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Managing Tomorrow's Resources Today <br />Ms. Becky Hopkins <br />May 17, 2022 <br />Page 3 of 3 <br />City and PGS have agreed to additional costs to conduct the required services. The additional costs for <br />route reviews are $37,178. PGS did not submit a cost proposal for additional routes at this time. Including <br />costs for contamination monitoring in RP5 would increase the rate by approximately 0.20%. <br />Commercial Organics Transfer and Processing <br />PGS has informed the City that Waste Management will no longer be accepting the City's commercial <br />organic tonnage. The Company has engaged in negotiations forthis material to instead be transferred and <br />processed at Napa Recycling in Napa, CA (NR). The additional cost of transportation and processing at NR <br />was added to the commercial organics per ton processing rate to increase the per ton rate from $68.16 <br />to $110.25. These additional costs have increased the RP5 rates by 0.30%, for a total RP5 increase of <br />6.10%. <br />We appreciate this opportunity to be of service to the City. Please contact me at (925) 977-6964 or <br />rchilton@hfh-consultants.com if you have any questions. <br />Very truly yours, <br />HF&H Consultants, LLC <br />Rob Hilton <br />President <br />Attachments: <br />A. Adjusted Rate Period 5 Increase of 6.10% <br />B. Rate Period 5 Rate Adjustment Application <br />C. Updated Rate Period 5 Rates <br />Dave Hilton <br />Senior Project Manager <br />