Item No. 10
Town of Atherton
CITY COUNCIL STAFF REPORT – REGULAR AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: GEORGE RODERICKS, CITY MANAGER
DATE: NOVEMBER 19, 2025
SUBJECT: ADOPTION OF RESOLUTION APPROVING 4TH AMENDMENT
TO THE FRANCHISE AGREEMENT WITH GREENWASTE
RECOVERY, INC.
RECOMMENDATION
It is recommended that the Council a Resolution approving the 4th Amendment to the Franchise Agreement with Greenwaste Recovery, Inc. (“Greenwaste”) for Collection and Processing of Waste, Mixed Compostable Materials, Recyclable Materials and Yard Trimmings.
BACKGROUND
The Town and GreenWaste are parties to a franchise agreement for waste services dated November 19, 2020. The agreement sets annual base compensation adjustments for GreenWaste. In 2025, the base compensation increased by 11%. To reduce the impact on ratepayers, the Town temporarily reduced its Franchise Fee to 5%.
In 2026, the agreement again requires an 11% increase to base compensation. The Town’s Refuse Subcommittee (Councilmembers Widmer and DeGolia) reviewed available resources in the Town’s Rate Stabilization Fund, along with the remaining 5% Franchise Fee capacity, and recommends that the Council consider using a combination of both tools to lessen the impact of the adjustment on ratepayers.
At the October Regular Meeting, during discussion of roll-off bin amendments, the Council set a target effective rate increase for ratepayers of approximately 8%.
ANALYSIS
The Refuse Subcommittee met with GreenWaste to review options for achieving the Council’s target effective rate increase of 8% for 2026. Under the existing franchise agreement, remaining base compensation adjustments are fixed as follows:
2026 – 11%
2027 – 8%
Adoption of 4th Amendment to Franchise Agreement with Greenwaste NOVEMBER 19, 2025
2028 – 5%
2029 – 2035 – CPI
These increases translate directly into ratepayer impacts unless offset by other available tools.
To lessen these impacts in 2026 and to provide greater stability for future years, the Subcommittee worked with GreenWaste to smooth out projected rate adjustments over the remaining term of the agreement. This approach uses a combination of the Town’s Rate Stabilization Fund (approximately $530,000), delayed increases in based compensation, and incremental restoration of the Town’s Franchise Fee to its full 10% level. These tools collectively reduce the effect of the contractual base compensation increases while meeting the Council’s direction for predictability in rates.
By 2035, the Town’s Franchise Fee will be fully restored to 10%, and annual adjustments will revert to CPI-only.
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Contract 11% 8% 5% CPI CPI CPI CPI CPI CPI CPI
Franchise
Fee
4.7% 4.5% 3% 4% 5.7% 7.8% 9.8% 9.9% 10% 10%
Rate
Stabilization
Funds
~$125k ~$225k ~$150k $30k
Effective
Rate
Increase
8% 6% 5% 3%+CPI 2%+CPI 2%+CPI 2%+CPI CPI CPI CPI
The Refuse Subcommittee recommends that the City Council adopt the attached Resolution approving the Fourth Amendment to the Franchise Agreement with GreenWaste.
FISCAL IMPACT
Fiscal impact for 2026 is a 0.3% reduction in anticipated Franchise Fee Revenue which equates to approximately $7,000.
GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
• Goal D - Be Forward Thinking
• Goal C - Maintain Conservative Fiscal Policies and Financial Transparency
POLICY FOCUS
Policy focus for the discussion is the use of Town General Funds and funds within the Rate Stabilization Fund to offset refuse service delivery costs for rate payers.
PUBLIC NOTICE
Adoption of 4th Amendment to Franchise Agreement with Greenwaste NOVEMBER 19, 2025
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders –to include, but be not limited to, media outlets, school districts, Menlo Park Fire Protection District, service provides (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item has not been before a Town Committee or Commission
ATTACHMENTS
1. Resolution Adopting 4th Amendment