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fundamental matters, including length of term, deficit recovery and its relations with related parties, the Subcommittee indicated its preference to recommend that the City Council direct staff to begin preparation of material required to conduct a completive bid process to select a franchise hauler and that staff end negotiations with PGS regarding a franchise extension. Since that time, staff has had discussion with PGS and PGS has just recently expressed a willingness to reengage in negotiations and to further discuss concerns expressed by the City. As such, staff sees the benefit of beginning the work required to conduct a competitive bid process and continuing negotiations with PGS regarding an amended franchise. However, as indicated in November 2012, assuming the City Council has an interest in furthering negotiations with PGS, staff is of the opinion that there must be timely a.nd substantive progress with key areas as it is not beneficial to create the appearance that the City is negotiating with PGS at the same time that it's beginning to circulate material on a competitive bidding process. Amendment_to_Agreement with_.Crowe-Horwath LLP In November 2012, as part of the PGS rate review, the Council approved an amendment to the agreement with NewPoint Group, Inc. (now Crowe Horwath LLP) and an agreement for special outside legal counsel to provide technical assistance with the Franchise amendment discussions. Since that time, Crowe Horwatth has been fully engaged in the process and to date, at total of $15,345 of the $30,000 available for this effort have been spent. While the City entered into an agreement for legal services, to date, no costs have been incurred. Should the City Council determine that staff should continue its negotiations with PGS, staff is recommending that it appropriate $15,000 from the City's Contingency Fund for the purpose of receiving technical assistance from Crowe Horwath (Attachment 4). Note that PGS will reimburse the City for these costs which will be an allowable PGS expense. Submitted by: Reviewed by: Approved by Steven Bocian Emily Wagner Nelson Fialho Assistant City Manager Director of Finance City Manager Attachments: 1. Recommended Resolution Setting Forth Fixed and Uniform Interim/Partial Refuse Collection and Recycling Service Rates for Residential and Commercial Customers 2. Comparison of Current and Recommended PGS Refuse and Recycling Rates 3. Crowe Horwath Review of the Pleasanton Garbage Service, Inc rate application 4. Third Amendment to Agreement with Crowe Horwath LLP Page 4 of 4