ITEM 4. 16
CITY MANAGER' S REPORT
MAY 11, 2026 CITY COUNCIL REGULAR MEETING
ITEM: AUTHORIZE ADJUSTMENT TO THE REPUBLIC
SERVICES SOLID WASTE COLLECTION RATES FOR
FISCAL YEAR 2026-027
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
2026-027
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 17, 2026, Republic Services submitted their annual CPI adjustment for commercial and residential rates. For the period of January 1, 2025 through January 1, 2026, the CPI increased by 4. 93%. The annual CPI increase of 4. 93% 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. 93% for the upcoming fiscal year beginning July 1, 2026, 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 11, 2026 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES ADJUSTMENT FOR FY 2026-027
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 17, 2026, staff received a request from Republic Services to adjust their commercial and residential rates. The proposed 4. 93% 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, 2026.
The rate request is as follows:
STANDARD RESIDENTIAL RATES:
Container Size Current Rate Proposed 4. 93%
Rate Increase
Difference
Small - 30 gal 41. 97 44. 04 2. 07
Medium - 60 gal 45. 21 47.4 2.3
Large - 90 gal 51. 32 53. 85 2. 53
SENIOR RESIDENTIAL RATES:
Container Size Current Rate Proposed 4. 93%
Rate Increase
Difference
Small - 30 gal 31. 24 32. 78 1. 54
Medium - 60 gal 33. 54 35. 19 1. 65
Large - 9O gal 37. 85 39. 72 1. 87
MOBILE HOME/ TRAILER PARK RATES:
Container Size Current Rate Proposed 4.93%
Rate Increase
Difference
Small - 30 gal 35. 09 36. 82 1. 73
Medium - 60 gal 35. 78 37. 54 1. 76
Large - 90 gal 41. 17 43. 2O 2. 03
SENIOR MOBILE HOME/ TRAILER PARK RATES:
Container Size Current Rate Proposed 4. 93%
Rate Increase
Difference
Small - 30 gal 26. 33 27. 63 1. 30
Medium - 60 gal 26. 8O 28. 12 1. 32
Large - 9O gal 30. 67 32. 18 1. 51
CITY MANAGER' S REPORT
MAY 11, 2026 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES ADJUSTMENT FOR FY 2026-027
VETERAN RATES:
PAGE 3
Container Size Current Rate Proposed 4.93%
Rate Increase
Difference
Small - 30 gal 37. 77 39. 63 1. 86
Medium - 60 gal 40. 69 42. 70 2. 01
Large - 90 gal 46. 19 48.7 2.8
LOW INCOME RATES:
Container Size Current Rate Proposed 4. 93%
Rate Increase
Difference
Small - 30 gal 33. 58 35. 24 1. 66
Medium - 60 gal N/ A N/ A N/ A
Large - 90 gal N/ A N/ A N/ A
COMMERCIAL TRASH RATES - CURRENT RATES:
Container
Size
One/ Wk Two/ Wk Three/ Wk Four/ Wk Five/ Wk
1 Cu. Yd 122. 90 187. 29 251. 63 315. 92 380. 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 - CURRENT RATES:
Container
Size
One/ Wk Two/ Wk Three/ Wk Four/ Wk Five/ Wk
1 Cu. Yd 98. 32 149. 84 201. 30 252. 73 304. 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. 73 703.2 931. 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 - CURRENT RATES:
90 Gallon 52. 36
CITY MANAGER' S REPORT
MAY 11, 2026 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES ADJUSTMENT FOR FY 2026-027
COMMERCIAL TRASH RATES - PROPOSED RATES:
PAGE 4
Container
Size
One/ Wk Two/ Wk Three/ Wk Four/ Wk Five/ Wk
1 Cu. Yd 128. 96 196. 52 264. 04 331. 49 399. 04
2 Cu. Yd 165. 80 254. 69 349. 79 432.9 521. 37
3 Cu. Yd 210.0 335. 88 484. 57 661. 42 838. 41
4 Cu. Yd 262. 35 432.9 667. 87 9. 03. 38 1134. 57
5 Cu. Yd 324. 73 623. 87 923. 02 1222.5 1484. 53
6 Cu. Yd 385. 01 751. 24 1117. 92 1484. 53 1851. 22
Lg. Cart 54. 94 N/ A N/ A N/ A N/ A
COMMERCIAL RECYCLING RATES - PROPOSED RATES:
Container
Size
One/ Wk Two/ Wk Three/ Wk Four/ Wk Five/ Wk
1 Cu. Yd 103.7 157. 23 211.2 265. 19 319. 23
2 Cu. Yd 132. 63 203. 74 279. 84 345. 99 417. 10
3 Cu. Yd 168.5 268. 70 387. 65 529. 13 670. 73
4 Cu. Yd 209. 87 345. 99 534. 30 722.1 907. 65
5 Cu. Yd 259. 78 499. 09 738. 41 977. 72 1187. 63
6 Cu. Yd 308. 00 600. 99 894. 34 1187. 63 1480. 97
Lg. Cart 54. 94 N/ A N/ A N/ A N/ A
COMMERCIAL ORGANIC WASTE RATES - PROPOSED RATES:
90 Gallon 54. 94
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 2026-027
B. Letter from Republic Services dated April 17, 2026
CITY MANAGER' S REPORT
MAY 11, 2026 CITY COUNCIL REGULAR MEETING
REPUBLIC SERVICES ADJUSTMENT FOR FY 2026-027
APPROVALS:
Sc‘ ko .
