Millbrae approves 2.17% franchise rate increase for trash services under amended South San Francisco Scavenger franchise

The Millbrae City Council on May 27 adopted a resolution implementing the South San Francisco Scavenger Company franchise agreement’s annual rate adjustment, a 2.17% increase that staff said is tied to the Consumer Price Index and the contract formula.

Senior environmental programs manager Andrea Papajon summarized the agreement changes that were negotiated during a franchise amendment adopted in October 2024 and reviewed the annual-rate process required by Section 8.2 of the contract. Papajon told the council the amendment added four services for residents and businesses: multifamily cleanups for accounts of 20 units or fewer, a no-charge drop‑off for residents to bring e‑waste and selected materials, authorized code‑enforcement roll‑off boxes for staff‑requested specialized collections, and quarterly compost distribution for residents.

Nut graf: Using the contract’s adjustment methodology, the franchise amendment allows a 2.17% across‑the‑board rate increase for the coming fiscal year. Papajon presented a comparison showing Millbrae rates remain below the peer-city average for most customer classes and reported the franchise fee revenue to the city from the increased rates will be approximately $1,283,055.

Papajon summarized the mechanics of the rate cycle and the city’s role under the franchise agreement, noting the third-year review mechanism that compares rates to a preselected group of cities every three-year cycle. She recommended adoption of the resolution approving the scheduled rate change; the council voted 5-0 to adopt the resolution.

Ending: Council approved the resolution and the standard franchise reporting and payment provisions will take effect with the July 1 rate cycle noted in the franchise agreement. Papajon said staff will continue to monitor rates and will return with studies required under the agreement such as the three-year comparative review.