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Eureka council approves Recology rate increases after staff audit; new franchise promises lower margins
Summary
The Eureka City Council approved a 9.46% rate increase for fiscal year 2025–26 and ratified a 4.29% increase implemented July 1, 2024, after staff and an outside CPA reviewed Recology’s application and identified cost drivers including higher disposal fees, labor and truck costs and a $119,000 credit for past street‑sweeping overcharges.
The Eureka City Council on Aug. 5 approved increases to residential solid‑waste rates requested by Recology Humboldt County, voting 4–0 to adopt a 9.46% rise for fiscal year 2025–26 and to approve a previously implemented 4.29% increase for FY2024–25.
City project manager Robin Proscar and an outside CPA, Chris Bell, presented the results of a multi‑month audit of Recology’s rate request. “That results in the 9.46% total brought to you tonight,” Proscar told the council, summarizing the staff recommendation following detailed data requests and analysis.
Staff and the consultant told council the principal drivers are higher landfill and processing fees (about one quarter of the increase), union wage rises and higher trucking costs (another quarter), and Recology’s allowable margin and the city’s franchise fee. Staff also identified a $119,000 cumulative over‑allocation in street‑sweeping disposal costs dating back to 2016; that amount was credited against the current application and lowered the proposed increase by roughly 1.18 percentage points.
Council members pressed staff on timing and communication after seeing a prior increase implemented before full council review. Proscar said Recology increased rates before staff had completed its audit but that the subsequent review justified the 4.29% implemented on July 1, 2024. Councilmember Fernandez asked for clearer billing notices; staff said they will require better consumer communications, including explanatory language on bills, if the increase is approved.
Several council members welcomed a negotiated change to the forthcoming franchise agreement that staff said will lower Recology’s allowable margin from 20% to 14%, a move intended to reduce future rate pressure. Councilmember Castellano urged clearer bill messaging so residents understand where the increases go; Councilmember Bauer and others emphasized the need for local solutions to reduce green‑waste transport costs.
The vote: the motion to approve the 9.46% FY2025–26 increase and to ratify the prior 4.29% FY2024–25 adjustment passed 4–0 (Councilmember Moulton absent). Staff said the city will return with a new franchise agreement in coming months with revised margins and proposals for the new organic service that could modify future rate impacts.
What’s next: staff will finalize the new franchise terms and return to council with implementation details and proposed billing notices for customers.
