CITY COUNCIL MEETING AGENDA PACKET

Page 2 of 14 RECOMMENDATION 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. BACKGROUND PGS has been the City's exclusive franchise service provider since 1989, without a competitive bidding process. PGS began servicing the City in the 1969 (the franchise was first awarded in 1989, but PGS serviced the City prior to the agreement). Throughout that history, the City’s ratepayers supported the development of the Pleasanton Transfer Station, which encompasses a transfer facility, community drop-off area, and collection vehicle yard, as well as generations of solid waste infrastructure privately owned by PGS, located at their site on Busch Road. Planned residential development and compliance issues with the existing transfer station site have prompted a review by both PGS and the City of the suitability of the current site and potential mitigations or alternative sites for this infrastructure. As directed by the Waste and Recycling Subcommittee, staff, along with HF&H Consultants, LLC (HF&H), implemented a community engagement plan earlier this year to assist in the evaluation of the City’s solid waste services and future facility planning. The results, presented in more detail below, show that the Pleasanton community is largely satisfied with the services provided by PGS, finds value in the benefits of the local transfer station, but is sensitive to the cost and caliber of services received. This is demonstrated by feedback received as part of a statistically valid public opinion survey, which found that approximately 58 percent of Pleasanton residents support conducting a competitive Request for Proposals (RFP) process, regardless of their opinion of PGS or the quality of services provided. On September 23, 2025, a publicly noticed City Council Waste and Recycling Subcommittee meeting was held. At that meeting, the subcommittee discussed the value of the transfer station to Pleasanton residents, and expressed support for continuing negotiations with PGS for a limited period to more fully develop mitigation options at the current transfer facility. As with all agreements, it is the City's responsibility to periodically assess existing conditions and monitor performance to ensure long-term strategic value, as well as identify potential risks and benefits. At this juncture, the City has an opportunity to implement an RFP process (a standard governmental practice) or negotiate solely with PGS to determine the next generation of solid waste services. With either option, it is crucial to ensure transparency, accountability, and fairness as stewards of public resources. The RFP process enables the City to ensure that services directly impacting ratepayers are cost-effective, innovative, and of the highest possible quality. Choosing to forego a competitive RFP process limits the City’s ability to ensure that services rendered meet the highest standard available. A short-term sole source negotiation, however, may allow the City to continue to use the existing publicly available transfer facility and/or the only likely available land for this type of development in the City. If the City Council’s priority is to Page 74 of 399