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Ms. Hosterman believed the review process that the Waste and Recycling Committee participated in was a very thorough process. The Committee discussed setting up the rate review every four years and how it would benefit the City and Pleasanton Garbage Services to revisit rate increases on a more regular basis, which will be done in the future. [lecause the revenues and expenditures are projections, the Committee wanted to allow Pleasanton Garbage Services the opportunity to come back on an annual basis to revisit the costs to make any corrections that might be necessary. It was important to the Committee to ensure the Pleasanton Garbage Services was guaranteed a fair return for the services that it provides in the City of Pleasanton while protecting the ratepayers and e, nsuring that people are paying a fair amount and not more for the service they are receiving. The Committee believed that 12.28 percent was a fair rate increase. Ms. Ayala asked if the Solid Waste Subcommittee discussed how the rates could be reduced? Ms. Hosterman said the Subcommittee did discuss this matter but it was looking at the break out of the components as reflected in the staff report. Given the fact the rates and costs have increased, Ms. Ay'da asked if there was any discussion between the Committee and Pleasanton Garbage Services on a collaborative effort to reduce overall costs. Mr. Fialho mentioned that the Subcommittee did discuss various ways of approaching rate adjustments, which is currently based on projections over the next four years. The Committee did discuss transitioning into an annual adjustment at the end of the four-year rate cycle. He believed that cost reductions could be achieved annually when expenditures and income are reviewed and assessed. This exercise can only occur annually and it is a departure from what is currently done. Ms. McKeehan pointed out that the City of Pleasanton has changed the types of services with Pleasanton Garbage Services a number of times without actual increases to cost. Ms. Ayala concurred with Ms. McKeehan's point; however, she was still interested in exploring how overall costs could be reduced. Mayor Pico believed the real incentive to managing control costs is with the management and ownership of Pleasanton Garbage Services in terms of its ability to earn a higher percentage or a return on its equity base. He was aware that the City had significant limitations and the amount of information it can receive. He was hopeful that the City might be able to find ways in the future to work with Pleasanton Garbage Services to allow the City to potentially hire outside consultants to review the efficiencies of its operations, independently and confidentially, and provide some recommendations on areas that efficiencies might be increased. In addition, he hoped that the City could Pleasanton City Council 19 07/20/04 Minutes