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LiTel M-91 THE CITY OF a r -� ,II I,.,.� " CITY COUNCIL AGENDA REPORT PLEASANTON June 21, 2022 City Manager TITLE: ADOPT A RESOLUTION TO APPROVE RATES FOR SOLID WASTE, RECYCLABLE MATERIALS, AND ORGANIC MATERIALS COLLECTION FOR FISCAL YEAR 2022/2023 SUMMARY On March 20, 2018, the City Council approved a franchise agreement with Pleasanton Garbage Service (PGS) for solid waste, recyclable materials, and organic materials collection services which commenced on July 1, 2018. The franchise agreement was amended to comply with SB 1383 on June 7, 2022. 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 agreement for rate period five is a rate application using an Index -based Rate Adjustment Methodology. PGS submitted a rate application request for rate period five with a proposed increase of 5.6 percent. In addition, as agreed to contractually in the recent franchise agreement amendment, costs related to the state law SB 1383 requirement of conducting annual route review and contamination monitoring were included in the amount of $37,178, representing .20 percent. The total rate adjustment for rate period five is 5.8 percent. RECOMMENDATION The City Council adopt a resolution approving rates for solid waste, recyclable materials, and organic materials collection for rate period five (Fiscal Year 2022/2023) with an increase of 5.8 percent. FINANCIAL STATEMENT The indexed -rate increase for fiscal year 2022/2023 is 5.8 percent. The City's expenditure for garbage service is budgeted at $500,000 for fiscal year 2022/2023. Additionally, the City will receive from PGS an estimated $1,147,627 in franchise fees in fiscal year 2022/2023.