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THE CITY OF 1 5 pLEASANTON. CITY COUNCIL AGENDA REPORT March 18, 2014 Assistant City Manager TITLE: ADOPT A RESOLUTION ESTABLISHING FIXED AND UNIFORM REFUSE COLLECTION AND RECYCLING SERVICE RATES FOR RESIDENTIAL AND COMMERCIAL CUSTOMERS SUM_ MARY The City maintains an exclusive refuse collection and recycling franchise agreement (Franchise) with Pleasanton Garbage Service (PGS) to provide all residential and commercial collection services, including the 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 (Crowe Horwath LLP) and the City Council Refuse and Recycling subcommittee (Subcommittee) comprised of Councilmembers Brown and Cook-Kallio. As an outcome of this review, the parties have come to agreement regarding a supportable adjustment. However, the parties have not yet come to agreement on Franchise amendments that address underlying fundamental differences between the parties regarding future rate calculations and as such, staff is recommending an amendment to the existing agreement with Crowe Horwath LLP to provide additional services it an attempt to resolve the parties differences. As a result of this later situation, the City Council may elect to direct staff to begin preparing material required for the City to conduct a competitive process for a refuse provider after the PGS Franchise expires in June 2019. RECOMMENDATION 1. Approve the attached resolution (Attachment 1) establishing fixed and uniform refuse and recycling rates for residential and commercial customers effective April 1, 2014 and authorize the Subcommittee to continue discussing outstanding franchise and rate related issues. 2. Approve Amendment #3 to the Crowe Horwath. LLP Professional Services Agreement (Attachment 4) in an amount not to exceed $15,000. 3. Direct staff to begin reviewing documentation required to conduct a competitive bid for a refuse and recycling provider after the Franchise expires in June 2019, while staff continues negotiating with PGS regarding franchise modifications. FINANCIAL STATEMENT The City pays for all of its refuse services and as a result, these costs for City facilities will increase by 7.80% or approximately $15,000 per year Also, if staff is directed to continue negotiations with PGS, the additional $15,000 for amendment #3 to the Crowe Horwath, LLP Professional Services Agreement will be allocated from the General Fund Contingency.