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1 regarding can size. Mr. Boyd explained that under the old contract and rate table, there were many can sizes and provided specifics. Another Council Member questioned if this new model is better than the old one. Mr. Boyd explained the contract differences in detail, and noted that under the past contract, there may have been wide fluctuation without cost control. Under the current contract, costs may go up and be more in line with CIP (consumer price index). Further Council discussion and questions included the JPA's decision - making process for the current contract; if there was any incentive to contain costs; having costs that will be more predictable and stable over time; wrapping up and covering the 2010 collection costs from the old contract with Allied; setting the rates for the new contract; new and more robust service due to increased recycling services; automation; food scrap collection; the shortfall due to known can size reduction, folk may decide to choose smaller cans due to the weekly collection service; the use of the rate stabilization fund as a "rainy day" fund that has been used once in the prior ten years and again this year to mitigate increases (this fund came from the fiscal year 2005 - 2006 overcharges by Allied to the Ox Mountain landfill and Allied paid the City back over time into this fund); projections for collection costs from the past and into the future versus actual revenue shortfalls and future projected revenues; modified collective bargaining process and agreement from Allied to Recology; three collective bargaining agreements that go to 2014 and one that goes to 2013; past work stoppage; Redwood City has acted the as collection agency and billing agent for the last 30 years and bills every two months; and, what was a 29.8 percent increase was reduced to an 18 percent increase through the use of the rate stabilization fund. Mayor Ira opened the public hearing at 8:43 p.m. Public Comment: Guadalupe Ruiz, a resident, made some positive comments about living in the City of Redwood City, and he also spoke in opposition to the rate increase. Liz Wilson, representing her employer, Howard Realty, Inc., said they do rental property management. She expressed her dissatisfaction with the management of the transition with no one being able to opt out and their tenants not having their garbage picked up for one to two weeks, and in one case having all their cans removed altogether. She spoke about Recology being unreachable because their phone circuits were down or busy for a week and how she is still waiting for a response back from them. She questioned the level of preparedness and customer service. Billy James, a resident, said that he is using 20 gallon can and that he is ready and willing to pay up to 18 percent for this service. He spoke about understanding the option to protest and against there being too much anti - government sentiment. Alan Bygones, a resident, said he has no problem with the 18 percent rate increase, but he is bothered by the multiple pickups for different cans and the effect on costs. He calculated a 33 1/3 percent increase due to three different trucks picking up different JOINT CITY COUNCIUREDEVELOPMENT AGENCY BOARD January 10, 2011 MEETING MINUTES PAGE 7 MINUTE BOOK NO. 63 Page No. 251