Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: SELECTION OF CITY COUNCIL SUBCOMMITTEE FOR
RECOLOGY FRANCHISE AGREEMENT
Date: March 10, 2026
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council adopt a motion assigning two City Councilmembers to an Ad Hoc Committee to review the Detailed Rate Review and potential updates to the rate structure and the City’s solid waste franchise agreement with Recology.
Background
As is common among cities in California, the City of Cotati (City) franchises the function of solid waste collection to a contractor that performs this service on behalf of the City. In Sonoma County, the cities of Cloverdale, Healdsburg, Santa Rosa, Rohnert Park, Cotati and Petaluma, as well as the County of Sonoma, contract with Recology Sonoma-Marin (Recology). The cities of Windsor and Sebastopol currently contract with Sonoma County Resource Recovery (SCRR).
The City of Sonoma contracts with Sonoma Garbage Collectors (SGC).
On March 27, 2013, the City Council entered into a franchise agreement with Redwood Empire Disposal, Inc. (RED), for the exclusive right to provide refuse collection, including construction and demolition debris, in the City of Cotati (City). RED was owned by the Ratto Group. On December 23, 2017, Recology Sonoma Marin (Recology) officially purchased Ratto’s assets and took over the remainder of the Franchise Agreement with the City. The City’s Franchise Agreement (Agreement) with Recology was set to expire on June 30, 2023.
On December 14, 2021, the City introduced an ordinance amending Chapter 8.08 (Solid Waste Management) to conform with the requirements of SB 1383 (Organics). This was followed by an amendment to the Agreement with Recology on June 28, 2022, in coordination with Zero Waste Sonoma, to meet the various new requirements of SB 1383. Included in this amendment was an extension of the Agreement for 5 years to June 30, 2028.
Analysis/Discussion
Under the current Agreement, Recology is entitled to an annual rate increase of 70% of the Bay Area consumer price index. Additionally, Recology can petition for a Detailed Rate Review (DRR) under certain conditions, including:
• Changes in the cost due to new services or City fees. • Changes in the cost of transporting solid waste when the City requires a specified disposal facility.
• Changes in state or local fees.
• Changes in the scope of the Agreement.
• If the cost of operation exceeds gross revenue.
In accordance with the terms of the Agreement, Recology recently applied for a DRR. To efficiently review the DRR, which may also include potential revisions to the Agreement and rate structure, it is recommended that the City Council appoint two Councilmembers to an Ad Hoc committee. If formed, the Ad Hoc committee will review the materials and make a recommendation to the full City Council at a future meeting date.
It is expected that the Ad Hoc committee would meet periodically (no less than monthly), likely through the end of the current calendar year.
Financial Considerations
There are no direct financial impacts. In accordance with the Agreement, review of the DRR is reimbursable by Recology.
Environmental Issues
Where it can be determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review.
This general rule can be applied to activities which could be subject to the CEQA process, but which logic dictates should not be subject to CEQA review. Therefore, based on the information provided above, the proposed resolution is exempt from CEQA pursuant to Section 14.03.021 of the CEQA Guidelines in that there is no possibility that the activity may have a significant impact on the environment.