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Implications: This option could result in loss of Measure D funds unless the City establishes its own organics program by July 1, 2014 at a charge no greater than standard refuse collection fees and provide each commercial account with three hours per year of outreach regarding recycling services. 3. Opt-out temporarily and plan to Opt-in at a later date City Council Action Required: Adoption of a resolution prior to the end of 2013 indicating its intent to opt-out and then adopt an opt-in resolution prior to July 1, 2014. Implications: This option requires approval from the StopWaste Enforcement Officer to opt-in after January 1, 2014, however this approval may not be unreasonably withheld. This option provides time for the City, PGS and StopWaste to establish reasonable expectations regarding program services and fees. Staff anticipates this option will include discussions with StopWaste regarding the granting of a compliance schedule waiver that includes a later start date that is more realistic for the City, PGS and local businesses and a discussion regarding the issues related to implementation in the downtown and other districts. 4. Opt-in but request a waiver/delay of certain portions of the ordinance City Council Action Required: None. Implications: After January 1, 2014, staff would submit an application to StopWaste requesting that it consider a compliance schedule waiver to certain portions of the ordinance such as implementing at a later date or eliminating food scrap requirements from those businesses that do not have the space to accommodate containers and enclosures to handle food scraps appropriately. In the event the waiver is denied, the City would be subject to the ordinance effective July 1, 2014. A compliance schedule waiver is not guaranteed. In considering the above options, staff is of the opinion that option 3 calling for the City Council to adopt a resolution opting out of the ordinance with the intent of opting in by July 1, 2014 is the most appropriate action at this time. Staff anticipates that this option will also include discussion with StopWaste regarding a waiver to the timeline and/or scope of coverage. The later issue is important in that the infrastructure is not in place to help small, large and fast food businesses and their customers comply with these requirements without heavy contamination of sorted compostable material. In addition, staff has considerable concerns regarding food scrap recycling in areas of the community where there are not adequate enclosures or other facilities to handle this material. This timeline will allow staff to address this matter more fully with PGS. As mentioned earlier, failure to opt-in or obtain a waiver by July 1, 2014 could lead to loss of all or a portion of the City's Measure D funding, estimated at about $200,000 to $250,000 annually, unless the City implements its own program inclusive of specific outreach hours for each business. If the Council is inclined to opt-in to the program, Page 3 of 5