ITEM 4. 12
CITY MANAGER' S REPORT
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ITEM: AUTHORIZE ADJUSTMENT TO THE REPUBLIC
SERVICES SOLID WASTE COLLECTION RATES FOR
FISCAL YEAR 2025-026
RECOMMENDATION: Adopt Resolution to Authorize an Increase to Republic Services Collection Rates Based on the
Twelve -Month Average Change in the Consumer
Price Index for All Urban Consumers ( Water, Sewer,
and Trash Collection Service Index) for Fiscal Year
2025-026
SUMMARY:
The City of Lathrop is responsible for the collection and the transport of solid waste within City limits. Since 2003, the City has contracted for these services with Lathrop Sunrise Sanitation, now doing business as Republic Services. The Agreement between the City of Lathrop and Republic Services allows for an annual rate adjustment based on the Consumer Price Index for All Urban Consumers ( Water, Sewer, and Trash).
On April 7, 2025, Republic Services submitted their annual CPI adjustment for commercial and residential rates. For the period of January 1, 2024 through January 1, 2025, the CPI increased by 4. 89%. The annual CPI increase of 4. 89% would apply to all customer classes.
As part of the established consumer rates, Republic Services collects a franchise fee from all customers to cover the cost of state mandated solid waste outreach.
Franchise fees are remitted to the City and staff uses those funds to maintain compliance with state regulations.
If approved, this item will adjust annual rates by 4. 89% for the upcoming fiscal year beginning July 1, 2025, in accordance with the contract terms.
BACKGROUND:
The Lathrop Municipal Code Section 8. 16. 090 gives the City the exclusive right and duty to collect and transport solid waste or provide for the collection and transportation thereof within the City limits under such terms and conditions, as it deems necessary for the public health, safety and well- being, and it may contract for the provision of those services.
On May 13, 2024, City Council approved a five- year amended and restated contract for residential and commercial customers with the contract term ending June 30, 2029.
CITY MANAGER' S REPORT
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES ADJUSTMENT FOR FY 2025-026
PAGE 2
Section V of the Agreement provides that collection rates shall be reviewed annually and adjustments to the maximum solid waste collection rates is to be based on the 12 -month average change of the Consumer Price Index for All Urban Consumers Water, Sewer, and Trash Collection Service Index), not to exceed 5%.
On April 7, 2025, staff received a request from Republic Services to adjust their commercial and residential rates. The proposed 4. 89% increase is based on the 12 - month average change of the Consumer Price Index for All Urban Consumers ( Water, Sewer, and Trash Collection Service Index), which does not exceed the maximum threshold established in the contract of 5%.
The increase would apply to all customer classes effective on July 1, 2025.
The rate request is as follows:
STANDARD RESIDENTIAL RATES:
Container Size Current Rate Proposed 4. 89% Difference
Rate Increase
Small - 30 . al 40. 01
43. 10
48. 93
41. 97 1. 96
Medium - 60 ' al 45. 21 2. 11
