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BACKGROUND The City maintains the Franchise with PGS for the City-wide collection, processing and disposal of refuse and recycling material. As part of this Franchise, PGS may request adjustments to the refuse and recycling collection rates which are subject to approval by the City Council. PGS recently submitted a rate adjustment application and City review is now required. Over the past three rate reviews, the City has utilized consultant services to provide technical assistance with analyzing PGS financial data, refuse collection and recycling practices and other matters related to rate setting and operations. Most recently, in March 2012, the City entered into an agreement with the NewPoint Group to provide technical assistance that resulted in the rate adjustment approved in November 2012. The City amended the NewPoint agreement in November 2012 to provide technical assistance for discussions with PGS regarding franchise amendments, including a new rate setting methodology and process. Previous to this work, the City utilized the NewPoint Group to conduct a recycling diversion study. As mentioned previously, in 2013 the City approved an assignment of the agreement with the NewPoint Group to Crowe Horwath LLP. As indicated above, the City has used Crowe Horwath LLP previously and it has been satisfied with its work. Further, the firm has significant experience with collection and service rate reviews, is familiar with Alameda County wide services and rates, and has worked extensively with Stopwaste.Org, which will be beneficial for this process. The services to be provided include continuing to assist staff with its negotiations with PGS regarding collection rates and providing information regarding residential and commercial recycling programs that will assist the City with designing any new programs. The scope of work, which is attached to the recommended amendment, (Attachment 1) includes: • Review financial audits and financial rate material submitted by PGS; • Provide assistance regarding potential rate structures and adjustment amounts; • Conduct surveys of similar refuse services; • Review requested rates for consistency with provided services; • Participate in meeting with the City Council Refuse and Recycling subcommittee currently including Councilmember Cheryl Cook-Kallio and Councilmember Karla Brown; • Prepare a report recommending a rate adjustment; and ▪ Attend meetings with City staff and representatives of PGS to discuss PGS's rate request. In addition to the above, staff has been meeting with PGS to discuss an amendment to the existing Franchise and as an outcome of those meetings, Page 2 of 3