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amount exceeds this by formulas included in the Rate Manual, the financial impact will be considered as part of the next collection rate review. RATE ADJUSTMENT WITH NO 35-GALLON CUSTOMER INCREASE Service Type Current Rate Rate Increase New Rate 35-Gallon Service $33.80 $0 $33.80 35-Gallon Senior Rate $28.73 $0 $28.73 96-Gallon Service $41.43 $2.97 $45.48 96-Gallon Senior Rate $35.22 $2.53 $38.66 Cubic Yard - Commercial $30.22 $1.18 $31.39 Based on the Subcommittee's recommendation, which is supported by staff, Attachment 1 reflects the above rates and it is recommended for approval. However, should the City Council elect to implement the 3.87% across the board increase, those rates are included as Attachment 5 and the City Council would reflect the use of Attachment 5 as part of its approval of the rate resolution (Attachment 1). Franchise Discussions As indicated above, the City and PGS staff continue to have discussions on the potential of amending the current Franchise or replacing it with a new agreement covering anticipated refuse services. As part of this process, the Subcommittee has been engaged in reviewing two issues that are fundamental to presenting this matter to the full City Council. The first issue includes developing a transparent and effective way of setting, adjusting and monitoring collection rates and as noted above, there is currently agreement on the Rate Manual, which addresses this issue. The second issue pertains to other franchise matters including a Franchise extension beyond June 2019, modifications to business practices including improvements to data systems, which allow a more thorough way of providing use and cost data, and clearer description of anticipated service levels. Staff anticipates meeting with PGS and the Subcommittee in the near future to continue these discussions and upon their completion, the matter will be forwarded to the City Council. As the City Council may recall, a review of the proposed Franchise terms will include a broader discussion regarding a decision either to accept the Franchise amendments that are currently being negotiated or to direct staff to solicit bids through a request for proposal process. The Subcommittee has been engaged in this process and staff anticipates forwarding the material that fully reviews the advantages and disadvantages of both alternatives when more of the issue listed above, and issues related to the commercial recycling program (addressed below) have been more thoroughly resolved. Commercial Recycling Update In 2012, the Alameda County Waste Management Authority (i.e.Stopwaste.org) adopted an ordinance mandating recycling for businesses, multi-family development, and self- haulers (Commercial Recycling Ordinance). The Commercial Recycling Ordinance is divided into multiple implementation phases. Phase I, in general, requires all Alameda County businesses that generate four cubic yards or more of garbage per week and all multi-family residential development with five or more units to segregate recyclable Page 5 of 6