Larne - 90 al 51. 32 2. 39
SENIOR RESIDENTIAL RATES:
Container Size Current Rate Proposed 4% Difference
Rate Increase
Small - 30 ' al 29. 78
31. 98
36. 09
31. 24
33. 54
37. 85
1. 46
Medium - 60 . al 1. 56
Larne - 90 . al 1. 76
MOBILE HOME/ TRAILER PARK RATES:
Container Size Current Rate Proposed 4.89% Difference
Rate Increase
Small - 30 ' al 33. 45 35. 09 1. 64
Medium - 60 ' al 34. 11 35. 78 1. 67
Lar. e-90' al 39. 25 41. 17 1. 92
SENIOR MOBILE HOME/ TRAILER PARK RATES:
Container Size Current Rate Proposed 4. 89% Difference
Rate Increase
Small — 30 ' al 25. 10 26. 33 1. 23
Medium — 60 a al 25. 55 26. 80 1. 25
Larne — 90 gal 29.4 30. 67 1. 43
CITY MANAGER' SREPORT
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES ADJUSTMENT FOR FY 2025-026
VETERAN RATES:
PAGE 3
Container Size Current Rate Proposed 4. 89% Difference
Rate Increase
Small - 30 • al 36. 01 37. 77 1.76
Medium - 60 • al 38. 79
44. 04
40. 69 1. 90
Lar• e - 90 • al 46. 19 2. 15
LOW INCOME RATES:
Container Size Current Rate Proposed 4. 89% Difference
Rate Increase
Small - 30 • al 32. 01 33. 58 1. 57
Medium - 60 • al N/ A
N/ A
N/ A
N/ A
N/ A
Lar• e - 90 • al N/ A
COMMERCIAL TRASH RATES - CURRENT RATES:
Container
Size
1 Cu. Yd
One/ Wk
117.7
Two/ Wk
178. 56
Three/ Wk
239. 90
Four/ Wk
301. 19
Five/ Wk
362. 56
2 Cu. Yd 150. 64 231. 40 317. 82 392. 95 473. 71
3 Cu. Yd 190. 98 305. 18 440. 27 600. 95 761.7
4 Cu. Yd 238. 36 392. 95 606. 82 820.0 1030. 85
5 Cu. Yd 295. 04 566. 84 838. 64 1110. 43 1348. 82
6 Cu. Yd 349. 81 682. 56 1015. 73 1348. 82 1681. 99
Lg. Cart 49. 92 N/ A N/ A N/ A N/ A
COMMERCIAL RECYCLING RATES - CURRENT RATES:
Container
Size
1 Cu. Yd
One/ Wk
93. 74
Two/ Wk
178. 56
Three/ Wk
239. 90
Four/ Wk
301. 19
Five/ Wk
362. 56
2 Cu. Yd 120. 51 231. 40 317. 82 392. 95 473. 71
3 Cu. Yd 152. 78 305. 18 440. 27 600. 95 761.7
4 Cu. Yd 190. 69 392. 95 606. 82 820.0 1030. 85
5 Cu. Yd 236. 03 566. 84 838. 64 1110. 43 1348. 82
6 Cu. Yd 279. 85 682. 56 1015. 73 1348. 82 1681. 99
Lg. Cart 49. 92 N/ A N/ A N/ A N/ A
COMMERCIAL ORGANIC WASTE RATES - CURRENT RATES:
90 Gallon 49. 92
CITY MANAGER' S REPORT
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES ADJUSTMENT FOR FY 2025-026
COMMERCIAL TRASH RATES - PROPOSED RATES:
PAGE 4
Container
Size
1 Cu. Yd
One/ Wk
122. 90
Two/ Wk
187. 29
Three/ Wk
251. 63
Four/ Wk
315. 92
Five/ Wk
380. 29
2 Cu. Yd 158. 01 242. 72 333.6 412. 17 496. 87
3 Cu. Yd 200. 32 320. 10 461. 80 630. 94 799. 02
4 Cu. Yd 250. 02 412. 17 636. 49 860. 94 1081. 26
5 Cu. Yd 309. 47 594.6 879. 65 1164. 73 1414. 78
6 Cu. Yd 366. 92 715. 94 1065. 40 1414. 78 1764. 2
Lg. Cart 52. 36 N/ A N/ A N/ A N/ A
COMMERCIAL RECYCLING RATES - PROPOSED RATES:
Container
Size
1 Cu. Yd
One/ Wk
98. 32
Two/ Wk
149. 84
Three/ Wk
201. 30
Four/ Wk
252. 73
Five/ Wk
304. 23
2 Cu. Yd 126. 40 194.7 266. 69 329. 73 397. 50
3 Cu. Yd 160. 25 256. 08 369. 44 504. 27 639. 22
4 Cu. Yd 200. 01 329. 73 509. 20 688. 75 865. 01
5 Cu. Yd 247. 57 475. 73 70372 931. 78 1131. 83
6 Cu. Yd 293. 53 572. 75 852. 32 1131. 83 1411. 39
Lg. Cart 52. 36 N/ A N/ A N/ A N/ A
COMMERCIAL ORGANIC WASTE RATES - PROPOSED RATES:
90 Gallon 52. 36
Weights in excess of maximum amounts per bin per pick up will be charged an additional $ 8. 00 per extra 100 pounds.
