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City of Pleasanton
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CITY CLERK
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AGENDA PACKETS
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2018
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082118
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CITY CLERK
CITY CLERK - TYPE
AGENDA REPORT
DOCUMENT DATE
8/21/2018
DESTRUCT DATE
15Y
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CITY OF PLEASANTON <br /> CITY COUNCIL <br /> SPECIAL MEETING MINUTES <br /> July 3, 2018 <br /> CALL TO ORDER <br /> Mayor Thorne called the special meeting to order at the hour of 6:30 p.m. and led the Pledge of <br /> Allegiance. <br /> ROLL CALL <br /> Present: Councilmembers Narum, Olson, Pentin (arrived at 6:35), Mayor Thorne <br /> Absent: None <br /> PUBLIC COMMENT— None <br /> PUBLIC HEARING: CONSIDER A RESOLUTION TO APPROVE RATES FOR SOLID WASTE, <br /> RECYCLABLE MATERIALS AND ORGANIC MATERIALS COLLECTION <br /> Assistant City Manager Brian Dolan presented the staff report and a PowerPoint Presentation that <br /> provided background, rate structure scenarios, Subcommittee recommendations, rates, migration issues <br /> and migration consideration, and the migrations consideration process. <br /> The City Council approved a new franchise agreement with Pleasanton Garbage Service, Inc. (PGS) <br /> and the terms included that the City Council set collection rates annually. The new agreement resulted <br /> in a 13.3% reduction in the overall cost to the City and the City can now consider options to apply that <br /> reduction in overall annual costs to the rate structure. Staff met with its consultants and the Council <br /> Subcommittee for Refuse and Recycling and four different scenarios were presented including -13% <br /> reduction for all, residential focus, commercial focus, and a balanced focus. <br /> Assistant City Manager Dolan noted the Subcommittee recommended the balanced scenario, which <br /> would realign rate relationships for both commercial and residential customers, best reflects the City's <br /> goals, and provide competitive rates in comparison to the regional rate survey. As proposed the 35- <br /> gallon residential solid waste rate would be $24.90 and the 96-gallon residential solid waste rate would <br /> be $45.48. The various rates recommended for commercial were displayed and were reflective of very <br /> competitive rates. PGS expressed concerns related to migration, which would result in revenue loss for <br /> each account that changes cart size from 96-gallon to 35-gallon. Staff proposes the City Council <br /> authorize the City Manager to implement a process which consists of a 6 month and 12 month meet- <br /> and-confer process to review any actual migration and revenue loss occurrences. <br /> Assistant City Manager Dolan detailed the migration consideration process including third-party review <br /> of revenue impacts from service migration and detailed expenditure information, a possible one-time <br /> rate adjustment, and a set-aside of $1 million from the City's portion of the rate reserve to address <br /> operating shortfalls from migration. Information was presented relative to alternative rate options, <br /> including raising the 35-gallon cart rate and a proposal by PGS to use the average of Livermore and <br /> Dublin for the 35-gallon cart. <br /> Mayor Thorne inquired whether the two meet-and-confer meetings were mandatory regardless of <br /> migration, as he would support that process. He also inquired as to how the review of PGS' operating <br /> costs would be conducted. City Manager Fialho noted it would be a collaborative effort between the City, <br /> the City's consultants and a third-party to assist in mediating the discussions, as the new franchise <br /> affords an opportunity to review all revenues and expenditures and address any matters that may be <br /> result that makes sense for the City and the provider. <br />
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