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HF&H Consultants <br />590 Ygnacio Valley Rd. Suite 105 <br />Walnut Creek, CA 94596 <br />Phone: (925) 977-6950 <br />Web: hfh-consultants.com <br /> <br /> <br /> <br /> <br />May 14, 2026 <br /> <br />ZeeLaura Page <br />Waste and Recycling Manager <br />City of Pleasanton <br />P. O. Box 520 <br />Pleasanton, CA 94566-0802 <br /> <br />Re: Review of Pleasanton Garbage Service, Inc. Application for Index-Based Rate <br />Adjustment for Rate Period Nine for Rate Change Effective July 1, 2026 – <br />Final Report <br /> <br />Dear ZeeLaura Page: <br />Following are the findings from our review of Pleasanton Garbage Service, Incorporated’s <br />(PGS) Application for Index-Based Rate Adjustment for Rate Period Nine (RP9) for Rate <br />Change Effective July 1, 2026 (Application). <br />1. Summary Findings <br />A. PGS submitted its Application on time and in accordance with Exhibit H – Index-Based <br />Rate Adjustment Mechanism of the City of Pleasanton’s (City) Franchise Agreement <br />with PGS (Agreement). <br />B. PGS requested a rate increase of 4.59% in the Application, which included a number <br />of new “additional costs” submitted in reference to a Special Rate Review. <br />C. PGS’ requested rate increased due to a revision of tonnages to be included in the <br />Application, which were greater than the amounts reported in the annual reports <br />submitted to the City. <br />D. The increases made in the pass-through costs of the Application, a result of the <br />increased tonnage amounts described above, were offset by the removal of most of <br />the “Additional Costs” submitted as a Special Rate Review , lowering the recommended <br />adjustment to 2.23%. <br />2. Review of Rate Application <br />HF&H Consultants, LLC (HF&H) compared PGS’s Application dated April 1, 2026 to the <br />Agreement (specifically Exhibit H – Index-Based Rate Adjustment Mechanism and Exhibit F – <br />Contractor’s Total Proposed Costs for Rate Period One) dated March 5, 2018: <br />A. PGS’ Index-Based Rate Adjustment Application Worksheet , dated April 1, 2026 <br />(Worksheet), shows that the Rate Period 8 costs column agreed with the annual costs <br />from the prior year’s approved rate increase request. <br />B. PGS’ Worksheet Adjustment Index column (showing the indices to be used in the <br />adjustment) agrees to Exhibit H, Table 2. <br />Attachment 1 <br />Page 162 of 443