbein@informinc.org,
Brantley@ci.monterey.ca.us, lesswood@igc.org, Ned@tap.org,
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BJECON, PMSinnott, murray@cawrecycles.org, rgbest@cawrecycles.org,
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kmc452, TAL1@ci.berkeley.ca.us, SVEPYesney, SBMaves, jack_macy@ci.sf.ca.us,
JohnArmando@raischco.com, mitchell@rcf.usc.edu, Lcitrino@co.humboldt.ca.us,
DArmstrong@ci.victorville.ca.us, Vaguiar@ecoact.org, Alisa.W@wco.com,
Awade@marin.org, ecoiq@ecoiq.com, BillShire, Anthony.Deriggi@ncal.kaiperm.org,
JudiGregry, BetsyDorn@mindspring.com, reamer@thecia.net, TRASHBUSTR,
dkies@harding.com, mff@igc.apc.org, gruder@engr.wisc.edu,
dkies@corphq1.harding.com, horace.morancie@gsa.gov, acrc@humboldt1.com,
kelmar19@email7.email7.starnetinc.com (Mark Loughmiller), groganp@wdni.com,
case@clm.com, DKies@harding.com, Bobbi_Tousey@owr.ehnr.state.nc.us,
BForan@CIWMB.ca.gov, makower@greenbiz.com (Joel Makower), LVHowe, Gaea2001,
ohioscrap@ecr.com, sharriman@pirnie.com, H2Obabi, madland@taxpayer.net,
WBPratt, EarthGB, Speich@Ardennet.com, Margaret.Gainer@Gainer.com,
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mmcqlm@msn.com, KMIngall@groupwise.san.ci.la.ca.us, Edgarinc@pacbell.net,
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From: "Moore, Robin" <Robin.Moore@ci.sj.ca.us>
To: "'smtp:crra@ucsd.edu'" <crra@ucsd.edu>
Subject: Request for Input
Date: Thu, 25 Mar 1999 13:32:00 -0800
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The City of San Jose, California, will be issuing a RFP for its residential
garbage and recycling collection and processing system in February 2000, and
is currently in the process of making some final decisions relative to the
structure of the proposal.

We are looking for input relative to:
- the use of performance bonds to protect ourselves in the event of
contractor default
- the use of incentive payments to encourage maximum diversion (sale of
recyclables) by the contractors
- the practice of revenue sharing

Performance Bonds
Do you require performance bonds of your contractors?
How much do you require (e.g. enough to cover 4-6 months of operations or
100% of contract amount)?
Have you ever had to execute a performance bond due to contractor default?
Did it work the way you'd expected?
If you don't use performance bonds, can you recommend an effective
alternative?

Incentive Payments:
Do you include incentive payments in your contract compensation structure?
How are they structured?
Do you believe they're necessary or that the same level of diversion would
be achieved through market incentives?

Revenue Sharing:
Do your contractors bear the entire burden of market risk, or do you share
market risk?
Does your "per ton recycled" rate vary with commodity prices?
How is this section of your contract structured?
Would you recommend this practice?

If anyone receiving this message has information on any of these subjects,
we would greatly appreciate your input. Please respond to:

robin.moore@ci.sj.ca.us

or...

Robin Moore
Environmental Services Department
City of San Jose
777 N. First Street, Suite 450
San Jose, CA 95126

(408) 277-5533

Thank you.


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