Daly City council approves phased solid-waste rate increase after public hearing

Daly City’s City Council approved a phased increase to residential and commercial solid-waste rates following a public hearing on Aug. 12, adopting a staff-backed resolution that takes effect Aug. 13, 2024.

Consultant Rick Simonson of HF&H told the council the proposal combines two components: an inflationary adjustment and new costs tied to state recycling requirements. "It is a two-component increase," Simonson said, describing an inflation-based phase-in (15% now, with the remainder carried into the next rate cycle) plus a $0.92-per-account monthly charge to fund contamination auditors required under SB 1383.

Under the approved phase-in, the most common residential service (32–35 gallon cart) would rise from $33.85 to $39.84 beginning Aug. 13; an additional, smaller adjustment would take effect July 1, 2025, as part of rate cycle 6. Staff and the consultant said the higher percentage stems in part from applying inflation across 2021–22 but collecting the adjustment over a shorter (11-month) window because the increase was delayed.

The proposal also funds a new commercial organics route and sampling-based contamination checks for residential carts. A Republic Services representative described the contamination inspections as a lid‑flip, sampling program phased by route rather than a weekly check of every account.

During the hearing dozens of residents asked for more clarity. Guy Marston, a longtime resident, said he was "upset with the big hike" and raised service concerns about carts being left in the street after pickup. Public commenters repeatedly asked what counts as contamination and how the $0.92 charge is calculated. City staff and the Republic representative said outreach materials, quarterly newsletters and social-media education will outline acceptable items for each cart and that the $0.92 fee covers auditors and education.

Staff noted the city mailed Proposition 218 notices to 23,463 solid-waste accounts on June 28, 2024; 11,732 valid protests would have been required to prevent a rate increase. As of 5 p.m. on the hearing day staff had received 82 written protests (0.35% of accounts).

Councilmembers pressed staff on tonnage trends and whether the franchise agreement’s inflation methodology is discretionary; HF&H clarified the inflation calculation uses published Bureau of Labor Statistics figures for 2021–22 per the contract. Council also highlighted an assistance program the council had recently approved: initially funded at $10,000, the utility-rate–assistance program can defer the adjustment for qualifying low‑income households. Staff said they will return to council if additional funds are needed to expand the assistance pool.

Mayor Manalo moved the resolution to adopt the phase-in option. The motion passed on a roll‑call vote with Councilmember DiGiovanni voting no and all other members voting aye.

The council’s action sets the new rates for the remainder of rate cycle 5 and carries a planned rollover of deferred amounts into rate cycle 6 (effective July 1, 2025). Staff said they will continue public outreach, multilingual education and coordination with Republic Services on operational details and contamination-education materials.

Vote tally (item recorded at the Aug. 12 meeting): DiGiovanni — No; all other councilmembers — Aye. The resolution takes effect Aug. 13, 2024.