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Page 1 of 3 <br />Item #12 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />June 16, 2026 <br />Public Works - Operations Division <br /> <br />TITLE: ADOPT A RESOLUTION APPROVING RATES FOR SOLID WASTE, <br />RECYCLABLE MATERIALS, AND ORGANIC MATERIALS COLLECTION FOR <br />FISCAL YEAR 2026/27 AS REQUIRED BY THE FRANCHISE AGREEMENT <br />BETWEEN THE CITY AND PLEASANTON GARBAGE SERVICE, INC. <br /> <br />SUMMARY <br />Pursuant to the existing franchise agreement (Franchise Agreement) between the City of <br />Pleasanton and Pleasanton Garbage Service, Inc. (PGS), garbage collection rates are <br />adjusted annually with City Council approval, effective July 1 of each year during the term of <br />the agreement (Section 8.2 C). The rate-setting process identified in the Franchise Agreement <br />for Rate Period Nine is an index-based rate adjustment methodology. <br /> <br />On March 31, 2026, PGS submitted a rate application for Rate Period Nine, proposing a 4.59 <br />percent increase based on the index-based methodology and including a Special Rate Review <br />request. After review by the City’s consultant, HF&H Consultants, LLC (HF&H), staff is <br />recommending a 2.23 percent rate adjustment effective July 1, 2026, reflecting only eligible <br />and verified cost factors consistent with the Franchise Agreement. <br /> <br />RECOMMENDATION <br />Adopt a resolution approving rates for solid waste, recyclable materials, and organic materials <br />collection for FY 2026/27, as required by the Franchise Agreement between the City and PGS, <br />and approve the FY 2026/27 garbage rate adjustment of 2.23 percent. <br /> <br />BACKGROUND <br />The current Franchise Agreement for garbage services outlines the processes for annual rate <br />adjustments, including both index-based and cost-based rate adjustments, as shown in Table <br />1. July 1, 2026, marks the beginning of the ninth Rate Period, which requires an index-based <br />rate adjustment. As stipulated in the Franchise Agreement, all rates are subject to City Council <br />approval. <br /> <br />Historically, index-based rate adjustments have been presented to the City Council on the <br />Consent Calendar because the adjustment methodology is established in the Franchise <br />Agreement and is limited by several cost indices. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Page 159 of 443