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THE CITY OF 21 .°~{° '°°�� '` � CITY COUNCIL AGENDA REPORT pLEASANTON. December 15, 2015 City Manager TITLE: APPROVE INTERIM YEAR 2016 RATE ADJUSTMENT APPLICATION BY PLEASANTON GARBAGE SERVICE 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 its refuse collection and recycling service rates provided it submits detailed information supporting the adjustment. PGS submitted a rate proposal and it has been reviewed by staff, the City's consultant, Crowe Horwath LLP (Crowe Horwath), and the City Council Refuse and Recycling Subcommittee (Subcommittee) comprised of Councilmembers Brown and Pentin. As an outcome of that review, the parties have come to agreement on an "across the board" adjustment of 3.87%. However, as part of its review, the Subcommittee recommended not to increase the rates of residential customers with 35- gallon can service. This recommendation results in an increase of 9.77% for residential customers with 96-gallon can service and a 3.87% increase for all other customers, excluding residential customers with 35-gallon service. As an alternative, the City Council could consider the "across the board" increase included in the PGS rate application. If approved, the rates would go into effect on January 1, 2016 and remain for the 2016 calendar year. This report also provides an update on the status of franchise discussion with PGS. RECOMMENDATION Approve the attached resolution (Attachment 1) establishing fixed and uniform refuse and recycling rates for residential and commercial customers effective January 1, 2016. The rate resolution includes an adjustment of 9.77% for residential customers with 96- gallon service, no increase for residential customers with 35-gallon service, and a 3.87% increased for all other customers and services. FINANCIAL STATEMENT The City pays for all of its refuse services and as a result, collection costs for City facilities will increase by 3.87% or approximately $6,200 per year.