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City staff recommend no overall rate increase for Republic Services; propose fee-structure updates
Summary
Consultants reviewed Republic Services' 2024 report and found adjusted returns above target but recommended no overall rate increase through Dec. 2026. Staff recommended restructuring bulky-waste fees, pausing recycling-contamination fees until county guidance, restricting extra-yardage fees to garbage, and minor rate-sheet housekeeping.
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City staff and consultant Bell & Associates presented the results of Republic Services’ 2024 franchise review at the Oct. 7 Lake Oswego City Council meeting and recommended no overall rate increase at this time. Consultant Lindsay Waldrom reported an adjusted overall return on revenues of roughly 13.65% (breakdowns: roll cart ~11.8%, containers ~20.4%, drop box ~7.4%) and noted increased commercial revenue drove this result.
Despite the recommendation to hold rates, staff proposed several targeted changes to the rate schedule for council consideration:
- Restructure bulky-waste fees to a simplified size-based category (small, medium, large, extra-large) and include separate categories for Freon-bearing items and electronics, mirroring a structure used in Washington County to improve clarity for residents and operator implementation. - Pause recycling-contamination fees (residential and commercial) for one year to align Lake Oswego with a pending countywide contamination-reduction plan under the state's Recycling Modernization Act; staff said Clackamas County will provide program guidance and education resources. - Restrict the extra-yardage fee to garbage containers only (currently applied to recycling in Lake Oswego), removing that charge from recycling to encourage service adjustments rather than penalty fees. - Clean up obsolete or duplicate fees on the rate sheet (summary-billing rates, duplicate reinstatement fee) and add missing standard fees (late-payment fee, container lock fee).
Councilors asked about Metro disposal-rate trends and the long-term trajectory of regional tip fees; staff said disposal rates have generally increased and that Metro is considering facilities and system planning that could affect future fees. Council signaled support for staff direction, asked staff to continue outreach and return next year for the routine rate review, and requested follow-up materials on Metro rate drivers.

