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ATTACHMENT 2 <br /> y Crowe Horvath, <br /> Crowe Horwath LLP <br /> Independent Member Crowe Horvath International <br /> 575 Market Street,Suite 3300 <br /> San Francisco.California 94105-5829 <br /> Tel 415 576 1 100 <br /> Fax 415 576 1110 <br /> www crowehorwath corn <br /> October 27, 2015 <br /> Mr. Brian Dolan <br /> Assistant City Manager <br /> City of Pleasanton <br /> 123 Main Street <br /> Pleasanton, CA 94566 <br /> Subject: Draft Report-2016 Interim Year Rate Review of Pleasanton Garbage Service, Inc. <br /> Crowe Horwath (Crowe) has completed its review of Pleasanton Garbage Service, Inc.'s (PGS) interim <br /> year 2016 rate application. The City contracted with Crowe to make a recommendation for changes in <br /> refuse collection rates effective January 1, 2016. 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. Interim Year Rate Review <br /> 5. Recommended Rate Change. <br /> 1. Summary <br /> Upon reviewing the 2016 rate application and supporting documentation, Crowe recommends a rate <br /> increase of 3.87 percent effective January 1, 2016 This compares to PGS' requested calendar year 2016 <br /> rate increase of 3.89 percent. Current and recommended residential rates are shown in Table 1 below. <br /> Table 1 <br /> Pleasanton Garbage Service <br /> Year 2016 Residential Rates <br /> (With a 3.87 Percent Rate Increase) <br /> Crowe <br /> Crowe Recommended <br /> Current Recommended Absolute <br /> Service Level (2015) , (2016) Change (2016) <br /> 35-Gallon $33.80 $35.11 $1.31 <br /> 96-Gallon $41.43 $43.03 $1.60 <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 /> Draft—For Discussion Purposes <br />