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THE CITY OF w S 2 pL£ASANTONC CITY COUNCIL AGENDA REPORT September 2, 2014 City Manager TITLE: APPROVAL OF AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH CROWE HORWATH LLP TO CONDUCT A REFUSE AND RECYCLING COLLECTION RATE STUDY SUMMARY The City maintains a refuse collection franchise agreement (Franchise) with Pleasanton Garbage Service, Inc., (PGS) to provide refuse and recycling collection and processing services throughout the City. PGS has submitted an application for a 5.47% rate adjustment effective January 1, 2015. The last rate adjustment was 7.8% that went into effect April 1, 2014. In March 2012 the City contracted with the Newpoint Group for refuse rate analysis and the City maintained that relationship until 2013 when it approved an assignment of the contract to Crowe Horwath LLP. However, the principles with the Newpoint Group continue to be engaged with Crowe Horwath LLP; and therefore, there has not been any change in the quality of services provided. Because of the overall quality of work provided by the principle consultants, staff is recommending Crowe Horwath LLP be retained for this current rate application. RECOMMENDATION 1. Approve the Fourth Amendment (Attachment 1) to the Professional Services Agreement with Crowe Horwath LLP to conduct a 2015 Rate Review of Pleasanton Garbage Services, Inc., for an amount not to exceed $34,700. 2. Authorize funding from the General Fund Contingency in the amount of $34,700 with the understanding that PGS will reimburse the City for these services. FINANCIAL STATEMENT The full cost of this work will be paid for initially with funding from the General Fund Contingency in the amount of $34,700. However, PGS has agreed to include the funding as part of its rate base and to reimburse the City the full amount of these expenses. Page 1 of 3