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3 . <br /> THE CITY OF <br /> CITY COUNCIL AGENDA REPORT <br /> PLEASANTON, <br /> December 20, 2022 <br /> City Manager <br /> TITLE: ADOPT A RESOLUTION TO APPROVE A MID-TERM SPECIAL RATE <br /> ADJUSTMENT IN THE AMOUNT OF 0.74 PERCENT FOR SOLID WASTE, <br /> RECYCLABLE MATERIALS, AND ORGANIC MATERIALS COLLECTION <br /> TO COMPENSATE PLEASANTON GARBAGE SERVICE, INC. FOR <br /> INCREASED COSTS RELATED TO A CITY-DIRECTED CHANGE FROM <br /> NOVEMBER 1, 2022, THROUGH JUNE 30, 2023, AS REQUIRED BY THE <br /> FRANCHISE AGREEMENT BETWEEN THE CITY AND PLEASANTON <br /> GARBAGE SERVICE, INC. <br /> SUMMARY <br /> On March 20, 2018, the City Council approved a franchise agreement with Pleasanton <br /> Garbage Service (PGS) for solid waste, recyclable materials, and organic materials <br /> collection services which commenced on July 1, 2018. On June 7, 2022, the franchise <br /> agreement was amended to comply with SB 1383. <br /> A mid-term Special Rate Adjustment is required per the franchise agreement terms, <br /> related to a City-directed change to add an additional Organics Processing Facility to <br /> process commercial organic materials (Article 5.13.313). Per the agreement, PGS is to <br /> be compensated for the increased costs related to the contract with the new processing <br /> facility, Recology Blossom Valley Organics. <br /> In consultation with HF&H Consultants, City staff reviewed the processing contract and <br /> evaluated the cost for transfer and processing of the materials and concluded that a <br /> mid-term Special Rate Adjustment in the amount of 0.74 percent is required. <br /> RECOMMENDATION <br /> Adopt a resolution approving a mid-term Special Rate Adjustment in the amount of 0.74 <br /> percent for solid waste, recyclable materials, and organic materials collection to cover <br /> increased costs from November 1 , 2022, to June 30, 2023, and to commence on <br /> January 1 , 2023, as required by the franchise agreement between the City and <br /> Pleasanton Garbage Service, Inc. <br /> FINANCIAL STATEMENT <br /> The City budgets for garbage service in the general fund garbage expense account, and <br /> the budget for FY2022/23 is $500,000. The mid-term Special Rate Adjustment in the <br /> amount of 0.74 percent will increase the City's expense for garbage service in the <br /> Page 1 of 3 <br />