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ATTACHMENT 3 <br /> 4 \ Crowe Horvath. <br /> Crowe Horwath LLP <br /> Independent Member Crowe❑orwath International <br /> 575 Market Street,Suite 3300 <br /> San Francisco.California 94105-5829 <br /> Tel 415576.1101) <br /> Fax 415.576.1110 <br /> www.crowehorwath.com <br /> December 2, 2014 <br /> Mr. Steven Bocian <br /> Assistant City Manager <br /> City of Pleasanton <br /> 123 Main Street <br /> Pleasanton, CA 94566 <br /> Subject: 2015 Rate Review of Pleasanton Garbage Service, Inc. <br /> Crowe Horwath (Crowe) has completed its review of Pleasanton Garbage Service, Inc.'s (PGS)calendar <br /> year 2015 rate application. The City contracted with Crowe to make a recommendation for changes in <br /> refuse collection rates effective January 1, 2015.This letter report documents results of our review is <br /> organized as follows: <br /> 1. Summary <br /> 2. Background of Review <br /> 3. Scope of Review <br /> 4. Rate Setting Adjustments <br /> 5. Recommended Rate Change <br /> 6. Comparative Rate Survey. <br /> 1.Summary <br /> Upon reviewing the 2015 rate application and supporting documentation, Crowe recommends a rate <br /> increase of 3.26 percent effective January 1, 2015. This compares to PGS' requested calendar year 2015 <br /> rate increase of 5.47 percent. Current and recommended residential rates are shown in Table 1 below: <br /> Table 1 <br /> Pleasanton Garbage Service <br /> Residential Rates <br /> (With a 3.26 Percent Rate Increase) <br /> Crowe <br /> PGS Crowe Recommended <br /> Current Requested Recommended Absolute <br /> Service Level (2014) (2015, 5.47%) (2015) Change (2015) <br /> 35-Gallon $32.98 $34.78 $34.06 $1.08 <br /> 96-Gallon $39.13 $41.27 $40.41 $1.28 <br /> 2. Background of Review <br /> The City and PGS entered into a twenty(20)year franchise agreement on May 16, 1989(Refuse <br /> Collection Agreement). The City extended the term of the Refuse Collection Agreement an additional ten <br /> (10)years. The current term ends June 30, 2019. <br />