CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 3 of 4 (Attachment 2) to determine the impact of solid waste, recycling, and organics collection vehicles on street maintenance costs within the City’s maintained road system. The study found that the share of the annual street maintenance costs attributable to PGS from refuse vehicle impacts was $2,909,800. Therefore, the City could collect up to $2,909,800 through the garbage rates to cover the cost of street maintenance. While the analysis performed was conservative, HF&H and City staff do not recommend that the entire amount be included in Rate Period Seven, in part to mitigate the fee burden on the rate payers. Instead, staff recommends the inclusion of $1,329,400 in Vehicle Impact Mitigation Fee, which begins to incorporate a significant portion of the Vehicle Impact cost while also maintaining a lower increase for rate payers. By incorporating the fee in this year’s cost-based rate application, the City has the opportunity to include these new costs in a rate period not burdened by other rate adjustment requirements. In future index-based rate adjustment years, the inclusion of this cost (as well as staffing costs) would be in addition to the annual CPI/index-based adjustments in non-cost-based rate adjustment periods, potentially leading to larger rate increases. EQUITY AND SUSTAINABILITY As a full-service municipality, the City provides a wide range of services and programs to meet the needs of all members of the community. Waste and recycling rates take into account both equity and sustainability considerations to ensure fair access to services and promote environmentally responsible waste management practices. The cost of waste disposal is vital to ensuring that the services the City provides are available in a healthy and safe manner to all members of the Pleasanton community. OUTREACH On March 18, 2024, a publicly noticed City Council Waste and Recycling subcommittee meeting was held. STRATEGIC PLAN ALIGNMENT This action advances the ONE Pleasanton strategic plan goal of Investing In Our Environment to continue to implement priority items from the Climate Action Plan 2.0 (CAP) to lead by example in environmental sustainability. FISCAL IMPACT Staff recommends the City Council adopt a resolution (Attachment 3) approving the City to receive from PGS an estimated $1,329,400 in Vehicle Impact Mitigation Fee to be allocated to PGS Reserve Fund (Fund 171), and $500,000 in staff costs to be allocated to PGS Reserve fund (Fund 171) in Fiscal Year 2024/2025 depending on the rate set by the City Council. Prepared by: Submitted by: Approved by: ZeeLaura Page, Management Analyst Alexa Jeffress, Deputy City Manager Gerry Beaudin, City Manager Attachments: 1. Pleasanton RY 7 CBRA Page 27 of 720