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Regular City Council Meeting Monday, November 14, 2016 Page 19 Mayor Roe noted that his observation was that the remainder of the body was not considering a 4-5 year timeframe. Councilmember McGehee stated her preference for a three year with two-year op- tion; and Councilmember Etten stated his preference for a two- to three-year lease term. If possible, Mayor Roe asked staff to bring this discussion forward, with options and associated numbers at the December meeting; with Councilmember Laliberte reminding staff to include other city needs already identified as part of that con- versation. b.Agreement for Comprehensive Recycling Services Public Works Director Marc Culver and Environmental Specialist Ryan Johnson provided an update on negotiations since their last presentation and further direc- tion from the City Council in October. Mr. Culver noted this update was detailed in the RCA of today’s date. Mr. Culver reported on further discussions internally at Eureka and with city staff including floor prices related to revenue sharing and a termination clause. The options presented through negotiations were compared to the original Eureka pro- posal and additional costs to the base rate higher than the 2016 base rate. Repre- sentatives of Eureka were present in the audience for questions or comments at the discretion of the City Council. Mr. Culver directed the City Council to the chart on page 3, line 45 of the RCA for a quick comparison of the proposed op- tion compared to the existing Eureka agreement. Mr. Culver also directed atten- tion to revenue sharing results from the current three-year contract from 2014 through 2016. Mr. Culver concluded his presentation by reviewing the risks with either option, seeking direction from the City Council for staff on either of two proposals as outlined. At the request of Mayor Roe, Mr. Culver referenced a draft contract prepared for either option, with the original proposal represented in Attachment C and Option 2 provided in Attachment E. Discussion ensued regarding current Recycling Fund reserves (estimated by staff at $90,000); total possible annual loss in revenue sharing, with 2015 used as an example showing an additional cost to the city would have been approximately $22,000; and the length of the contract proposed under Option 2. Councilmember McGehee stated her preference for Option 1 or the original pro- posal, opining there was obviously some risk but based on the last five years’ ex- perience, it would balance out.