My WebLink
|
Help
|
About
|
Sign Out
02
City of Pleasanton
>
CITY CLERK
>
AGENDA PACKETS
>
2020
>
061620
>
02
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
6/11/2020 11:33:36 AM
Creation date
5/28/2020 2:02:15 PM
Metadata
Fields
Template:
CITY CLERK
CITY CLERK - TYPE
AGENDA REPORT
DOCUMENT DATE
6/16/2020
DESTRUCT DATE
15Y
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
67
PDF
Print
Pages to print
Enter page numbers and/or page ranges separated by commas. For example, 1,3,5-12.
After downloading, print the document using a PDF reader (e.g. Adobe Reader).
View images
View plain text
BACKGROUND <br /> On March 20, 2018, the City Council approved a new Franchise Agreement with PGS <br /> for solid waste, recyclable materials, and organic materials collection. The new <br /> Franchise Agreement commenced on July 1, 2018. The negotiations process included a <br /> detailed analysis of PGS's proposed costs of providing the services required under the <br /> new Franchise Agreement, and resulted in a 13.3 percent reduction in overall annual <br /> costs to the rate payers. <br /> The City Council applied the 13.3 percent reduction to rate structure for Rate Period <br /> One selecting the "Balanced"scenario with Alternative 1. This scenario reduced the <br /> residential 35-gallon cart rate and commercial one and two times per week collection <br /> bin rates (all sizes) to below comparable agencies' corresponding rates, and evenly <br /> applies any remaining balance to all other commercial rates. Alternative 1 raised the <br /> 35-gallon cart rate to Dublin's new proposed rate $26.06, which became effective on <br /> July 1, 2018. This decreased the difference between the City's 96-gallon and 35-gallon <br /> cart rates and reduced the incentive to migrate to the smaller cart. It also retained <br /> Pleasanton's goal of matching the lowest rate amongst our neighboring cities for the 35- <br /> gallon cart service. <br /> The Franchise Agreement outlines that for Rate Periods Two through Six an Index- <br /> Based Adjustment Methodology is to be used to determine annual rate increases. This <br /> process requires PGS to submit an Application to the City by April 1 of each year that <br /> presents the calculations of the annual percentage change in various costs indices, total <br /> calculated annual costs for the Rate Period, the Rate adjustment factor, and all <br /> supporting documentation for the calculations. The application must also present the <br /> Rates for the then-current Rate Period and the proposed Rates for the coming Rate <br /> Period. <br /> DISCUSSION <br /> PGS submitted a Rate Application for Rate Period Three (Attachment 1) as required by <br /> the Franchise Agreement. The Application was reviewed by HF&H Consultants, LLC <br /> who provided a Summary of Findings that concluded that PGS submitted its Application <br /> on time, and in accordance with Exhibit H of the Franchise Agreement. PGS submitted <br /> a rate increase request of 2.0 percent. Per HF&H's analysis, this rate was adjusted to <br /> 1.7 percent due to a decrease of $60,000 resulting from a one-time cost in the same <br /> amount from the prior year, which was inadvertently reflected as an ongoing expense. <br /> The adjusted rates provided by PGS have been corrected to reflect the 1.7 percent <br /> increase and are correctly calculated. <br /> The Rate Application submitted by PGS for Rate Period Three complies with the <br /> Franchise Agreement requirements and has been evaluated for accuracy by HF&H <br /> Consultants and City staff. It is recommended that the City Council adopt the proposed <br /> rates to be effective as of July 1, 2020 in accordance with the terms of the Franchise <br /> Agreement. <br /> Page 2 of 3 <br />
The URL can be used to link to this page
Your browser does not support the video tag.