PAGE 5
1- 3o. tk•
Todd Sebastian Date
Director of Parks and Recreation
3o/ ZoZio
Cari James Date
Director of Finance
4/) 30/ 767 o
Thomas Hedegard Date
Deputy City Manager
1 1. 3O. 2210
Michael King Date
Assistant City Manager
30 L. o Z
Salvador Navarrete Date
City Attorney
F( D R 5.• i(• zorto
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 26 -
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 2026-027
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 17, 2026, 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. 93% 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, 2026; 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 2026- 2027, pursuant to Section V of the Agreement, and pursuant to Lathrop Municipal Code Section 8. 16.70, but that the City' s franchised solid waste hauler shall not be permitted to charge fees any higher than specified for each customer type listed:
RESIDENTIAL PROPOSED RATES:
30 Gallon 60 Gallon 90 Gallon
Standard 44. 04 47.4 53. 85
Senior 32. 78 35. 19 39. 72
MHP/ Trailer 36. 82 37. 54 43. 20
MHP Senior 27. 63 28. 12 32. 18
Veterans 39. 63 42. 70 48.7
Low Income 35. 24 N/ A N/ A
COMMERCIAL TRASH RATES - PROPOSED RATES:
Container
Size
One/ Wk Two/ Wk Three/ Wk Four/ Wk Five/ Wk
1 Cu. Yd 128. 96 196. 52 264. 04 331. 49 399. 04
2 Cu. Yd 165. 80 254. 69 349. 79 432.9 521. 37
3 Cu. Yd 210.0 335. 88 484. 57 661. 42 838. 41
4 Cu. Yd 262. 35 432.9 667. 87 9. 03. 38 1134. 57
5 Cu. Yd 324. 73 623. 87 923. 02 1222.5 1484. 53
6 Cu. Yd 385. 01 751. 24 1117. 92 1484. 53 1851. 22
Lg. Cart 54. 94 N/ A N/ A N/ A N/ A
COMMERCIAL RECYCLING RATES - PROPOSED RATES:
Container
Size
One/ Wk Two/ Wk Three/ Wk Four/ Wk Five/ Wk
1 Cu. Yd 103.7 157. 23 211.2 265. 19 319. 23
2 Cu. Yd 132. 63 203. 74 279. 84 345. 99 417. 10
3 Cu. Yd 168.5 268. 70 387. 65 529. 13 670. 73
4 Cu. Yd 209. 87 345. 99 534. 30 722.1 907. 65
5 Cu. Yd 259. 78 499. 09 738. 41 977. 72 1187. 63
6 Cu. Yd 308. 00 600. 99 894. 34 1187. 63 1480. 97
Lg. Cart 54. 94 N/ A N/ A N/ A N/ A
COMMERCIAL ORGANIC WASTE RATES - PROPOSED RATES:
90 Gallon 54. 94
Weights in excess of maximum amounts per bin per pick up will be charged an additional $ 8. 00 per extra 100 pounds.
The foregoing resolution was passed and adopted this 11th day of May 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Attachment B
ti REPUBLIC
tiO4 SERVICES
Sustainability in Action
April 17, 2026
Melissa Stathakopoulos
City of Lathrop
390 Towne Centre Dr.
Lathrop, CA 95330
Subject: Annual CPI -Based Rate Adjustment - Effective July 1, 2026 Dear Ms. Stathakopoulos,
Pursuant to Section V, Item F of the Agreement Between the City ofLathrop and Lathrop Sunrise Sanitation Corporation, collection rates are subject to annual review during the month of May and may be adjusted effective July 1st. 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, 2025, through January 1, 2026, the CPI increased by 4. 93%. 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, 2026.
