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BACKGROUND <br />The City maintains the Franchise with PGS for the city -wide collection, <br />processing and disposal of refuse and recycling material. As part of this <br />Franchise, PGS may request adjustments to the refuse and recycling collection <br />rates which are subject to approval by the City Council. PGS recently submitted <br />a rate adjustment application and City review is now required. <br />Over the past three rate reviews, the City has utilized consultant services to <br />provide technical assistance with analyzing PGS financial data, refuse collection <br />and recycling practices and other matters related to rate setting and operations. <br />Most recently, in March 2012, the City entered into an agreement with NewPoint <br />to provide technical assistance that resulted in the rate adjustment approved in <br />November 2012. The City amended the NewPoint agreement in November 2012, <br />to provide technical assistance for discussions with PGS regarding franchise <br />amendments, including a new rate setting methodology and process. City staff <br />and the City Council Refuse and Recycling Subcommittee, comprised of Vice - <br />Mayor Cook - Kallio and Councilmember Brown have been engaged in the <br />franchise discussions and they are ongoing. Previous to this work, the City <br />utilized the NewPoint Group to conduct a recycling diversion study. <br />As indicated above, the City has used NewPoint previously and it has been <br />satisfied with its work. Further, the firm has significant experience with assisting <br />with collection and service rate reviews and is familiar with Alameda County wide <br />services and rates and has worked extensively with Stopwaste,Org, which will be <br />beneficial for this process. The services to be provided include continuing to <br />assist staff with its negotiations with PGS regarding collection rates and providing <br />information regarding residential and commercial recycling programs that will <br />assist the City with designing any new programs. The scope of work, which is <br />attached to the recommended amendment, (Attachment 1) includes: <br />• Review financial audits and financial rate material submitted by PGS <br />• Provide assistance regarding potential rate structures and adjustment <br />amounts <br />• Conduct surveys of similar refuse services <br />• Review requested rates for consistency with provided services <br />• Participate in meeting with the City Council Refuse and Recycling <br />subcommittee currently including Vice -Mayor Cook - Kallio and <br />Councilmember Brown <br />• Prepare a report recommending a rate adjustment <br />• Attend meetings with City staff and representatives of PGS to discuss <br />PGS's rate request <br />Page 2 of 3 <br />