FISCAL IMPACT:
No fiscal impact to the City at this time. However, pursuant to the Agreement between the City of Lathrop and Lathrop Sunrise Sanitation, now doing business as Republic Services, and Lathrop Municipal Code Section 8. 16.80, Republic Services shall remit to the City of Lathrop a Franchise Fee of seven ( 7%) percent and an AB939 Recycling Fee of three ( 3%) percent of the gross revenue collected within ten ( 10) days following the completion of each calendar month.
ATTACHMENT:
A. Resolution to Authorize an Increase to Republic Services Collection Rates Based on the Twelve - Month Average Change in the Consumer Price Index for All Urban Consumers ( Water, Sewer, and Trash Collection Service Index) for Fiscal Year 2025-026
B. Letter from Republic Services dated April 7, 2025
CITY MANAGER' S REPORT
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES ADJUSTMENT FOR FY 2025-026
APPROVALS:
PAGE 5
4. 2. 95
Todd S: bastiaPr Date
Director of Parks and Recreation
Cari Jame
Director of -Finance
gladaogs
Date
L// 1, 1016 —
Thomas Hedegard Date
Deputy City Manager
V y•2-4•Z. oZs
Michael King A
Date
Assistant City Manager
Salvador Navarrete Date
City Attorney
S •S • 25
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 25 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO
AUTHORIZE AN INCREASE TO REPUBLIC SERVICES COLLECTION RATES
BASED ON THE TWELVE- MONTH AVERAGE CHANGE IN THE CONSUMER
PRICE INDEX FOR ALL URBAN CONSUMERS ( WATER, SEWER, AND TRASH) FOR FISCAL YEAR 2025-026
WHEREAS, on May 13, 2024, City Council approved a five- year amended and restated contract for residential and commercial customers with the contract term ending June 30, 2029; and
WHEREAS, Section V of the Agreement provides that collection rates shall be reviewed annually and adjustments to the maximum solid waste collection rates is to be based on the 12 -month average change of the Consumer Price Index for All Urban Consumers ( Water, Sewer, and Trash Collection Service Index), not to exceed 5%; and
WHEREAS, on April 7, 2025, staff received a request from Republic Services to adjust their commercial and residential rates pursuant to the Agreement, summarized above; and
WHEREAS, the current 4. 89% increase is on the 12 -month average change of the Consumer Price Index for All Urban Consumers ( Water, Sewer, and Trash Collection Service Index), does not exceed the maximum threshold established in the contract of 5%; and
WHEREAS, the increase would apply to all customer classes effective on July 1, 2025; and
WHEREAS, pursuant to the Agreement between the City of Lathrop and Republic Services and Lathrop Municipal Code Section 8. 16.80 Republic Services shall remit to the City of Lathrop a Franchise Fee of seven ( 7%) percent and a AB939 Recycling Fee of three ( 3%) percent of the gross revenue collected within ten ( 10) days following the completion of each calendar month.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby authorizes an Increase to Republic Services Collection Rates Based on the Twelve - Month Average Change in the Consumer Price Index for All Urban Consumers ( Water, Sewer, and Trash Collection Service Index) for Fiscal Year 2025- 2026, pursuant to Section V of the Agreement, and pursuant to Lathrop Municipal Code Section 8. 16.70, but that the City' sfranchised solid waste hauler shall not be permitted to charge fees any higher than specified for each customer type listed:
STANDARD RESIDENTIAL RATES:
Container Size Current Rate Proposed 4. 89% Difference
Rate Increase
Small - 30 • al 40. 01 41. 97 1. 96
Medium - 60 • al 43. 10 45. 21 2. 11
Lars - 90 • al 48. 93 51. 32 2. 39
SENIOR RESIDENTIAL RATES:
Container Size Current Rate Proposed 4% Difference
Rate Increase
Small - 30 • al 29. 78 31. 24 1. 46
Medium - 60 • al 31. 98 33. 54 1. 56
Lars - 90 • al 36. 09 37. 85 1. 76
MOBILE HOME/ TRAILER PARK RATES:
Container Size Current Rate Proposed 4. 89% Difference
Rate Increase
Small - 30 • al 33. 45 35. 09 1. 64
Medium - 60 • al 34. 11 35. 78 1. 67
Lar• e - 90 • al 39. 25 41. 17 1. 92
SENIOR MOBILE HOME/ TRAILER PARK RATES:
Container Size Current Rate Proposed 4. 89% Difference
Rate Increase
Small - 30 • al 25. 10 26. 33 1. 23
Medium - 60 • al 25. 55 26. 80
30. 67
1. 25
Lars - 90 • al 29.4 1. 43
VETERAN RATES:
Container Size Current Rate Proposed 4. 89% Difference
Rate Increase
Small - 30 • al 36. 01 37. 77 1. 76
Medium - 60 • al 38. 79 40. 69 1. 90
Lars - 90 • al 44. 04 46. 19 2. 15
LOW INCOME RATES:
Container Size Current Rate Proposed 4. 89%
Rate Increase
Difference
Small - 30 • al 32. 01 33. 58 1. 57
Medium - 60 • al N/ A N/ A N/ A
Lars - 90 • al N/ A N/ A N/ A
MMERCIAL TRASH RATES - PROPOSED RATES:
Container
Size
1 Cu. Yd
One/ Wk
122. 90
Two/ Wk
187. 29
Three/ Wk
251. 63
Four/ Wk
315. 92
Five/ Wk
380. 29
2 Cu. Yd 158. 01 242. 72 333.6 412. 17 496. 87
3 Cu. Yd 200. 32 320. 10 461. 80 630. 94 799. 02
4 Cu. Yd 250. 02 412. 17 636. 49 860. 94 1081. 26
5 Cu. Yd 309. 47 594.6 879. 65 1164. 73 1414. 78
6 Cu. Yd 366. 92 715. 94 1065. 40 1414. 78 1764. 2
Lg. Cart 52. 36 N/ A N/ A N/ A N/ A
COMMERCIAL RECYCLING RATES - PROPOSED RATES:
Container
Size
1 Cu. Yd
One/ Wk
98. 32
Two/ Wk
149. 84
Three/ Wk
201. 30
Four/ Wk
252. 73
Five/ Wk
304. 23
2 Cu. Yd 126. 40 194.7 266. 69 329. 73 397. 50
3 Cu. Yd 160. 25 256. 08 369. 44 504. 27 639. 22
4 Cu. Yd 200. 01 329. 73 509. 20 688. 75 865. 01
5 Cu. Yd 247. 57 475. 73 70372 931. 78 1131. 83
6 Cu. Yd 293. 53 572. 75 852. 32 1131. 83 1411. 39
Lg. Cart 52. 36 N/ A N/ A N/ A N/ A
COMMERCIAL ORGANIC WASTE RATES - PROPOSED RATES:
90 Gallon 52. 36
Weights in excess of maximum amounts per bin per pick up will be charged an additional $ 8. 00 per extra 100 pounds.
PASSED AND ADOPTED this 12th day of May 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 40 REPVBLIa
SERVICES
Sustainability in Action
Melissa Stathakopoulos
City of Lathrop
390 Towne Centre Dr.
Lathrop, CA 95330
Subject: Annual CPI -Based Rate Adjustment - Effective July 1, 2025 Dear Ms. Stathakopoulos,
ATTACHMENT' w
April 7, 2025
Pursuant to Section V, Item F of the Agreement Between the City of Lathrop and Lathrop Sunrise Sanitation Corporation, collection rates are subject to annual review during the month of May and may be adjusted effective July lst. Per the terms of the agreement, adjustments are based on the 12 -month average change in the Consumer Price Index for All Urban Consumers ( Water, Sewer, and Trash Collection Services Index), as published by the U. S.
