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Councilmember Cook-Kallio noted that PGS has provided more financial information this time than last and said it is her understanding that the consultants are more comfortable moving forward with a 7.8% increase. Mr. Bocian confirmed, though only in the short term. Staff is not comfortable moving forward with an extension of the franchise without a broader range of financial information. Councilmember Narum noted that most cities charge a vastly different rate for 32-gallon versus 96- gallon service, which would seem to encourage users in the direction of the smaller bin. She asked whether there is a particular philosophy behind setting the rates fairly evenly as is done here. Mr. Bocian explained that there is a set cost to provide the service, regardless of bin size. While the city chose to keep the rates fairly balanced as it introduced the curbside recycling program in 2008-2009, it is certainly appropriate to look at shifting the philosophy more towards what it costs to provide the overall service. Councilmember Cook-Kallio asked and Mr. Bocian confirmed that Dublin offers curbside recycling. Mayor Thorne invited public comment. Bob Molinaro, General Manager of PGS, thanked staff and the subcommittee for supporting the 7.8% increase. Councilmember Brown asked him to comment on the discussion of Dublin rates versus Pleasanton rates. Mr. Molinaro explained that Dublin rates are charged per capture. The majority of Dublin service is commercial service, which tends to be more frequent and significantly helps to subsidize the rates for residential users. Mayor Thorne closed public comment. Councilmember Cook-Kallio moved to accept the staff recommendation. She noted that Mr. Molinaro and his family live in Pleasanton and that PGS has been wonderful in providing extra services at community events. She said she truly appreciates a company whose owners live in the town that it serves. Mayor Thorne said PGS is a part of Pleasanton's history and hoped they could reach a resolution on the outstanding issues. Councilmember Narum said she found PGS' service to be impeccable. Councilmember Brown encouraged the public to utilize their recycling cans and minimize landfill waste as much as possible. She said she would like to see future rate negotiations focus on more of a recycling oriented structure with penalties for larger waste sources. Councilmember Narum agreed. MOTION: It was m/s by Cook-Kallio/Pentin to waive full reading and adopt Resolution No. 14-667 establishing fixed and uniform refuse and recycling rates for residential and commercial customers effective April 1, 2014; authorize the subcommittee to continue discussing outstanding franchise and rate related issues; and approved amendment No. 3 to the Crowe Horwath LLP Professional Services Agreement. Motion carried by the following vote: Ayes: Councilmembers Brown, Cook-Kallio, Narum, Pentin, Mayor Thorne Noes: None Absent: None City Council Minutes Page 17 of 18 March 18, 2014