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THE CITY OF ~ ~ .~ Ins j~L£~S~4NTONo June 17, 2008 Assistant City Manager TITLE: APPROVE A RESOLUTION ESTABLISHING FIXED AND UNIFORM INTERIM/PARTIAL REFUSE COLLECTION AND RECYCLING SERVICE RATES FOR RESIDENTIAL AND COMMERCIAL CUSTOMERS SUMMARY The City maintains an exclusive refuse collection and recycling franchise agreement (Franchise) with Pleasanton Garbage Service (PGS). PGS provides all residential and commercial collection services, including the separate collection of green waste and food scraps from residences. All residential refuse is processed, and recyclables are separated from trash at PGS's transfer station located on Busch Road. In accordance with the terms of the Franchise, PGS may request adjustments to refuse collection and recycling services if it provides detailed information supporting the adjustment. In August 2007, PGS submitted its initial proposal for a service rate adjustment, and additional information requested by the City was submitted this past April. A City Council subcommittee (Subcommittee), comprised of Mayor Hosterman and Councilmember Sullivan, has met with staff to review PGS's request and has approved forwarding the Council an "across the board" 12% interim or partial service rate increase for all residential and commercial accounts. In addition to the requested service rate adjustment, the Subcommittee and PGS have tentatively agreed to modify existing recycling programs by adding a collection cart to be used for recyclable materials. Because the City and PGS are continuing discussions regarding the implementation of these new services, and the cost of existing services, the Subcommittee has agreed to forward an interim rate adjustment until such time as the new programs and related costs are resolved in approximately six months, at which time an additional rate increase is anticipated. RECOMMENDATION Approve the attached resolution establishing fixed and uniform refuse and recycling rates for residential and commercial customers and authorize the Subcommittee to continue discussing the new methods of recycling as outlined in this report with the understanding the new services, and corresponding rate adjustments, will be presented to the Council for its review in approximately six months. 19 CITY COUNCIL AGENDA REPORT FINANCIAL STATEMENT The City pays for all of its refuse services and as a result, these will increase by 12%.