MMBC has offered collection incentives to allow those collectors currently providing PPP collection services to continue to do so, subject to the terms and conditions set by MMBC so that it can meet its obligations to the Province of BC and to the stewards that have selected MMBC to be their agency.
MMBC understands that for some collectors, particularly local governments, becoming a contractor is a new role that may feel unfamiliar and uncertain. While the Master Services Agreement (MSA) and Statements of Work are legal documents and, as such, contain legal language and requirements, MMBC will be approaching its contractual relationships with collectors as long-term partnerships which must, to be effective, be based on dialogue and good business relationships to resolve any issues that may arise. To ensure that its contractors understand MMBC’s intentions, MMBC will be adding a statement to the MSA regarding good business relationships.
As an example of this approach, MMBC offers the following description of the process leading to a Service Level Failure Credit with respect to the 3% threshold for non-PPP. In general terms, this process would involve notification of the results of composition audits that identified more than 3% non-PPP, followed by additional audits after a specified period of time to provide an opportunity for improvement. If improvement is not identified through the subsequent audits, MMBC would require the development and implementation of a remediation plan, followed by additional audits after a specified period of time. If improvement is not identified, MMBC would provide written notice that the next composition audit identifying more than 3% non-PPP may be the basis for applying the service level failure credit. It is expected that the sequence of activities described above would have the effect of deferring service level failure credits for approximately the first year of operations.
As noted in the MSA and SOWs, these are sample documents which must be completed specific to each collector responding to the collection incentive by September 16, 2013. Of particular note, the following MSA and SOW sections can be customized to reflect collector-specific circumstances based on discussions directly between MMBC and each collector:
- MSA Section 2.2 Changes: MMBC will consider a mechanism for the contractor to raise a change request.
- MSA Section 12 Insurance and Performance Bond: MMBC will discuss the Insurance Requirements in Schedule 12.1 with individual Contractors upon request.
- MSA Section 13 Termination: Should a local government wish to terminate for reasons beyond Section 13.3, Termination by Contractor for Cause, MMBC will discuss with the local government who wishes to have an exit provision negotiated.
- Curbside Collection SOW Section 2.1.4 Containers: MMBC will discuss the requirement to provide containers with local governments.
We note that some local governments have requested extensions to the September 16, 2013 deadline for responding to the offer of collection incentives while others have inquired about the feasibility of a conditional acceptance.
We understand the challenges of the sequence of events leading to May 19, 2014 for all parties: collectors, post-collection service providers, stewards and MMBC. However, given stewards’ regulatory obligation to assume responsibility for PPP as of May 19, 2014 and the need to issue an RFP for post-collection services following the September 16 deadline, MMBC is reconfirming the September 16 deadline for collector responses. Responses must be unconditional in order to be the basis for a contract between MMBC and the collector and for the collector to be included in MMBC’s post-collection RFP.
A collector that is not listed as an MMBC collector in the post-collection RFP issued in September/October 2013 would not be able to accept the collection incentives and execute a contract to be an MMBC collector until the next post-collection RFP is issued. As post-collection service provider contracts are expected to be 5 to 7 years in length, the next post-collection RFP will be issued in 2018 or 2020 and the effective date of these post-collection contracts will be in 2019 or 2021.
MMBC’s implementation team is available to respond to your questions and discuss customization of the MSA and relevant SOWs for your particular circumstances. Please contact us at:
- Telephone: MMBC at (604) 620-7540