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THE CITY OF 4 CITY COUNCIL AGENDA REPORT pLEASANT0\ June 1, 2021 City Manager TITLE: ADOPT A RESOLUTION TO APPROVE RATES FOR SOLID WASTE, RECYCLABLE MATERIALS, AND ORGANIC MATERIALS COLLECTION SUMMARY On March 20, 2018, the City Council approved a new Franchise Agreement with Pleasanton Garbage Service (PGS) for solid waste, recyclable materials, and organic materials collection services which commenced on July 1, 2018. Per the Franchise Agreement terms (Section 8.2 C), the Rates shall be adjusted annually, with City Council approval, commencing on July 1 of each year of the term of the agreement. The rate setting process identified in the Franchise for Rate Period Four is a Rate Application using an Index-Based Rate Adjustment Methodology. PGS submitted a Rate Application request for Rate Period Four with a proposed increase of 1 .20 percent. During the review of Application by City staff and consulting firm HF&H, the expense of one vehicle reported by PGS was identified as not an allowable cost during an index based adjustment. The rate increase was adjusted to 0.9 percent to comply with the Agreement index based adjustment requirements. RECOMMENDATION Approve resolution (Attachment 2) to adopt new rates for solid waste, recyclable materials and organic materials collection. FINANCIAL STATEMENT There is no cost to the City to approve the increased rates to PGS customers. However, the City will also pay the increased rate on garbage services provided to the City which is reflected in the FY 2021/22 budget in the amount of $500,000 (including the increase of .90 percent).