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THE CITY OF 2 <br /> . CITY COUNCIL AGENDA REPORT <br /> pLEASANTO\ <br /> June 2, 2020 <br /> City Manager <br /> TITLE: ADOPT A RESOLUTION TO APPROVE RATES FOR SOLID WASTE, <br /> RECYCLABLE MATERIALS, AND ORGANIC MATERIALS COLLECTION <br /> SUMMARY <br /> On March 20, 2018, the City Council approved a new Franchise Agreement with <br /> Pleasanton Garbage Service (PGS) for solid waste, recyclable materials, and organic <br /> materials collection services which commenced on July 1, 2018. <br /> Per the Franchise Agreement terms (Section 8.2 C), the Rates shall be adjusted <br /> annually, with City Council approval, commencing on July 1 of each year of the term of <br /> the agreement. The rate setting process identified in the Franchise for Rate Period <br /> Three is a Rate Application using an Index-Based Rate Adjustment Methodology. PGS <br /> submitted a Rate Application request for Rate Period Two with a proposed increase of <br /> 2.0 percent. After review of Application by City staff and consulting firm HF&H and with <br /> agreement from PGS, the increase amount was set to 1.7 percent. <br /> RECOMMENDATION <br /> Approve resolution (Attachment 2) to adopt new rates for solid waste, recyclable <br /> materials and organic materials collection. <br /> FINANCIAL STATEMENT <br /> There is no cost to the City to approve the increased rates to PGS customers. However, <br /> the City will also pay the increased rate on garbage services provided to the City which <br /> is reflected in the FY 2020/21 budget in the amount of $500,000 (including the increase <br /> of 1 .7 percent). <br />