RES 231408 - Laserfiche WebLink

RESOLUTION NO. 23-1408 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON DIRECTING THAT FUNDS IN THE 35-GALLON RESIDENTIAL CART MIGRATION LIABILITY ACCOUNT HELD BY PLEASANTON GARBAGE SERVICE INC., BE REMITTED TO THE CITY OF PLEASANTON WHEREAS, in 2018 when setting rates for rate period one (FY 18/19), the City Council voted to increase the 35-gallon residential solid waste cart rate above the original staff recommendation to offset Pleasanton Garbage Service's (PGS) expressed concerns regarding potential lost revenue due to migration of residential customers from the 96-gallon cart to the 35- gallon cart; and WHEREAS, it was determined that the City and PGS would meet at some time after rate period one to determine if significant migration had occurred because of the lower rates and if PGS would need additional income generated by the higher rate, or if the additional revenue should be remitted back to the City and its ratepayers; and WHEREAS, after one year under the new Franchise Agreement, 329 or 3.6 percent, of PGS's 96-gallon residential customers migrated to the less expensive 35-gallon cart resulting in a loss of revenue of$52,602 which is less than 0.25 percent of PGS's projected annual revenues; and WHEREAS, City staff and the City's consulting firm HF&H Consultants, LLC have concluded that no additional revenue is due to PGS and that the revenues in the liability account belong to the City and its ratepayers; and WHEREAS, PGS has been holding the revenues resulting from the higher 35-gallon residential customer rate set by the City Council in a liability account which has been continually adjusted through the index-based rate adjustment process, and the amount of revenue has accrued to $622,093 as of June 30, 2022. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING: SECTION 1. PGS shall continue to collect and place additional revenue from the 35- gallon residential cart into the 35-gallon residential cart migration liability account held by PGS through June 30, 2024. SECTION 2. All funds held by PGS in the 35-gallon residential cart migration liability account are to be audited and remitted to the City of Pleasanton by September 30, 2024. PGS may request an extension of the remit due date in writing to the City without penalty. SECTION 3. Upon receipt, the City will deposit funds in Special Revenue Reserve Fund 171 to be used for waste and recycling expenses. PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on June 20, 2023. (Vote and signatures to follow on next page}