Laserfiche WebLink
ATTACHMENT 1 <br /> '_ • Rte, <br /> Managing Tomorrow's Resources Today <br /> 590 Ygnacio Valley Road,Suite 105 Robert D. Hilton,Emeritus <br /> Walnut Creek,California 94596 John W.Farnkopf, PE <br /> Telephone:925/977-6950 Laith B.Ezzet,CMC <br /> Fax:925/977-6955 Richard J.Simonson <br /> www.hfh-consultants.com Marva M.Sheehan,CPA <br /> Robert C.Hilton <br /> May 17, 2023 <br /> 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 Six for Rate Change Effective July 1,2023—Final Report <br /> Dear Becky 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 Six (RP6) for Rate Change Effective July 1, <br /> 2023 (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 Application requested a rate increase of 8.10%, which includes additional costs for <br /> increased Commercial Organic Materials Processing costs as contemplated in the January 1, 2023 <br /> adjustment,as well as the costs for a payment and billing audit as contemplated in the agreement. <br /> C. This rate adjustment is more than would have resulted from a simple CPI adjustment of 5.5%,for <br /> example. The difference is due mainly to the following: (1) increase in diesel fuel and CNG fuel <br /> costs, (2) labor-related costs, and (3) increased disposal and processing costs. (See assumed <br /> Application CPIs listed in Attachment B, Schedule 1.) <br /> D. PGS's calculated Proposed Monthly Rates effective July 1, 2023, 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 a payment and billing audit as contemplated in Section 6.14.2 of the Agreement, as <br /> agreed to between the City and PGS, were added to the RP6 revenue requirement. These costs <br /> reflect 0.11%of the requested 8.1% increase. <br /> F. Exhibit H Section 6 of the Agreement caps the index rate adjustment at 6%. <br />