CITY COUNCIL MEETING AGENDA PACKET

Page 1 of 14 Item #10 CITY COUNCIL AGENDA REPORT November 18, 2025 Public Works - Utilities Division TITLE: RECEIVE AN UPDATE ON THE OUTCOME OF STAKEHOLDER ENGAGEMENT AND FACILITY FEASIBILITY AND COST ANALYSIS, AND DIRECT STAFF TO MEET AND CONFER WITH PLEASANTON GARBAGE SERVICE TO NEGOTIATE A THREE TO FIVE-YEAR EXTENSION OF THE CURRENT FRANCHISE AGREEMENT FOR SOLID WASTE MANAGEMENT SERVICES IN PLEASANTON AND BRING A RECOMMENDATION BACK TO CITY COUNCIL NO LATER THAN JULY 2026 SUMMARY The City of Pleasanton (City) has issued an exclusive franchise service agreement with Pleasanton Garbage Service (PGS) for waste, recycling, and organic materials collection, effective July 1, 2018 through June 30, 2029. As the agreement nears expiration, the City has been evaluating service options to inform the decision to issue a competitive Request for Proposals (RFP) or negotiate a sole-source agreement with PGS. This report provides relevant information on community and stakeholder input, facility feasibility and cost analysis, and consideration of different approaches and models in other California cities. While much of the analysis and public input supports a recommendation for a competitive RFP to consider all available options, certain specific issues related to the transfer station and the ability to maintain that operation for public use indicate the value of additional short-term sole- source negotiations with PGS. During this additional negotiation period, the City and PGS will meet and confer for up to six months to determine whether and how the transfer station can mitigate current and likely future issues related to permit compliance, operational adjustments resulting from less available space, and neighbor concerns over noise, odor, and traffic at the site. Staff recommends that the extension negotiations with PGS focus on a short-term three-year extension, with two one-year options, for a maximum extension period of five-years. This extension will allow the City to ensure this critical service worth approximately $500 million for the full scope of the franchise agreement, is cost-effective, high quality, and delivers the best possible value to ratepayers. PGS has represented, and staff agrees, that these negotiations should be resolved within six months. As such, staff proposes to return to the City Council no later than July 2026 to present the outcome of the discussion and a recommendation for next steps. At that time, if negotiations with PGS have been successful, staff will bring back an amendment to extend the current agreement and a framework within that amendment for arranging for transfer station services separate from collection services in the future. If negotiations with PGS have not been successful, staff intends to recommend proceeding with a competitive RFP for these services to preserve sufficient time for an RFP and service provider transition before the expiration of the current agreement. Page 73 of 399