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