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Authority asks staff to negotiate after Recology seeks large processing-fee hike
Summary
Staff told the board that Recology requested a processing-fee increase of about 37% while authority financial reports show processing costs have risen roughly 8.42% since 2021; the board gave consensus to staff to negotiate and request additional supporting data.
Director Ted told the board that the authority has received a Feb. 23, 2025 letter from Recology seeking service-fee adjustments tied to price-index changes and requesting a substantial increase in per-ton processing fees.
"According to the numbers in those reports, their processing costs have increased by 8.42% from 2021 to 2025, and their request is for an increase of 37%," Ted said, arguing that additional supporting information is required before the board adopts any change order.
Commissioners asked for more detail and a negotiation process. One commissioner asked Joel to outline why processing fees may be higher; Joel said the landfill increased its rates and that historically the green-waste element sat outside the original contract and the authority absorbed some disposal costs.
The board gave consensus direction for staff (Ted, Kira and operations staff) to negotiate with Recology and Hambro, draft change orders for subsequent formal consideration, and return with documentation so the public can comment at the formal hearing. Staff emphasized that rate changes generally roll into annual budget approval and are implemented via a rate ordinance or resolution.
If the board receives requests beyond CPI, Ted said staff will ask Recology for detailed cost justification and supporting documents. Commissioners emphasized the need to complete negotiations in time for July rate changes that align with the fiscal year.
