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ATTACHMENT 1 <br /> I IF.I I CONSULTANTS i.i_c <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 24, 2021 <br /> Ms. Becky Hopkins <br /> Assistant to the City Manager <br /> City of Pleasanton <br /> P. 0. 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 Four for Rate Change Effective July 1,2021—Final Report <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 Four for Rate Change Effective July 1, 2021 <br /> (Application). <br /> 1. Summary Findings <br /> A. PGS submitted its Application on time and in accordance with Exhibit H — Index-Based Rate <br /> Adjustment Mechanism of the City's Franchise Agreement with PGS(Agreement). <br /> B. The PGS requested rate increase of 1.2% has been reduced to 0.9%(a reduction of$87,060).The <br /> decrease resulted from excluding one vehicle, which PGS added to the 34 vehicles identified in <br /> the Agreement. Such an addition, under the Agreement, is not allowable during an index-based <br /> adjustment. (See Attachment A for a summary of adjusted costs.) <br /> C. This rate adjustment is less than would have resulted from a simple CPI adjustment of 3.0% to <br /> 3.5%,for example.The difference is due mainly to the following:(1)decreases in diesel fuel costs <br /> ($113,000), (2) decreases in organics and C&D processing costs ($175,000), and (3) a year over <br /> year reduction in landfill maintenance/closure costs ($24,000). (See assumed Application CPIs <br /> listed in Attachment B,Schedule 1.) <br /> D. PGS's calculated Proposed Monthly Rates effective July 1, 2021, shown in Schedule 4 of the <br /> Application, were adjusted to reflect the revised increase of 0.9% (See Attachment C for revised <br /> Schedule 4). <br /> 2. Scope of Work <br /> HF&H compared PGS's Rate Application dated March 29,2021,to the Agreement(specifically Exhibit H— <br /> Index-Based Rate Adjustment Mechanism and Exhibit F — Contractor's Total Proposed Costs for Rate <br /> Period One) dated March 5, 2018: <br />