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THE CITY OF 11 1111 CITY COUNCIL AGENDA REPORT PL EASANTONo December 16, 2014 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) 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 provided 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 Councilmember Brown and former councilmember Cheryl Cook-Kallio. As an outcome of that review, the parties have come to agreement regarding a supportable adjustment. Based on the Subcommittee's recommendation, two options are being provided for the rate adjustment: one is an "across the board" increase of 3.26%, and the second an increase variable rate adjustment weighted slightly so that residential customers with 35-gallon refuse carts receive an increase of 2.50% and those with 96-gallon carts receive an increase of 5.88%. If approved, the rates will be in effect for at least the 2015 calendar year. This report also provides an update on the status of other refuse and recycling related matters. RECOMMENDATION Approve the attached resolution (Attachment 1) establishing fixed and uniform refuse and recycling rates for residential and commercial customers effective January 1, 2015 with an "across the board" increase of 3.26%. FINANCIAL STATEMENT The City pays for all of its refuse services and as a result, collection costs for City facilities will increase by 3.26% or approximately $6,000 per year.