CAO Tells Committee RBR Program Could Cost City $172M; Committee Advances Item Without Recommendation

The City Administrative Officer recommended the committee adopt recommendations to terminate the Removing Barriers to Recycling (RBR) program tied to the RecycLA franchise contracts, saying the program is projected to cost the city $172,000,000 over nine years and that the general fund has already subsidized about $19,370,000.

The CAO, Janice Yu, told the committee the program currently costs the city roughly $2.5 million per month and that, if the program continues through contract expiration, the city faces an additional projected payout of about $58,000,000 in fiscal 2026–27. Yu said the report was prepared in coordination with the Chief Legislative Analyst and Sanitation and that the CAO recommends terminating the RBR program to coincide with the current contracts’ end on 01/31/2027.

Why it matters: Committee members expressed concern that terminating the RBR program without synchronized replacement contracts could lead to sudden rate increases for customers, undermine diversion goals, and shift costs to low‑income renters, small landlords and small businesses. Council member Padilla warned that ending the program too early could make recycling economically unattractive and increase landfill waste.

Sanitation department officials said the procurement now in progress would eliminate access and distance fees. Dan Myers of LA Sanitation said, “The RFP eliminates them. Proposals are due in next week. All access and distance fees are eliminated,” referring to charges on the blue, black and green bins in the new RecycLA procurement as drafted.

The committee voted on a motion to approve the CAO recommendations. The roll call produced one Aye (Council member Nazarian) and one No (Council member Padilla). With no majority present, the committee advanced the item to the full council "submitted without recommendation," meaning the CAO recommendations will proceed to council but without a committee endorsement.

Clarifying details: the CAO presentation cites (1) $172,000,000 projected program cost over nine years; (2) approximately $19,370,000 already subsidized by the general fund; and (3) an estimated $58,000,000 general‑fund exposure expected in fiscal 2026–27 if the program continues until contract expiration.

Next steps: the committee forwarded the CAO recommendations to the full City Council without recommendation. The new RecycLA procurement timeline given by LA Sanitation calls for proposals due next week, evaluations in January, shortlisting and negotiations by February, and a subsequent contract drafting and approval sequence.