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Utilize the rate model developed in the prior rate review to recalculate the return <br />on equity in accordance with the requirements of the Agreement. <br />Prepare and submit a brief memorandum to the City summarizing the <br />conclusions of previous analysis and recommend issues to be negotiated with <br />PGS. <br />Attend up to two (2) meetings with City staff to discuss the results of the review <br />and clarify the negotiating points. <br />Facilitate meetings with City staff and representatives of PGS to evaluate the <br />results of the Rate Review, discuss the proposed rates and provide necessary <br />support and documentation to substantiate the rate review findings. <br />In addition to services related to the rate review, R3 has proposed to provide technical <br />services related to exploring enhanced or modified recycling services to assist the City <br />in reaching its goal of 75% waste diversion as established by the Alameda County <br />Waste Management Authority. Staff anticipates enhanced or modified recycling <br />services will be discussed as part of this rate review process. <br />As indicated previously, fees for this work is $45,000 plus reimbursable expenses for <br />mileage, unusual duplications etc. Staff has been satisfied with the services provide by <br />R3 previously and its knowledge of the PGS refuse collection franchise and rate <br />structure will facilitate a focused rate review process. R3 is a leader in the refuse and <br />recycling field and has provided a range of refuse and recycling services to Northern <br />California cities including Dublin and San Ramon. The City conducted a competitive <br />selection process prior to the 2004 contract and determined R3 was the most qualified <br />firm. Because its fees have not adjusted from those charged in 2004, staff determined <br />that it is competitive and well qualified. As a result, staff is recommending approval of <br />the attached Amendment #2. <br />Submitted by: Fiscal Review: Approved by: <br />~~, ~ ~-_ <br />Steven Bocian David P. Culver Ne son Fialho <br />Assistant City Manager Finance Director City Manager <br />Attachments: <br />1. Recommended Second Amendment to Agreement for Consultant Services <br />2. Agreement for Consultant Services date April 20, 2004 <br />Page 3 of 3 <br />