Department of Labor, Bureau of Labor Statistics.
For the period of January 1, 2024, through January 1, 2025, the CPI increased by 4. 89%.
Accordingly, we have applied this adjustment to the current rates.
Please find attached the proposed new collection rates, which are scheduled to take effect on July 1, 2025.
We appreciate the City' scontinued partnership and confidence in Republic Services of Lathrop.
As always, we remain committed to delivering reliable and professional solid waste services to the Lathrop community.
Should you have any questions or require additional information, please feel free to contact me at (209) 547- 7531.
Sincerely,
Republic Services o athrop
Z -z> )
Cina Thompson
Municipal Manager
1145 W Charter Way, Stockton, CA 95206 l RepublicServices. com I Environmental Servkes, Recycling & Waste
RW REPUBLIC
S
fie NVY E=ti
Lathrop Sunrise Sanitation Trash Rates Effective 7/1/ 24 (Current) 1/ WK 2/ WK 3/ WK 4/ WK 5/ WK
1 YD
2 YD
3 YD
4 YD
5 YD
6 YD
150. 64
238. 36
349. 81
231. 40
392. 95
682. 56
317. 82
606. 82
1, 015. 73
392. 95
820.0
1, 348. 82
473. 71
1, 030. 85
1, 681. 99
LG Cart
Lathrop Sunrise Sanitation Recycling Rates Effective 7/ 1/ 24 (Current) 1/ WK
I
2/ WK 3/ WK 4/ WK
2 YD 120. 51
3 YD
4 YD 190. 69
279. 85
5 YD
6 VD
185.2
314.6
546. 05
254.6
485.6
812. 58
314.6
656.4
1, 079.6
378. 97
824. 68
1, 345. 59
90 Gallon Organic 49. 92
Residential Service Weekly Recycling and Green Waste Effective 7/1/ 24 (Current) Standard Senior MHP/ Trailer MHP Senior Veterans Low Income 30 gallon $' 16 U I $ 20. 73 533. 45 $ 25. 10 $ 36. 01 $ 32 i1 ' 60 gallon
90 gallon
43. 10 31. 98 34. 11 25. 55 38. 79 N/ A
4 .') i 6. 09 539. 25 29.4 5/ 9. 04
Lathrop Sunrise Sanitation Trash Rates Effective 7/ 1/ 2025 1 VI)
1/ WK 2/ WK 3/ WK 4/ WK 5/ WK
5" r' 7C: _ . '.•. 1 . 03 5315. 92
2 VD
3 YD
4 VI)
5 YD
YD
158. 01
250. 02
366. 92
242. 7
412. 17
715. 94
333.6
636. 49
1, 065. 40
412. 17
860. 94
1, 414. 78
496. 87
1, 081. 26
1, 764. 2
LG. CAR I
Lathrop Sunrise Sanitation Recycling Rates Effective 7/1/ 2025 1/ WK
1 YD
2/ WK 3/ WK 4/ WK 5/ WK
2iY 35 d3C4
2 VI)
3 VD
4 VD
S YD
6 V
90 Gallon Organic
126. 40
S" ILA
200. 01
293. 53
52. 36
194.7
329. 73
572. 75
266. 69
509. 20
852. 32
329. 73
688. 75
1,31. 83
397. 50
865. 01
1, 411. 39
Residential Service Weekly Trash Recycling and Green Waste Effective 7/1/ 2025 Standard
30 gallon
60 gallon
90 gallon
Senior MHP/ Trailer MHP Senior Veterans Low Income
337 7
45. 21 33. 54 $ 35. 78 2. 6. 80
30. 67
40. 69 N/ A
N=n
Weights in excess ofthese maximum amounts per bin per pick up will be charged an additional Y8. 00 per extra 100 pounds.
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