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Council approves 10‑year extension of Recology garbage franchise with structured rate schedule
Summary
Cotati approved an amendment and 10‑year extension to its solid‑waste franchise with Recology that sets fixed rates for five years, then CPI+1% with a 5% cap and limits extraordinary detailed rate reviews; electric vehicle purchases were discussed but deferred.
The Cotati City Council on May 26 approved an amended franchise agreement and 10‑year term extension with Recology for the city’s solid‑waste collection services. The amendment would extend the franchise to 2038, set fixed single rates for the first five years, and thereafter apply CPI plus 1% with an overall annual increase cap of 5%. The amendment also limits extraordinary detailed rate reviews (requests for additional rate adjustments) to a maximum of two over the agreement term and restricts those to unexpected external changes in law or other material cost drivers.
Staff framed the proposal as a compromise to avoid repeated large rate adjustments resulting from the city’s current 70%‑of‑CPI escalator and recent cost pressures. Staff noted Recology’s investments in a new material‑recovery facility and the company’s purchase of the earlier franchise operator in 2017. R3 consulting provided cost modeling and recommended the structure staff brought to the council.
Council and staff discussed alternatives, including implementing the roughly 20–21% detailed‑rate review increase identified in earlier material or issuing an RFP for a new franchise. Staff and the ad‑hoc committee concluded that an RFP was unlikely to deliver better rates given the limited market and the disruption switching haulers creates. Council members also asked about electric collection vehicles; Recology estimated electric trucks would add about $2 million in costs over the term relative to diesel (electric vehicles cost roughly $1.2M–$2M vs. ~$500k for diesel trucks), and the council left the option open for future consideration rather than including it in the current amendment.
A Recology representative and staff answered questions about labor/CBA impacts, equipment replacement and rate modeling. After public comment supporting the partnership, a councilmember moved and another seconded the resolution to adopt the amended agreement. The motion passed; the transcript records the motion, second and affirmative voice votes but does not provide a detailed roll‑call tally in the excerpt. Staff noted the amendment would go into effect June 1 if adopted and that staff and the ad‑hoc would continue to meet to modernize additional franchise provisions.
What happens next: the amended agreement takes effect as scheduled (staff to implement the new rate schedule and continue ad‑hoc negotiations on additional franchise updates).
