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Pleasanton has committed to attempting to establish an organics program that meets the county's requirements and is currently working with PGS and the county to develop something suitable. Mr. Bocian presented the staff recommendation, requesting that the Council approve either across the board refuse and recycling rate adjustment of 3.26%, as described in Attachment 1, or the variable rate adjustment described in Attachment 2. Councilmember Narum asked when, under the Franchise Agreement, PGS could request its next rate increase. Mr. Bocian said he would expect to receive another request next summer with it to take effect January 1, 2016. Assuming that the city and PGS do move forward with an amended agreement, PGS would move more towards a model that examines rates annually as opposed to the 3 to 4 year intervals that have been typical in recent years. Councilmember Brown requested and receive confirmation that PGS also services the City of Dublin, which charges $21 for its smaller bins and $56.40 for the 96-gallon carts. She also asked if the city would be responsible for a true-up or deficit in the event that PGS were to demand that all customers move to the smaller and less expensive bin. Mr. Bocian explains that the variable rate proposal assumes a 5% migration from the 96 to 35-gallon carts, which staff feels is appropriate. He said that anything more than that would require further discussion and that staff has not made any representation to PGS that the city would approve the type of shift she described. Councilmember Brown asked if PGS indicated a preference between the fixed and variable rate adjustment. Mr. Bocian said PGS was strongly in favor of the fixed rate adjustment for the reasons already described—contamination, migration and the skewed cost basis. Gordon Galvin, PGS, confirmed that PGS prefers the fixed rate adjustment for all the reasons enumerated. He clarified that ABI, not PGS, serves the City of Dublin although did acknowledge that some owners of PGS do also own a portion of ABI. He thanked and commended staff for their work on the issues addressed in the amendment, stating that it is no simple feat to change an agreement that has been in place for over 40 years. Mayor Thorne opened the item for public comment. Monica Graham, Hirsch Investment Properties, said she represents over 29 commercial owners and operators within Pleasanton concerned with the current refuse and recycling program. She said she was taken aback to learn of the city's efforts to amend and extend what is an outdated agreement and that many consumers feel it is past time to introduce new blood or more competitive rates and comprehensive programs to the city. She stated that Pleasanton's commercial rates exceed those of Livermore, Dublin and San Ramon which is not advantageous for the city when competing for commercial tenants and means that fewer dollars go towards investing in the maintenance and improvement of existing properties. She stated that ratepayers have borne some rather significant rate increases over the years, starting with a 12% hike in 2009, without the benefit of any meaningful change in service. She said she would like to expand the options for mixed recycling bins, specifically a 3-yard bin, noting that the number of 96-gallon carts needed to properly service a larger commercial office property often to fit within a property's limited trash enclosures. She cited a lack of effective communication between PGS and commercial customers and suggested that some sort of informational packet outlining the programs and related costs would be extremely helpful. She said she would also like the ability to offer free e-waste recycling to her tenants within the business park and that City Council Minutes Page 15 of 18 Dec 16,2014