15 - Laserfiche WebLink

• Increase the City franchise fee to be more consistent with those in other communities to help offset the impact of refuse services conducted in the community; • Create a service rate adjustment system based on clearly identifiable regional cost indexes, thus replacing negotiated service rate settlements; • Eliminate all practices related to cost carryovers from year to year that place the city customers at risk of absorbing these unexpected costs; • Increase the transparency of related party financial interactions; and, • Agree on a reasonable term length for a new agreement. DISCUSSION Staff and PGS have negotiated an agreement that meets all the above goals. A summary of the key provisions are as follows: Key Provisions of the Agreement Approved by PGS The existing agreement has been rewritten and provisions made consistent with similar agreements in Dublin and Livermore. Among other changes the Agreement contains the following major provisions. • The Agreement would commence on July 1, 2018 (one year prior to the expiration of the current Franchise) and terminate in June 30, 2028. • PGS will provide residential curbside bulky waste pick up (three times annually subject to weight and size limits) and used motor oil and filter collection. • PGS will install a new state of the art management information system sufficient to meet required reporting requirements, address customer inquiries and assist staff with data collection and reporting. • City Franchise Fee amount is increased from 2 percent to approximately 4 percent or more. • Service rate adjustment reviews will occur based on an index or, under unusual conditions, a cost-based basis. The annual index based adjustment involves use of various cost adjustment factors (such as percentage change in the consumer price index and percentage change in approved tipping fees) to calculate adjusted service rates. In the event of uncontrollable circumstances (defined in the Agreement) a cost based adjustment, involving a detailed review of PGS's and its related parties' actual costs of service and determination of adjusted rates to reflect projected costs. If a cost based adjustment is used, which will be infrequent considering the specific uncontrollable circumstances that must exist, the adjustment may not exceed 6%. Any annual rate adjustment is subject to City Council review and approval. • Rates will not be adjusted to compensate PGS for operating expense increases in prior years that are carried forward into a subsequent year. • PGS will establish a recycling and organics diversion public education, technical assistance and customer service programs including one additional dedicated full time position. • The City has the right to conduct two reviews of PGS' performance and three audits of its billing and payment of monies due to the City during the term of the Agreement to verify that PGS has fulfilled its obligations under the Agreement. PGS is also required to conduct self-reviews/audits and to submit the results to the City for its review. Page 3of5