The city of Pleasanton appears poised to continue its decades-long relationship with Pleasanton Garbage Service (PGS) after the City Council last week endorsed the early framework for a new franchise agreement to allow the local company to remain as the city’s solid waste service provider.
In addition to expanded services and anticipated rate reductions, a key aspect of the proposal would see the city contract with another company to process recyclable and organic materials collected from Pleasanton residents and businesses after PGS officials said they would be unlikely to provide processing services in a cost-effective manner going forward.
Separating out processing services would allow the city to avoid needing to find a new garbage hauler and instead stay with PGS, which has been servicing Pleasanton since the 1970s.
"I’m thrilled that we’re extending the franchise agreement with PGS without having to go out to bid," Councilwoman Kathy Narum said during the Dec. 19 meeting in the council chamber. "I think it is going to be a benefit to the citizens and the businesses. They are going to see a reduction in their garbage and they’re going to get more services."
Mayor Jerry Thorne also said he was extremely happy to see the city be able to continue working with PGS, which has become a Pleasanton institution.
"When I first heard that (the city might need to consider going to bid), I kind of had a chill run down my back because these guys are part of the history of this community," the mayor added. "So I’m very, very glad we were able to work this out and we can move forward with it."
With the current franchise agreement set to expire in June 2019, city staff — along with its consultant firm HF&H Consultants — have been negotiating with PGS on a new deal for months, according to assistant city manager Brian Dolan.
Given PGS’s long history of quality service to Pleasanton, the council wanted to first negotiate with the company on an updated contract, rather than conduct a costly public bidding process to find a new service provider, if PGS could meet the city’s waste collection goals going forward, according to Dolan.
Those objectives included obtaining a modern service agreement consistent with industry standards, reducing collection rates, increasing the city’s franchise fee and transferring the risk of unexpected operating costs to PGS instead of ratepayers.
City staff and PGS officials have reached an accord on the framework for a tentative agreement, with key provisions such as a 13.3% reduction in PGS compensation, the city’s franchise fee will increase from 2% to 4%, service rates will be based on an industry index and rates won’t be adjusted to pay for costs incurred in prior years.
New services offered during the 11-year contract would include bulk curbside waste pickup for customers up to three times per year, collection of used motor oil and filters, PGS installing a state-of-the-art information system and the company improving public education on recycling and organics diversion.
The notable exception from the proposed contract is that the Pleasanton company would no longer be responsible for processing recyclable and organic materials. For PGS officials, processing recyclables at the Busch Road transfer station became too costly and they were concerned about being able to find a vendor to process organics at an acceptable cost, Dolan said.
Under the new proposal, PGS would still pick up recyclables and organics from residents and businesses, but the city would instead find another firm to process those materials — and PGS would need to deliver those materials to the city’s new vendor.
City officials anticipate a reduction of 13.3% to PGS’s compensation based on current recyclables and organics processing costs. In the end, they expect recyclables processing costs to go down more by finding a new vendor but organics processing costs may increase.
To read the full story, visit https://pleasantonweekly.com/news/2017/12/26/city-plans-to-retain-pleasanton-garbage-as-solid-waste-hauler.