RES 18-1010 - Laserfiche WebLink

Exhibit A RATE RESERVE AGREEMENT This Rate Reserve Agreement(the"Agreement")is made as of March 20,2018 by and between Pleasanton Garbage Service,Inc.,a California corporation(the "Collector"),and the City of Pleasanton (the"City"),with reference to the following: A. The Collector and the City are parties to that certain Refuse Collection Agreement dated May 16, 1989,as amended(the"Current Collection Agreement"),under which the Collector has accumulated a franchise rate reserve and certain franchise rate deficits. B. The City Council has approved,and the Collector and the City have agreed to execute that certain Agreement for Solid Waste,Recyclable Materials and Organic Materials Collection Services (the"New Collection Agreement"),which will replace the Current Agreement effective July 1,2018. C. The parties wish to eliminate the franchise rate reserve and deficits described above under the Current Collection Agreement,in accordance with the terms described herein. NOW,THEREFORE,in and for mutual covenants herein and other good and valuable consideration,the receipt and adequacy of which are hereby acknowledged,the parties hereby agree as follows: 1. For purposes of this Agreement,capitalized terms used herein shall have the following meanings: "Collector"means Pleasanton Garbage Service, Inc.,a California corporation. "Current Collection Agreement"shall mean the Refuse Collection Agreement dated May 16, 1989,as amended. "Deficit"shall mean the aggregate of the rate reserve deficits existing under the Current Collection Agreement as of June 30,2018,as determined in accordance with the Current Collection Agreement based on records prepared according to GAAP(which will be$975,317 in accordance with the Current Collection Agreement). "GAAP"shall mean generally accepted accounting principles in the United Stated consistently applied. "New Collection Agreement"means the Agreement for Solid Waste,Recyclable Materials and Organic Materials Collection Services,effective July 1,2018. "Profit on the Unamortized Balance"means the amount resulting from dividing the Unamortized Balance as of June 30,2018 by 0.90 and, from the resulting quotient,subtracting the Unamortized Balance as of June 30,2018(which will be$130,145). "Reserve"shall mean the rate reserve existing under the Current Collection Agreement as of June 30,2018,as determined in accordance with the Current Collection Agreement and this Agreement based on records prepared according to GAAP(which was$4,298,737 as of March 31,2017 in accordance with the audited financial statement for Collector as of such date received by the City). The amount of the Reserve at June 30,2018 is unknowable but Collector has represented to City that,while a number of factors can affect the absolute balance, it is currently reasonable to believe that it is sufficient to provide for the Deficit,the Unamortized Balance,and Page 1 of 3