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�,H_i F, H CONSULTANTS LLC <br />590 Ygnacio Valley Road, Suite 105 <br />Walnut Creek, California 94596 <br />Telephone: 925/977-6950 <br />www.hfh-consultants.com <br />May 17, 2022 <br />Ms. Becky Hopkins <br />Assistant to the City Manager <br />City of Pleasanton <br />P. O. Box 520 <br />Pleasanton, CA 94566-0802 <br />ATTACHMENT 1 <br />Managing Tomorrow's Resources Today <br />Robert D. Hilton, Emeritus <br />John W. Farnkopf, PE <br />Laith B. Ezzet, CMC <br />Richard J. Simonson, CMC <br />Marva M. Sheehan, CPA <br />Robert C. Hilton <br />Re: Review of Pleasanton Garbage Service, Inc. Application for Index -Based Rate Adjustment for <br />Rate Period Five for Rate Change Effective July 1, 2022 — 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 Five (RP5) for Rate Change Effective July 1, <br />2022 (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 a rate increase of 5.60%, which includes additional costs for 0.30 of a fork truck. <br />C. This rate adjustment is more than what would have resulted from a simple CPI adjustment of 3.0% <br />to 3.5%, for example. The difference is due mainly to the following: (1) increase in diesel fuel and <br />CNG fuel costs, (2) increases in transfer and transport costs, and (3) increased disposal costs. (See <br />assumed Application CPIs listed in Attachment B, Schedule 1.) <br />D. PGS' calculated Proposed Monthly Rates effective July 1, 2022, shown in Schedule 4 of the <br />Application, were adjusted to reflect the revised increase. (See Attachment C for revised Schedule <br />4). <br />E. Costs for contamination monitoring to comply with SB 1383, as agreed to between the City and PGS, <br />were added to the RIDS revenue requirement. These costs increase the rate from 5.60% to 5.80%. <br />F. Costs for transfer and processing of commercial organic material were increased from $68.16 to <br />$110.25 per ton to account for the proposed change in processing facility. These costs increase the <br />rate from 5.80% to 6.10% <br />