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Regular City Council Meeting Monday,October 14,2013 Page 20 Mayor Roe recessed the meeting at approximately 7:56 p.m. and reconvened at approximately 8:05 p.m. b. Approve Contract with Eureka Recycling for Recycling Services Public Works Director Duane Schwartz briefly reviewed this item as detailed in the RCA dated October 14, 2013; and provided a review of contract negotiations since the last City Council directive was provided to staff. Mr. Schwartz addressed adjustments made to the original schedule and potential for reconsideration and the late start in negotiations with Eureka; and resulting re- sponse for three (3) options provided by Eureka, mostly concerning their meeting the January 1, 2014 rollout timeframe and risks to Eureka in determining cart size preferences for residents and minimizing their cost impacts. As noted in the RCA, Mr. Schwartz advised that any and all of the three options proposed by Eu- reka still remained below the costs of the second bid received by the City. Mr. Schwartz reviewed the preliminary financial analysis of the three options provided by Finance Director Chris Miller, also outlined in the RCA. Mr. Schwartz advised that another area having received considerable discussion during negotiations was the "termination clause (lines 208-209) of the draft agreement (Attachment A) with staff recommendation in conjunction with the City Attorney, to delete "or without" from lines 208 and 209 respectively so the first sentence would indicate that the agreement may be terminated at any time by the City "with cause..."; and to delete the entire shaded area indicated on lines 214 — 217 of the draft. Related to the latter portion of the recommendation, Mr. Schwartz advised that the review committee felt that a longer term to amortize carts was indicated given their expected 10 year life expectancy versus their ad- vertized 5 year life expectancy; and that the cost should therefore be realized within the first three years. At the request of Councilmember Willmus, City Attorney Mark Gaughan opined that based on negotiations to-date, if Eureka did not meet the February 17, 2014 rollout, unless there was a valid reason for them not doing so, it could be deemed a material breach of contract. At the request of Councilmember Laliberte, who opined that there were a number of people who would not respond to a survey, and whether Eureka would then supply a pre-determined cart size, Mr. Schwartz suggested that representatives of Eureka Recycling in the audience respond to that question. Christopher Goodwin, Eureka and Tim Brownsell, CEO of Eureka Recy- cling Mr. Goodwin noted that a survey was sent by postcard asking residents to mail it back to Eureka, as well as a bin note, providing 2-3 opportunities to receive the information. Based on the responses received, Mr. Goodwin advised that Eureka