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 of Lathrop
Cina Thompson
Municipal Manager
1145 W Charter Way, Stockton, CA 95206 I RepublicServices. com I Environmental Services, Recycling & Waste 1kR. A REPUBLIC'
14 SERVICES
Lathrop Sunrise Sanitation Trash Rates Effective 7/1/ 25 (Current) 1 YD
2YD
3 YD
4 YD
5 YD
6 YD
LG Cart
1/ WK
122. 90
158. 01
200. 32
250. 02
309. 47
366. 92
52. 36
2/ WK 3/ WK 4/ WK 5/ WK
187. 29 $ 251. 63 $ 315. 92 $ 380. 29
242. 72 $ 333.6 $ 412. 17 $ 496. 87
320. 10 $ 461. 80 $ 630. 34 $ 799. 02
412. 17 $ 636. 49 $ 860. 94 $ 1, 081. 26
594.6 $ 879. 65 $ 1,64. 73 $ 1, 414. 78
715. 94 $ 1, 065. 40 $ 1, 414. 78 $ 1, 764. 2
Lathrop Sunrise Sanitation Recycling Rates Effective 7/1/ 25 (Current) 1/ WK 2/ WK 3/ WK 4/ WK
1 YD $ 98. 32 $ 149. 84 $ 201. 30 $ 252. 73
2YD $ 126. 40 $ 194.7 $ 266. 69
3 YD $ 160. 25 $ 256. 08 $ 369. 44
4 YD $ 200. 01 $ 329. 73 $ 509. 20
5 YD $ 247. 57 $ 475. 64 $ 703.2
6 YD $ 293. 53 $ 572. 75 $ 852. 32
60 Gallon Recycle $ 52. 36
90 Gallon Organic $ 52. 36
329. 73
504. 27
688. 75
931. 78
1,31. 83
5/ WK
304. 23
397. 50
639. 22
865. 01
1,31. 83
1, 411. 39
Residential Service Weekly Recycling and Green Waste Effective 7/1/ 25 (Current) Standard Senior MHP/ Trailer MHP Senior Veterans Low Income 30 gallon $ 41. 97 $ 31. 24 $ 35. 09 $ 26. 33 $ 37. 77 $ 33. 58 60 gallon $ 45. 21 $ 33. 54 $ 35. 78 $ 26. 80 $ 40. 69 N/ A 90 gallon $ 51. 32 $ 37. 85 $ 41. 17 $ 30. 67 $ 46. 19 N/ A 1 YD
2 YD
3 YD
4 YD
5 YD
6 YD
LG. CART
Lathrop Sunrise
1/ WK
128. 96
165. 80
210.0
262. 35
324. 73
385. 01
54. 94
Sanitation Trash Rates Effective
2/ WK 3/ WK
196. 52 $ 264. 04
254. 69 $ 349. 79
335. 88 $ 484. 57
432.9 $ 667. 87
623. 87 $ 923. 02
751. 24 $ 1,17. 92
Lathrop Sunrise Sanitation Recycling
1/ WK 2/ WK
1 YD
2YD
3 YD
4 YD
5 YD
6 YD
60 Gallon Recycle
90 Gallon Organic
103.7
132. 63
168.5
209. 87
259. 78
308. 00
54. 94
54. 94
157. 23
203. 74
268. 70
345. 99
499. 09
600. 99
7/ 1/ 2026 (NEW)
4/ WK
331. 49
432.9
661. 42
903. 38
1, 222. 15
1, 484. 53
Rates Effective
3/ WK
211.2
279. 84
387. 65
534. 30
738. 41
894. 34
7/1/ 2026 (NEW)
4/ WK
265. 19
345. 99
529. 13
722.1
977. 72
1,87. 63
5/ WK
399. 04
521. 37
838. 41
1,34. 57
1, 484. 53
1, 851. 22
5/ WK
319. 23
417. 10
670. 73
907. 65
1,87. 63
1, 480. 97
Residential Service Weekly Trash Recycling and Green Waste Effective 7/1/ 2026 (NEW) 30 gallon
60 gallon
90 gallon
Standard
44. 04
47.4 53. 85
Senior
32. 78
35. 19
39. 72
MHP/ Trailer
36. 82
37. 54
43. 20
MHP Senior
27. 63
28. 12
32. 18
Veterans
39. 63
42. 70
48.7 Weights in excess of these maximum amounts per bin per pick up will be charged an additional $ 8. 00 per extra 100 pounds.
Low Income
35. 24
N/ A
N/ A