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Milpitas accepts 9.19% solid‑waste rate increase after consultant trims Waste Connections’ 12.24% request
Summary
After a third‑party review, the Milpitas City Council accepted a cost‑based solid‑waste rate adjustment for rate year 8 that R3 Consulting calculated at 9.19%, down from the 12.24% requested by Milpitas Sanitation/Waste Connections. The council found the consultant’s methodology conformed with the franchise agreement and adopted the report 5–0.
The Milpitas City Council on Feb. 4 accepted a consultant review of Waste Connections’ cost‑based rate application and found the methodology conformed to the city’s franchise agreement, approving a 9.19% rate adjustment for rate year 8.
Deputy Public Works Director Elaine Marshall described the city’s long‑term franchise with Milpitas Sanitation (now owned by Waste Connections) and explained that three contract years (including year 8) require a cost‑based review rather than an index adjustment. Milpitas Sanitation initially submitted a request for a 12.24% increase; R3 Consulting audited the submission, identified costs that the consultant deemed unallowable under the franchise and corrected index‑based items. R3’s review resulted in a recommended 9.19% increase.
Council members and staff discussed service enhancements negotiated when the franchise was assigned to Waste Connections — including neighborhood cleanup “dumpster days,” an improved bulky‑item pickup program (now up to three items per appointment), a voucher program for self‑haul at the landfill, flattened cardboard collection rules and additional compost giveaways to support SB 1383 compliance. Marshall noted these enhancements were negotiated as part of the assignment and that their ongoing costs are included in the cost‑based rate calculation.
Bill impact: Milpitas Sanitation bills quarterly; for the most common residential subscription the change equates to roughly $3.52–$5.17 per month depending on cart and service level. Senior accounts (qualified account holder age 62+) receive a reduced rate (50% of regular rates), so the senior impact is lower — about $1.76–$1.91 per month for typical service levels.
Consultant Rose Radford of R3 told council that it is common to find adjustments after reconciling contractor submissions to the franchise exhibit and supporting financials. A Waste Connections representative said the higher initial request reflected the company’s true costs and additional drivers used after the company acquired the franchise; R3 adjusted several line items to match contract allowances.
Councilmember Lam moved and Councilmember Lien seconded a motion to accept the R3 report and find the methodology conformed with the franchise agreement; the motion passed 5–0.
Attribution: Deputy Public Works Director Elaine Marshall presented the rate review; R3 Consulting performed the independent analysis; a Waste Connections representative described company costs. Council accepted the report and directed staff to proceed consistent with the franchise agreement.
