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LA San presents Recycla 2 plan and cost study; committee forwards report to council after 2–1 vote
Summary
LA Sanitation presented a proposed commercial franchise procurement ("Recycla 2"), a consultant cost analysis estimating about $41.66 million in annual administrative costs plus $3.18 million in one‑time transition costs, and proposed municipal‑code updates. The committee approved forwarding the report to full council with a 2–1 vote amid questions about consumer cost and schedule.
Los Angeles — The Los Angeles City Council committee heard a presentation May 5 from LA Sanitation and Environment on "Recycla 2," a planned competitive procurement and municipal‑code update for the city’s commercial recycling, trash and organics franchise system, and voted 2–1 to forward staff recommendations to full council.
Paul Cobian, acting division manager for the solid resources commercial franchise division at LA Sanitation and Environment, told the committee the R3 consultant analysis “identifies the city’s full cost to manage and administer the program, totaling approximately $41,660,000 annually with an additional $3,180,000 in one‑time transition costs.” He said the recommendations include municipal‑code changes, a transition to a cost‑based fee model, creation of a dedicated special fund, stronger service requirements across waste streams, and a refined zone structure to improve efficiency.
The presentation outlined a phased schedule: an RFP released in 2025, proposal evaluation and interviews through spring 2026, negotiations with shortlisted proposers in May–June, and board and council approvals ahead of contractor mobilization before the current contracts expire in January 2027.
Committee members pressed staff on how Recycla 2 differs from simply extending existing contracts. Councilmember Padilla asked whether approving the Recycla 2 recommendations effectively eliminates the current contractors’ five‑year renewal options and whether the changes would raise costs for multi‑unit dwellings and commercial customers. Padilla said the timing and information made her “feel like the whole thing feels incredibly rushed.”
Alex Hu, assistant general manager at LA Sanitation and Environment, said staff attempted renegotiations with incumbent haulers but could not reach terms that met the city’s policy and regulatory objectives, including compliance with the state organics law referenced in the transcript (spelled during the meeting as “SB 13 83”) and clean‑fuel rules. Hu said the city received nine proposals and has begun negotiations; he told the committee that specific rate outcomes must be brought back to council and that staff could not disclose negotiation details while talks were ongoing.
Padilla pressed for clarity on whether previous city payments for infrastructure (described during the meeting as a 7% adjustment in earlier rounds) should limit future fee pass‑throughs to customers. Sanitation staff said the earlier payments helped build infrastructure but that prior renewal talks still failed to meet council objectives. Staff also noted that one earlier set of renewal proposals had asked for substantially larger increases (a figure cited in the hearing as about $120 million), which led council to instruct sanitation to pursue a new RFP.
The committee also questioned CEQA timing. Sanitation said the proposed changes fall within the program EIR adopted in 2014 and that staff expect to prepare a CEQA addendum (which staff estimated takes roughly four to six weeks) in parallel with ordinance work.
Council members raised operational concerns — including illegal dumping, right‑sizing container capacity, pickup frequency, and service for downtown adaptive reuse buildings. Sanitation said the proposal would require haulers to perform waste assessments, right‑size service levels, and provide community service bins (roughly 40 cubic yards) coordinated with council offices to address dumping.
After discussion, Chair Councilmember Adrienne Nazarian moved to approve the recommendations in the LA San report and forward them to full council; the motion was seconded and the clerk recorded a committee vote of two yeses and one no (Nazarian and Gerardo yes; Padilla no). The committee’s action will send the item to the full council as submitted without a committee recommendation.
What’s next: Sanitation staff said they will continue negotiations with proposers, complete the CEQA addendum and ordinance drafts, and return with recommended contract terms and any required fee projections for council consideration prior to final approvals.
