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Council addresses Recology rate review as staff recommend an 8.52% increase
Summary
City staff recommended an 8.52% increase to Recology's solid-waste collection rates, citing higher disposal and recycling-processing costs and CPI adjustments; council debated insurance and bad-debt drivers before taking a recorded vote that the transcript records inconsistently.
City staff presented a recommended 8.52% increase to solid-waste collection rates under Recology's franchise agreement, citing higher disposal and recycling-processing costs and CPI adjustments. Environmental project manager Robin Proscar told the council the recommended increase "results in an 8.52 recommended increase for this upcoming fiscal year" and gave a line-item breakdown, including disposal rising from $187 to about $193 per ton and recycling-processing increasing from roughly $153 to $177 per ton.
Frank Nelson of Recology described industry-wide insurance pressures as a major driver. "Recology is self insured," he said, explaining that recent large commercial-driving accidents and insurer retrenchment have pushed costs and that the company has had to accept more risk and higher coverage levels. Council members also pressed staff on a marked rise in bad-debt reporting this year; staff attributed that jump in part to a unique special-assessment process that was in place in the prior year but is not active this year.
Council member Leslie Castellano moved to adopt a resolution approving a not-to-exceed 8.52% increase effective July 1, 2026. Council member Contreras Delos said he was "not personally comfortable passing this with the amount of information" available. The clerk announced "2 yes votes" and that Council member Contreras Delos voted no; the transcript then contains contradictory closing lines ("Motion carries" followed immediately by "Motion fails"), a procedural inconsistency documented in the meeting record and noted in our audit.
Staff and Recology outlined options for residents worried about affordability: a senior discounted rate is available but currently requires customers to request it and provide proof of eligibility, and staff said outreach and an expanded education program could reduce recycling contamination (noted at about 21% in the presentation) when the franchise negotiations are completed. City and HWMA representatives also warned that state mandates related to organics collection may create additional costs in future years.
The council's formal recorded outcome for this motion should be confirmed in the official minutes and by the city clerk due to the transcript discrepancy.
