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BACKGROUND Mandatory recycling in Pleasanton has been in effect since March 1, 2013 for businesses and institutions with four (4) or more cubic yards of garbage service as well as multi-family properties with five (5) or more units In December 2015, the City Council approved mixed recycling rates for commercial and multifamily building properties which allowed PGS to provide a weekly service for mixed recycling which included a free 96 gallon cart, with each additional cart at a monthly cost of$43 03 for once per week collection In January 2016, PGS began a pilot program for commercial organics collection Thirty (30) commercial accounts participated in the pilot program In February 2016, the City Council voted to opt into Phase 2 of the Alameda County Waste Management Authority's Mandatory Recycling Ordinance, thus requiring PGS to formalize the pilot program and present a proposal to the City regarding pricing for this new organic collection service for commercial and multifamily building properties Phase 2 of the Mandatory Recycling Ordinance will begin in Pleasanton on January 1, 2017 to add all businesses and institutions (regardless of garbage service volume) to the list of Covered Accounts and add requirements to collect food scraps and compostable paper separately from garbage DISCUSSION PGS provided the City with a proposed cost for the collection of commercial organics which would provide commercial accounts a discount on the rates for mixed recycling and organic services at 25% per cubic yard for metal container bin For accounts that use the 96 gallon cart for mixed recycling a current program is already in place in which the first 96 gallon cart is provided free and any additional carts at the monthly rate of $43 03 per cart, this will remain in place The 96 gallon cart for organics collection will be provided at a 25% discount based upon on the current rate for solid waste 1 Offering discounted rates is a practice often implemented by garbage collection companies and Cities to provide incentives to recycle Pleasanton commercial customers have also requested that such an incentive be provided The discounted rates will go into effect on December 26, 2016 and reflected in the first billing to commercial accounts on January 25, 2017 ' Since separate collection of organics was not required it was treated as solid waste with a rate of$81 99 for a 96 gallon cart Page 2 of 4