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THE CITY OF �( • "' CITY COUNCIL AGENDA REPORT pLEASANTON. November 27, 2012 Assistant City Manager TITLE: ADOPT A RESOLUTION ESTABLISHING FIXED AND UNIFORM REFUSE COLLECTION AND RECYCLING SERVICE RATES FOR RESIDENTIAL AND COMMERCIAL CUSTOMERS SUMMARY The City maintains an exclusive refuse collection and recycling franchise agreement (Franchise) with Pleasanton Garbage Service (PGS). PGS provides all residential and commercial collection services, including the separate collection of refuse, recyclable material, green waste and food scraps from residences and commercial accounts. In accordance with the terms of the Franchise, PGS may request adjustments to refuse collection and recycling service rates if it provides detailed information supporting the adjustment. PGS submitted a rate proposal and it has been reviewed by staff, the City's consultant (NewPoint Group, Inc.) and the City Council Refuse and Recycling subcommittee (Subcommittee) comprised of Mayor Hosterman and Councilmember Sullivan. Based on this review, the parties have not come to agreement regarding a supportable adjustment. However, there is agreement that some adjustment is warranted and as such, this report recommends a rate adjustment. In addition, staff and PGS expect that over the coming months they will continue their review of rates and franchise issues with the goal of resolving all outstanding issues within 9 months. This subsequent review may result in modifications to the existing franchise agreement, an amended rate structure, a franchise extension, and or other modifications. To assist with the review, staff is recommending a $45,000 funding appropriation to cover an amendment to the agreement with NewPoint Group and for special outside legal counsel to assist with franchise review. RECOMMENDATION 1. Approve the attached resolution (Attachment 1) establishing fixed and uniform refuse and recycling rates for residential and commercial customers and authorize the Subcommittee to continue discussing outstanding franchise and rate related issues. 2. Approve Amendment #1 to the NewPoint Group, Inc. Professional Services Agreement (Attachment 2) in an amount not to exceed $20,000. 3. Appropriate $45,000 from the General Fund Contingency to cover the cost of the NewPoint Group Amendment #1 and special outside legal counsel. A total of $20,000 to all of these funds monies will be reimbursed to the City by PGS through the rate base. FINANCIAL STATEMENT The City pays for all of its refuse services and as a result, these costs for City facilities will increase by 5% or approximately $14,000 per year.