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THE CITY OF ^ �1 PIEPSANTpry IB oon �•• III�Ii��111 •�n�l� PLEASANTON. MEMORANDUM Date: June 13, 2025 To: Mayor and City Council From: Gerry Beaudin, City Manager C-6 Siew-Chin Yeong, Director of Public Works Re: Council Meeting June 17, 2025 Item #16 Adopt a resolution approving rates for solid waste, recyclable materials, and organic materials collection for Fiscal Year 2025/26 as required by the franchise agreement between the City and Pleasanton Garbage Service, Inc Staff is submitting this supplemental memo regarding the proposed solid waste rates in response to a revision to the FY 2025/26 Rate Application submitted by Pleasanton Garbage Service (PGS). The revised application incorporates updated cost information received from PGS on June 12, 2025, after the June 17, 2025 City Council Agenda Report was published, related to the transport and processing of an additional 3,016 tons of cardboard, which will now be sent to GreenWaste Recovery (GWR) under the new recycling processing agreement with the City. This volume was not included in PGS's original rate application. The change specifically addresses costs associated with processing cardboard collected through PGS's cardboard -only collection accounts. Under SB 1383, jurisdictions are required to provide organic waste collection services through a three -container system (organics, mixed recyclables, and landfill). Standalone cardboard collection does not align with the core regulatory requirements of SB 1383. Following staff analysis and discussion with PGS, the revised rate adjustment includes: 1. An additional PGS cost for transfer of 3,016 tons of cardboard to be processed at GWR. 2. A reduced Vehicle Impact Mitigation Fee to offset the increased transfer cost. As a result of the updated tonnage and processing costs, the revised PGS rate application increases from 1.7% to 2.3%. Accordingly, staff has revised the Vehicle Impact Mitigation Fee to $2,280,627, a reduction from the previously proposed $2,810,000. There is no change to the staff recommendation for a five percent (5%) rate adjustment for FY 2025/26. This adjustment still accommodates the updated Vehicle Impact Mitigation Fee and supports the City's ongoing solid waste, recycling, and street maintenance objectives.