01 - Laserfiche WebLink

somewhat of a rolling request that does increase the more implementation is delayed, is for a 12.7% increase. Staff has not yet completed its review but feels it is appropriate and of benefit to the City to act on at least a portion of the request at this time. Mr. Bocian stated the most recent rate adjustment was approved by the Council in 2009, although the commercial aspect was not enacted until the implementation of the new voluntary commercial recycling program. The residential curbside recycling program implemented in 2009 has been quite successful, with the latest information from Stopwaste.org showing a diversion rate of 73%. Staff believes that actual diversion rates at present are closer to 75%. The Council may recall that as part of that action, it also authorized an independent firm to prepare an analysis of PGS operations. While PGS, and the refuse business in general, continues to face inflationary costs that are reflected in the rate adjustment, the overall recommendations of the report were favorable. Staff met with NewPoint and the City Council Refuse and Recycling Subcommittee on several occasions and is currently recommending a 5% increase to rates across the board. Based on information provided PGS, staff supports this portion of the rate adjustment that relates to cost of living increases, increased landfill costs, wage adjustments, miscellaneous expenses, and the 1% franchise fee. Mr. Bocian discussed the proposal's impact on current rates, which would increase by $1.46 per month for 35-gallon and $1.73 for 96-gallon residential customers. NewPoint Group prepared a rate comparison, which demonstrates that PGS is above average in terms of 35-gallon can rates but is quite affordable on its 96-gallon cans. Staff feels this is at least partially due to the transition from larger to smaller sized waste cans and expects to see a more affordable average over time. PGS' commercial rates are approximately 20% above the average. The Council authorized a change to the way the franchise fee is calculated back in 2009, which yielded approximately $214,000 in annual revenue for the City to support environmentally related programs. He noted the fee is still well below the average, which ranges from 8-14%, and said staff feels the increase justified by the additional costs in maintaining the franchise and refuse related information. Mr. Bocian highlighted the outstanding issues relative to PGS' proposal: • Agreement regarding the City's rate setting authority and PGS' obligation to operate within the approved rate. While this has not been a significant issue in the past, it does become more so as the end of the franchise nears; • Examination of the financial records of PGS related companies, whose charges affect PGS' total expenses and pass through to the ratepayer, as part of the City's rate review; • Agreement regarding the applicability of balancing accounts. This would potentially allow for any deficit of expenditures versus revenues collected to be placed into a balancing account, which rate payers are then asked to true up in the next rate term; • Renegotiation of the current 50/50 split on recycling revenues; • Explore the potential of a short term extension of the franchise agreement, should PGS agree to some of the aforementioned provisions requested by the City; • Exploration of the commercial rate structure to assure it reflects the intent of the City's mandatory commercial recycling ordinance. Mr. Bocian stated that staff is recommending the Council adopt the resolution setting forth the rate structure and authorizing the subcommittee to continue negotiations with PGS, approve Amendment#1 to the NewPoint Group agreement for additional services throughout this process, and approve an allocation of $25,000 for legal services related to further negotiations. He reminded the Council that the departure of Mayor Hosterman and Councilmember Sullivan would require the assignment of two new 16