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ATTACHMENT 1 <br /> aremin,Runmemomminmwit.„ <br /> Managing Tomorrow's Resources Today <br /> 201 N.Civic Drive,Suite 230 Robert D.Hilton,Emeritus <br /> Walnut Creek,California 94596 John W.Farnkopf,PE <br /> Telephone:925/977-6950 Laith B. Ezzet,CMC <br /> www.hfh-consultants.com Richard J.Simonson,CMC <br /> Marva M.Sheehan,CPA <br /> Robert C.Hilton,CMC <br /> May 8, 2019 <br /> Ms. Becky Hopkins <br /> Assistant to the City Manager <br /> City of Pleasanton <br /> P. O. Box 520 <br /> Pleasanton, CA 94566-0802 <br /> Re: Review of Pleasanton Garbage Service, Inc.Application for Index-Based Rate Adjustment for <br /> Rate Period Two For Rate Change Effective July 1,2019 <br /> Dear Ms. Hopkins: <br /> Following are the findings from our review of Pleasanton Garbage Service, Incorporated's (PGS) <br /> Application for Index-Based Rate Adjustment for Rate Period Two For Rate Change Effective July 1, 2019 <br /> (Application). <br /> Summary Findings <br /> • PGS submitted its Application on time and in accordance with Exhibit H — Index-Based Rate <br /> Adjustment Mechanism. <br /> • The PGS rate increase request of 3.1% is correctly calculated. <br /> • This rate adjustment is somewhat less than would have resulted from a simple CPI adjustment and <br /> the difference is largely due to the reduction in organics tonnage by 30% ($420,000) and franchise <br /> fees ($150,000), partially offset by increases to a number of other costs resulting from higher <br /> adjustment factors than assumed in Table 2. <br /> • PGS'calculated Proposed Monthly Rates 7/1/19,shown in Schedule 4 of the Application, are correctly <br /> calculated without exception. <br /> Scope of Work <br /> HF&H compared PGS' Rate Application dated March 29,2019 to the Agreement(specifically Exhibit H and <br /> Exhibit F- Contractor's Total Proposed Costs for Rate Period One) dated 3/5/2018: <br /> A. PGS' Index Based Rate Adjustment Application Worksheet dated 3/28/19 (Worksheet) Rate <br /> Period 1 Column annual costs agreed in total to Exhibit F Total Column 1 annual costs from the <br /> Agreement. <br /> B. PGS' Worksheet Adjustment Index Column (showing the indexes to be used in the adjustment) <br /> agrees to Exhibit H Table 2 with one exception for the Adjustment Index for Landfill <br /> Maintenance/Closure. Exhibit H, Section 3.C.9 allows for the "Landfill Maintenance and Closure <br /> Costs for each Rate Period shall mean the amount to which Contractor is entitled for the prior <br />