14 - Laserfiche WebLink

meet future environmental programs, staff anticipates this fee increasing with future rate adjustments. In addition the fee adjustment for the existing services, the Subcommittee requested PGS implement a new expanded residential and commercial recycling program to replace the existing programs. The new programs are required to increase the overall amount of material that is made available for recycling to meet the City and county-wide diversion target of 75% in 2010. Currently, approximately 54% of refuse collected in Pleasanton is diverted from landfills to recycling and meeting the 75% diversion target with existing services is unlikely. The new curbside residential program includes an additional container ("cart") to allow for the separation of refuse and recyclables by the property/home owner. To facilitate this enhancement, the MRF will be converted to handle the separation of recyclable material. Currently, the MRF is designed to extract recyclables from refuse. With the new program, material in the refuse cart will be taken directly to the landfill without sorting. Material in the recycle cart will be processed on the MRF. This program will be implemented by the end of 2009. The fee increase attributed to the residential curbside service is 9.29%. However, as discussed later, residents have an opportunity to select a downsized refuse cart which results in a new program increase of 1.58% and an overall increase of 3.9%. The commercial program will be voluntary and is expected to include the collection of recyclables in a cart(s) at commercial buildings in a manner similar to the existing "paper gobbler" program. The primary difference is that the business owner will be required to place the carts outside and recyclable material will include paper, glass, aluminum, etc. This program is expected to be implemented in March 2010. The fee increase attributed to this specific commercial service is 2.50% for commercial accounts. The Table below summarizes the rate adjustment discussed below. A detailed summary of the adjustments is included as Attachment 2. SUMMARY OF REFUSE COLLECTION AND RECYCLING MONTHLY ADJUSTMENT Residential Commercial Source of Adjustment 96-Gallon Serv. 35-Gallon Serv. Per Cubic Yard Existin Services __ $3.64 13% $3.27 13% $2.94.71 %) PGS Franchise Fee $.29 1 % ___ $.26 1 % $.20 1 New Recycling Services $2.60 9.29% $.40 1.58 $2.964.97%) Total Monthly Adjustment $6.53 (23.29%) $3.93 (15.58%) $6.07 (30.68%); I. Service Rate Adjustments for Existing Services The Franchise outlines the allowable expenses and revenue for services and sets forth a process for reviewing these costs. Essentially, the franchise is based on the balancing account franchise model used regularly in the 1980's that requires the franchisee to estimate cost and revenues for future years and identify any revenue shortfalls from previous years to determine a rate that addresses both of these elements. If revenue projections are less then projected and/or if costs exceeded the amounts projected, the franchisee will incur a "deficit" that the City is obligated to review. As a result, any rate increase includes an estimate of future costs plus a reimbursement to address past Page 3 of 9