Fremont City Council Meeting: 12/09/25 07:00 PM
3300 Capitol Avenue Div/Dept: Community Development
Fremont, CA 94538 Category: Fees & Rates
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5590) DOC ID: 5590
Updated: 12/3/2025 1:58 PM by Dina Lewis Page 1
SOLID WASTE COLLECTION RATES, TRANSFER STATION SERVICE FEES, AND LANDFILL DISPOSAL FEES FOR 2026 AND 2027 - Adopt Resolutions Setting the Integrated Waste Management Collection Rates, Transfer Station Service Fees, and Landfill Disposal Fees for January 2026 through December 2027 and Making Findings of CEQA Exemption
Contact Persons:
Name: Kathleen Cote-Guarnieri
Title: Environmental Services Manager
Div/Dept: Community Development
Phone: 510-494-4583
E-Mail: [email protected]
Executive Summary: The City has three solid waste agreements, including waste collection, transfer and recycling processing, and landfill disposal, which are all elements of providing solid waste services to Fremont residents and businesses. Fees for these various solid waste services are calculated biennially in accordance with each contract's terms.
While the specific adjustment formula varies by contract, each solid waste agreement includes some of the following elements: a Consumer Price Index (CPI) adjustment, a fuel adjustment based upon the OPIS (Oil Price Information Service) fuel index, recovery of increases in regulatory fees, current disposal costs, and changes in recyclable commodity prices. The various solid waste fees are all components of the solid waste collection rates set once every two years by the Council and charged to ratepayers. This report recommends solid waste collection rates for 2026 and 2027, which incorporate the required service fees along with anticipated material collection and recycling processing expenses needed to comply with current State and County recycling regulations.
The recommended monthly rate for the average residential customer for 2026 and 2027 would be $53.15 per month, an increase of $2.13 per month or a 4% increase from the current rates. Commercial rates vary by service, but the average commercial customer would experience an increase of 3% to 4% for refuse and recycling service, depending upon the type of service, for this next two-year period. The overall adjustment recommended reflects changes in inflation, fuel, landfill disposal, and material processing costs. Even with these adjustments, Fremont’s solid waste collection rates compare favorably to the countywide average (see enclosure A).
DISCUSSION/ANALYSIS: The solid waste agreements specify the formula to be used for calculating the biennial compensation adjustment for each solid waste service provider.
While the specific adjustment formula varies by individual contract, each agreement includes some of the following elements applicable to that service fee: 1) a fixed component that is not adjusted, 2) a variable component subject to a Consumer Price Index (CPI) adjustment, 3) a variable component subject to the health insurance index, 4) a fuel component subject to an OPIS (Oil Price Information Service) fuel index, 5) recovery of increases in regulatory fees, and 6) a pass-through of disposal costs. Additionally, the transfer and recycling processing contract includes a mixed paper commodity price index adjustment.
Council Staff Report (ID # 5590) Meeting of December 9, 2025 Updated: 12/3/2025 1:58 PM by Dina Lewis Page 2
The chart below summarizes the various solid waste contracts, the components within each fee, and the contractually required adjustments for 2026-2027. Also detailed are the recommended adjustments for each component.
Summary of Solid Waste Fee/Rate Components
Contract/
Service
Service
Provider
Component 2026-2027 Two-Year
Adjustment
Altamont
Landfill
Disposal
Waste
Management
• Fixed
• Variable
• Regulatory Fees
• No change
• 80% CPI- 3.86% increase
• $.07 per ton increase
MSW Transfer
C&D
(Construction
and Demolition)
Waste Transfer
BLT
Enterprises
• Fixed
• Variable –facility/transfer
• Variable – Health
insurance
• Variable – facility/transfer
wages
• Fuel
• Regulatory Fees
• Landfill Disposal
• Zanker C&D processing
• No change
• CPI- 4.8% increase
• CPI- 4.8% increase
• CPI- 4.8% increase
• OPIS Fuel Index – 15.3%
decrease
• Fuel tax – 10.1% decrease
• Pass-through of approved
landfill disposal rates
• CPI- 4.8% increase
Curbside
Organics
Commercial
Food Waste
Transfer
Commerical
Food Waste
Transfer
BLT
Enterprises
• Variable – facility/transfer
• Variable – Health
Insurance
• Wages –facility/transfer
• Fuel
• CPI- 4.8% increase
• CPI- 4.8% increase
• CPI- 4.8% increase
• OPIS Fuel Index – 15.3%
decrease
Curbside
Processing
BLT
Enterprises
• Inbound Processing Fee
• Residue Landfill Payment
• Mixed Paper Processing
Fee- commodity price
index
• CPI- 4.8% increase
• Blended landfill disposal
approved increase/CPI index –
2.8% increase
• $37.25/ton reduction based
on average commodity price
increase
Council Staff Report (ID # 5590) Meeting of December 9, 2025 Updated: 12/3/2025 1:58 PM by Dina Lewis Page 3
Summary of Solid Waste Fee/Rate Components
Contract/
Service
Service
Provider
Component 2026-2027 Two-Year
Adjustment
Solid Waste
Collection
Republic
Services
• Fixed
• Variable
• Fuel
• Disposal (TS/Landfill)
• Franchise/IWM Fee
• No change
• Blended CPI/Health
Index/Prevailing Wage –
5.47% increase
• Blended OPIS Fuel
index/taxes/delivery- 11.49%
increase
• Pass through of TS Rate plus
$15.30/ton material diversion,
processing, and disposition
• No change
Fixed Costs: This element of the rate pays for start-up costs and capital equipment and is not adjusted during the contract term.
