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additional recyclable material. However, the current value for recyclables is at an all time low and as a result, if this current market continues, revenues may not meet targets. As part of the rate and service discussions, PGS requested an additional rate increase to act as a program contingency to protect against volatility in recyclable derived revenue and the uncertainty of whether residents will select either the Standard or Extra Capacity Service which impacts rates. However, because staff anticipates beginning discussion with PGS in summer of 2010 for the any future rate adjustment after March 30, 2010, the Subcommittee is not recommending that portion of the rate request. In addition, staff is exploring the potential for utilizing Measure D funding to offset the cost of the program. If allowable and if sufficient funding is available, this may result in a rate reserve to offset future costs. It should be noted that the proposed new recycling programs are not mandatory and are not part of PGS's rate proposal and as a result, the Council is not obligated under any terms of the franchise or regulatory agency, to make the changes. However, the City Council has endorsed the 75% diversion rate and the Subcommittee working in cooperation with the Alameda County Waste Management Authority has determined that these programs represent a significant and most effective step in meeting the target. Construction and Demolition Debris In addition to the above, PGS and the City have agreed to finalize a C&D Ordinance that will establish standards and procedures for the recycling of C&D material. This action has been a priority of the City for some time and is required by the Alameda County Waste Management Authority as a requisite to receive grants from its import mitigation fund. As a result, staff intends to present the proposed ordinance to the Subcommittee and the City Council by June 30, 2009. Submitted by: :' := ~ ,; Steven Bocian Assistant City Manager Fiscal Review: ~: \ \! ~~_ _ , David Culver Director of Finance Appro~ved~/~y: ~" ~ ~~ Nelson Fialho City Manager Attachments: 1. Recommended Resolution Setting Forth Fixed and Uniform Interim/Partial Refuse Collection and Recycling Service Rates for Residential and Commercial Customers 2. Summary Residential and Commercial Rate Tables 3. Comparison of all Proposed and Existing Service Rates 4. Summary of PGS Rate Adjustment Request 5. Refuse Service Rate Survey conducted in April by Stop Waste.Org Page 9 of 9