December 17, 2024
Economic Development
DATE: December 17, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Nannette Beacham, Director of Economic Development Samantha Carr, Environmental Manager
Subject:
Annual Solid Waste Rate Adjustment
FINANCIAL IMPACT: There is no significant financial impact to the City’s General Fund.
PREVIOUS COUNCIL
ACTION:
December 7, 2021, December 6 , 2022 , December 19,
2023
STATEMENT OF THE
ISSUE:
The Franchise Agreement between the City of Richmond
and Republic Services provides for an annual adjustment based on the Consumer Price Index (CPI) and bulky item
pick-up program participation.
RECOMMENDED ACTION: ADOPT a resolution to update the 2025 solid waste collection rates for January 1, 2025 until the end of the current contract on June 30, 2025 – Economic
Development (Samantha Carr 510-620-5407/ Nannette
Beacham 510-620-1306).
DISCUSSION:
The City of Richmond’s solid waste and recycling services are provided by two agreements with Republic Services: 1) a collection franchise agreement managed by the City of Richmond; and 2) a post-collection agreement managed by the West Contra Costa Integrated Waste Management Authority (“RecycleMore”). Pickup rates are set at the end of the year based on Consumer Price Index (CPI) adjustments.
AGENDA
REPORT
December 17, 2024
Adjustments to the 2025 solid waste collection rate include: a) CPI adjustment; and, b) the bulky item program adjustment charges. Approximately 77 percent of Richmond customers subscribe to the 35-gallon trash cart service. These rates will be in effect from January 1, 2025, until the end of the current contract term on June 30, 2025.
Starting July 1, 2025, there will be new rates as determined by the new Solid Waste Franchise Agreement (subject to City Council approval in 2025). The new agreement is currently being negotiated.
The 2025 financial impact for solid waste collection services for the 35-gallon residential cart service will amount to: a) CPI increase of $1.13 per month; and b) bulky item adjustment increase of $0.06, for a total collection increase of $1.19. In addition, the post-collection agreement results in an increase of $0.34 per month for 35-gallon trash cart service. The overall total rate increase of the solid waste collection and post collection services is a total of $1.53. A summary of the residential and commercial collection and post-collection rates for the 2025 calendar year are noted below in Tables 2 and 3 as well as in Attachments 1 and 2.
CPI Adjustment
Pursuant to the collection Franchise Agreement between the City of Richmond and Republic Services, the City is obligated to adjust the solid waste collection rates on an annual basis according to the change in the CPI. The attached letter from Republic Services provides an official notice of the percentage increase (Attachment 2).
City Council adoption of the resolution updates and formalizes the 2025 solid waste collection rates (Attachment 1). The terms of the City’s collection Franchise Agreements with Republic Services state the collection rates are to be adjusted by the CPI. The indicated October 2023 to October 2024 CPI change for the San Francisco-Oakland- Hayward Metropolitan Area is 2.39 percent.
The collection service portion of the residential and commercial rates is being adjusted by 2.39 percent. Under terms of the 2014 Franchise Agreement Amendment which terminates on June 30, 2025, City staff members negotiated a cap on CPI increases for residential customers at 3.25 percent annually with overages carried over to the next year. There is a total residential CPI carryover of 2.83 percent from the previous rate- setting year. There will be 0.86 percent added to the 2025 rate for a total residential CPI of 3.25 percent.
Additionally, the Senior 35-gallon rate will be increased by $1.19, exactly $1.00 less than the regular 35-gallon rate per the Franchise agreement.
Post-Collection Rate Adjustment
On November 7, 2024, the Regional RecycleMore Board approved post-collection rate adjustments as shown below in Table 1. The approved RecycleMore resolution is included as Attachment 3.
December 17, 2024
Table 1: Post Collection Agreement Percent and Dollar 2025 Rate Increase
Percent Increase from 2024 Dollar Increase from 2025
Residential Sector
(35 Gallon Cart)
2.6% $0.34 Per Month
Commercial Sector 0.8% $0.10 Per Cubic Yard
Industrial Sector 5.5% $11.29 Per Ton
Table 2: 2025 Residential Service Rates (Monthly)
CITY OF RICHMOND
2025 RESIDENTIAL SERVICE RATES (January 1, 2025- June 30, 2025) 2024
Collection
Rate
2025
CPI 3.25%
*
Adjust
2025
Bulky
Item
Charge
2025
Senior
Rate
Adjust
2025
Collection
Charge
2025 Post
Collection
(IRRF)
Surcharge
2025
Total
Combined
Monthly
Rate
20-
gallon
$31.53 $1.02 $0.06 32.61 7.56 40.17
Senior
20-
gallon
29.79 0.97 $0.06 30.82 7.56 38.38
35-
gallon
34.73 1.13 $0.06 35.92 13.27 49.19
Senior
35-
gallon
33.73 1.10 $0.06 $0.03 34.92 13.27 48.19
65-
gallon
66.22 2.15 $0.06 68.43 24.66 93.09
95-
gallon
98.06 3.19 $0.06 101.31 37.02 138.33
Richmond Residential Rates
*CPI 2.39% + 0.86% CPI carryover from 2024=3.25%
Table 3: 2025 Commercial Rates (Monthly)
December 17, 2024
Bulky Item Participation
An enhanced bulky item collection service was included in the 2014 Franchise Agreement for residential customers. Residential customers may schedule a pick-up for bulky items (up to three items) at no additional cost once per year by calling Republic Services at (510) 262-7100. The program aims to reduce or prevent illegal dumping by providing a bulky item collection service to ratepayers and incorporating the costs into the monthly rates. Bi-lingual participation flyers are included as bill inserts twice per year to encourage participation (below right). Illegal dumping postcards are also posted around City Hall and City facilities (below left). For more information about the program visit, www.richmondenvironment.org.
In 2024, the number of participant households slightly increased from 9.4 percent to 9.8 percent. The slight increase in participation will result in a $0.06 per month rebate of solid waste collection rates for the 2025 calendar year. The data can be viewed on the city’s Transparent Richmond website.
December 17, 2024
Graph 1: Republic Services Bulky Item Pick-up Program Participation: Program Start in 2015 to 2024
source: bulky item pickups | transparent richmond
DOCUMENTS ATTACHED:
Attachment 1 – Resolution Updating Solid Waste Service Rates Attachment 2 – Republic Services CPI Adjustment Notice
Attachment 3 – RecycleMore Resolution 24-04 Approving 2025 Post-Collection Rate Adjustment