Variable – Health Insurance Index: The transfer station and solid waste collection contracts provide for an adjustment to the health insurance component of the rate using the US City Average Health Insurance Index, as a regional index is not published. The adjustment minimum is the CPI if higher than the Health Insurance Index. For 2026-2027, the CPI of
4.8% was used for the health insurance components of the rate.
Variable – Consumer Price Index: The CPI adjustment is applicable to the variable component of each fee as identified in each solid waste agreement and is calculated on the change in the All Urban Consumers Index (CPI-U), San Francisco-Oakland-Hayward for the previous 24 months. The CPI went from 340.056 in June 2023 to 356.460 in June 2025, a
4.8% increase. The CPI adjustment is also applied to the various liquidated damage penalties provided for in the contracts. The recommended variable adjustment formula for the solid waste collection agreement is a blended index consisting of 45% CPI, 12% US City Average Health Insurance Index (if higher than the CPI), and 43% prevailing wage adjustment, which was 5.47%. The blended variable adjustment was calculated at 5.10%.
Fuel Adjustment: The transfer station and solid waste collection contracts provide for an adjustment to the fuel component of the rate based upon the OPIS fuel index which has fluctuated up and down over the year. The OPIS fuel index decreased 15.3%. The fuel adjustment for the collection contract is slightly different than the one in the transfer station contract. Fuel taxes and fuel delivery are included in the fuel adjustment component for the collection contract while fuel taxes are reflected as a regulatory fee in the transfer station contract. The overall fuel increase for the solid waste collection contract was due to increases in fuel delivery cost offsetting the reduction in fuel prices.
Transfer and Disposal Costs: Staff is recommending a total disposal rate of $109.38 per ton.
This includes various costs associated with processing and ultimate disposition of all solid waste material delivered to the transfer station. Specifically, it includes the base transfer Council Staff Report (ID # 5590) Meeting of December 9, 2025 Updated: 12/3/2025 1:58 PM by Dina Lewis Page 4
station rate of $94.01 per ton (which includes landfill disposal of $37.91 per ton) and materials processing/waste disposal costs of $15.37 per ton. Material processing and waste disposal includes items such as, sorting dry waste to divert from the landfill, surcharges due to excess contamination of recycling material, compliance with State diversion regulations (SB1383), removal of homeless encampment and illegal dumped debris, and the City’s contribution to the commercial organics program.
Curbside Processing Fee: The curbside processing fee is intended to fund the processing of residential recycling material for diversion from the landfill in compliance with current State and County recycling regulations. The fee includes the following three components: 1) per ton incoming material processing fee, 2) mixed paper processing fee, and 3) per ton residue landfill payment. The recommended rates include the following adjustments:
• Inbound processing fee component – 4.8% CPI adjustment • Landfill residue component – blended index including landfill disposal using the approved landfill disposal adjustment (65%) and transportation using the CPI (35%) for of a blended index calculated at 2.82%.
• Mixed paper processing component – this component is adjusted to reflect the average increase or decline in market prices per ton. The average price per ton of mixed paper increased $37.25 from the average used for setting the current rates; decreasing the 2026-2027 charge for mixed paper processing by $37.25 per ton.
Franchise Fee: The franchise fee is paid into the City's General Fund and is used to compensate the public for the value of using the public right-of-way to conduct business.
A franchise fee of 10% of residential rates, and 12% of commercial rates was incorporated in the original 1994 Allied Waste/BFI solid waste collection agreement and has been retained in the current agreement. There are no changes to the franchise fee percentage reflected in the recommended 2025-2026 solid waste collection rates.
Integrated Waste Management (IWM) Fee: In April 2003, Council established IWM residential fees of 16% (of the residential solid waste rate) and a commercial fee of 13.5% (of the commercial solid waste rate), which were incorporated into the solid waste rates effective January 2004. The purpose of this fee is to fund solid waste management activities performed by the City's Maintenance Division (e.g., litter removal, street sweeping, and debris removal from streets and public areas) and Environmental Service Division activities (e.g., waste diversion, program implementation, regulatory compliance, and solid waste contract administration). Staff recommends that the IWM fee remain at the current percentage to continue to provide services like street sweeping, recycling, right of way litter and debris removal, and encampment abatement.
