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Arcadia council accepts Waste Management contract amendment, sets Proposition 218 hearing for June 16
Summary
Council reviewed and accepted an amendment to the residential refuse and recycling agreement with Waste Management, endorsed a rate-adjustment methodology (3.27% baseline plus phased labor fees), provided examples of monthly increases, and set a Proposition 218 public hearing for June 16, 2026.
The Arcadia City Council reviewed and accepted an amendment to its residential refuse and recycling agreement with Waste Management and directed staff to follow Proposition 218 procedures, setting a public hearing for June 16, 2026.
Bridgette Arndell, Environmental Services Manager in the Public Works Services Department, told the council the city has been served by Waste Management for residential refuse and recycling since 1999. She described the proposed third amendment as continuing a five-year rate-adjustment schedule that complies with Proposition 218 (voter-notice and protest procedures), adding a phased two-year labor fee (split between single-family and multifamily rates), aligning contamination rates to the regional average, and adding an extra mulch giveaway for a total of three per fiscal year.
"Waste Management has been serving Arcadia for residential refuse and recycling services since 1999," Arndell said, and the amendment updates the contract’s annual rate-adjustment schedule and certain service provisions.
Arndell explained the annual rate-adjustment methodology uses two weighted components: a 40% disposal/diversion component (tipping and processing fees) and a 60% service component tied to the Consumer Price Index (Los Angeles–Long Beach–Anaheim). For FY 2026–27, staff calculated a 3.27% baseline adjustment. To address rising collection labor costs, the amendment includes phased labor fees that are added to the CPI-based adjustment.
Staff presented sample impacts: single-family standard-service customers would see the 3.27% adjustment plus a $0.28-per-month labor fee, increasing monthly bills by $1.53 to $40.36 (a 3.94% change). Multifamily standard-service rates would see a $1.17-per-month labor fee added (a $9.17 increase to $254.57, 3.73%). Multifamily split-bin services would see a $0.58 labor fee added (a $7.19 increase to $210.12, 3.54%). Arndell and Waste Management staff noted the total revenue to the city from Waste Management fees for FY 2026–27 is estimated at $208,714.
Staff told the council the city must mail Proposition 218 notices about the proposed rates by April 30 and will provide a drop box at City Hall for written protests. At the June 16 hearing, if a majority protest (50% + 1 of affected customers) does not occur, the council may vote to approve the rates for FY 2026–27 through FY 2030–31.
Council members asked for clarification on comparative rates in neighboring cities and were told many comparators have not yet implemented their annual adjustments and that Arcadia’s services (household hazardous waste curbside pickup, sharps collection, leaf programs and multiple mulch giveaways) provide value relative to cost. Waste Management staff provided a customer service phone number to be posted on the city website.
The council moved, seconded and approved the amendment and the Proposition 218 process direction at the April 21 meeting; staff will mail notices and return for the June 16 public hearing. No formal rate adoption occurred at this meeting; final approval depends on the outcome of the ballot/protest process required by Proposition 218.