Solid waste service fee comparison/recommendation: A comparison of the solid waste service fees is provided below.
Contract
Service Provider/Item
2024-2025
Fee
2026-2027
Recommended
Fee
% Increase
Altamont Landfill
Disposal
Waste Management $37.26 $37.91 1.80%
Council Staff Report (ID # 5590) Meeting of December 9, 2025 Updated: 12/3/2025 1:58 PM by Dina Lewis Page 5
Transfer Station
and Recycling
Processing
BLT Enterprises
MSW Transfer
C&D Waste Transfer
Curbside Organics
Transfer
Commercial Food Waste
Transfer
Curbside Inbound
Volume Processing Fee
Landfill Residue
Mixed Paper Processing
$91.83
$50.23
$33.70
$51.34
$100.23
$58.19
$78.81
$94.01
$53.83
$35.33
$52.87
$105.06
$59.83
$41.56
2.37%
7.20%
4.80%
3.00%
4.80%
2.82%
(47.27%)
decrease
($37.25/ton)
decrease
Solid Waste
Collection
Republic Services See rate
schedule
below
See rate schedule
below
A comparison of the current and recommended 2026-2027 solid waste collection rates for the most common service categories is provided below. The total percentage increase varies by rate category depending upon the portion of the rate attributable to disposal related expense versus other adjustment indices.
Service Level 2024-2025 2026-2027 Two-year %
Increase
Residential - 64 gallon (per
month) with RPC
$51.02 $53.15 4.17%
($2.13/month)
Multi-family (3 cu. yd. 2 x per
week)
$564.23 $585.11 3.70%
Commercial (3 cu. yd. 1 x per
week)
$283.62 $293.58 3.51%
Commercial - 20 cu. yd.
uncompacted roll-off (per
container serviced)
$589.11 $609.90 3.53%
Commercial - 40 cu. yd.
compactor
(per container serviced)
$2,533.98 $2,594.51 2.39%
Host Fees: At its June 26, 2007, meeting, the City Council established transfer station host fees for franchise waste delivered from Union City/Newark and for all self-haul waste. The host fees are subject to a CPI adjustment as part of the biennial rate setting process and would increase to $11.32 per ton and $13.31 per ton, respectively. The City Council also established a curbside offset fee, which applies to curbside material generated outside of the Tri-Cities and processed at the Fremont Transfer Station. That fee is also subject to a CPI adjustment and would increase from $3.14 per ton to $3.28 per ton.
Council Staff Report (ID # 5590) Meeting of December 9, 2025 Updated: 12/3/2025 1:58 PM by Dina Lewis Page 6
Uncompacted Rolloff Maximum Weights: The collection rates include an allowance for disposal costs. Beginning with the 2010-2011 rates, the City incorporated a maximum weight threshold that represents the maximum disposal weight included in the base collection fee. This ranges from 4-6 tons depending upon the roll off box size. Tonnage above the threshold is subject to an excess per ton disposal charge specified in the rate resolution. This charge was implemented to address cases where some industrial customers place far more waste material by weight in the roll-off boxes than the rates are designed for. Republic has requested an adjustment to the maximum weight thresholds for some problematic box sizes. Staff is conducting an analysis to ensure any adjustment would address the most problematic loads while not impacting more customers than necessary or generating an excess of revenue for Republic Services. Staff is requesting authorization to update the maximum weights, if the analysis indicates an adjustment is needed , to ensure the rates cover the cost of disposal services provided.
FISCAL IMPACT: There are no recommended changes to the Franchise and Integrated Waste Management Fee percentages; however, the fees are calculated as a percentage of total solid waste rates. Any increase in the solid waste rates result in an increase in the total amount of Franchise and Integrated Waste Management Fees generated; therefore, the recommended rates for 2026-2027 would result in approximately $250,000 per year of additional Franchise Fees (General Fund) and approximately $250,000 per year of additional Integrated Waste Management Fees being collected.
ENVIRONMENTAL REVIEW: The proposed action is exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(2), 15378(4)and/or 15378(b)(5) and it has no possibility of a significant effect on the environment, as specified in CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA compliance.
ATTACHMENTS:
• Rate Comparison
• ResoAltamontDraft November 20 2025
• 2026 2027 Draft BLT Mixed Municipal Waste Service Fee Reso 11 21 2025 • Res. 2025-XX Republic Solid Waste Recycling Organic Waste Rates 11 24 25
RECOMMENDATIONS:
1. Adopt a resolution setting disposal fees at the Altamont Landfill effective January 1, 2026, as shown in attachment B of this report.
2. Adopt a resolution setting service fees at the Fremont Recycling and Transfer Station effective January 1, 2026, as shown in attachment C of this report.
3. Adopt a resolution setting Solid Waste Collection rates effective January 1, 2026, as shown in attachment D of this report.
4. Authorize City Manager, or designee, to update the maximum weight included in the base uncompacted roll off industrial rate fee based upon the results of staff’s analysis.