June 24, 2025
Economic Development
DATE: June 24, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Shasa Curl, City Manager
Nannette Beacham, Director of Economic Development
Samantha Carr, Environmental Manager
Subject:
New Solid Waste Collection Agreement with Richmond
Sanitary Sewer Services
FINANCIAL IMPACT: Reimbursement of $150,000 in City’s costs associated with developing and negotiating the new Agreement and
continuation of the existing franchise fee. (Account
String: 01362765 Project No.: 2GI01).
PREVIOUS COUNCIL
ACTION:
July 19, 2022, May 2, 2023, July 11, 2023, July 2, 2024, March 25, 2025
STATEMENT OF THE
ISSUE:
The City of Richmond entered into an exclusive Solid
Waste Collection Franchise Agreement (Collection
Agreement) with Richmond Sanitary Service, a
subsidiary of Republic Services, in 1985 and it is set to expire June 30, 2025. The City Council directed City staff to initiate a competitive solicitation process for a new Collection Agreement. On July 2, 2024, City staff-initiated negotiations with the company that submitted the top
ranked proposal, Richmond Sanitary Services Inc, a
subsidiary of Republic Services. City staff recommends City Council approval of the final negotiated Solid Waste Collection Agreement (Agreement) which would be
effective July 1, 2025.
AGENDA
REPORT
June 24, 2025
RECOMMENDED ACTION:
AUTHORIZE the city manager to execute an agreement
with Richmond Sanitary Services inc., a subsidiary of
Republic Services inc., for solid waste collection services and a Collection Agreement Side Letter for use of the
Rate Stabilization funding; ADOPT a resolution to update the 2025 solid waste collection rates beginning July 1, 2025, until the first rate increase in the new Collection Agreement on January 1, 2027; and APPROPRIATE
$500,000 from Fiscal Year 2024-25 to be used in Fiscal
Year 2025-26 upon fully executed Collection Agreement
and Side Letter – Economic Development Department
(Samanatha Carr 510-620-5407).
DISCUSSION:
The City of Richmond’s solid waste and recycling services are subject to two agreements with Richmond Sanitary Services Inc., a subsidiary of Republic Services (RSS): Collection Agreement and Post-Collection Agreement. Additionally, the City contracts with Golden Bear Transfer Services, Inc. (operated by Republic Services) for solid waste transfer services. The City of Richmond entered into an exclusive Solid Waste Collection Franchise Agreement with Richmond Sanitary Service, a subsidiary of Republic Services, in 1985. The Agreement includes the collection of solid waste, recycling, and organic waste generated within City boundaries and is set to expire June 30, 2025.
On January 19, 2022, City staff released a request for qualification (RFQ) to solicit a consultant to provide professional services to analyze the City’s current solid waste collection franchise agreement and advise a course of action. On July 19, 2022, the City Council approved the contract award to R3 Consulting, Inc.
On May 2, 2023, the City of Richmond City Council directed City staff to initiate a competitive solicitation process for their solid waste Collection Agreement. The City of Richmond (in coordination with the City of San Pablo) released a Request for Proposal (RFP) on January 5, 2024. On July 2, 2024, City staff were authorized to enter into negotiations with the company that submitted the top ranked proposal, Richmond Sanitary Services Inc, a subsidiary of Republic Services.
Pre-RFP Community Engagement
Prior to preparing the RFP for new collection services agreement, the City engaged R3 and subcontractor Envirolutions to conduct robust community engagement about solid waste and recycling services in the City. The 2023 Richmond Community Engagement Final Report by Envirolutions outlined a multilingual outreach initiative to assess community awareness and satisfaction with local waste services. Through surveys, workshops, and stakeholder interviews, the project found that while many residents use
June 24, 2025
composting services, there is widespread confusion about proper waste sorting and limited awareness of SB 1383, a key climate law. Spanish-speaking residents, in particular, expressed a need for more translated materials and better access to bulky item disposal.
Key recommendations resulting from community engagement included expanding bulky item pickup to multi-family dwellings, increasing educational outreach in multiple languages, enhancing Dumpster Day logistics, and launching targeted campaigns to raise awareness of SB 1383. The recommended Agreement with Richmond Sanitary Services advanced many of these objectives by providing expanded bulky item pickups to multi-family dwellings, providing increased outreach and education with City involvement, and providing other services enhancements geared at expanding options available to residents for disposition of unwanted waste materials.
Final Agreement Negotiations- Service Enhancements
City staff, with the assistance of R3 Consulting Group, Inc. (R3), proceeded to negotiate the terms and conditions of a final Collection Agreement (Attachment 1). Negotiations were productive, with the final negotiated Collection Agreement providing key benefits to the City’s residents and businesses, including:
General Terms and Conditions:
1. 15-year term from July 1, 2025, through June 30, 2040
2. Two 5-year extensions at City’s option
3. Updated Agreement form, with up-to-date performance and legal standards
4. Preservation of all current programs for residents, businesses, and the City
5. Enhancements to many programs and services for residents, businesses, and the City
6. $150,000 reimbursement for RFP process costs
7. Programs and services required for compliance with SB 1383
Solid Waste Collection Service Rates and Adjustments:
8. Contractor’s Good Will Discount ($5 discount per month) to customers 62 years of age or older or enrolled in a discount utility program
9. No adjustments to initial July 2025 solid waste collection service rates until January 1, 2027
10. Annual adjustments to solid waste collection service rates capped at 5 percent per Consumer Price Index for Water, Sewer, and Trash collection (CPI) starting January 1, 2027, plus incremental, less than $1, adjustments in monthly rates in 2027 and 2026 for zero-emissions vehicle (ZEV)
11. Limitations on future changes in solid waste collection service rates due to changes in law or extraordinary changes in cost
Rate Smoothing and Stabilization:
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12. Use of $500,000 in the City’s solid waste rate-stabilization funds to offset customer rate increases from July 1, 2025, through December 31, 2026 (Attachment 2)
Fleet Electrification:
13. RSS will use zero-emission electric vehicles (ZEV) for solid waste collection vehicles servicing residential and small business collection carts in the City (i.e., “side-loading vehicles”)
14. Seven (7) new side-loaders will be deployed in 2025-26, seven (7) more will be deployed in 2027 and another six (6) will be deployed in 2028
15. The benefits of electrification include reduced air pollutants, fewer carbon emissions, less noise, and a safer working environment for solid waste vehicle operators
New and Enhanced Services for Customers:
16. New bulky waste collection services for multi-family dwellings with 5-20 units (similar to those currently provided to single-family dwellings)
17. Additional large item pickup for single-family dwellings up to four-unit dwellings (3 total)
18. New curbside collection of holiday trees in late December and early January (starting 2025)
19. Expansion of “Large-Scale City Clean-ups” including the use for City Wildfire Prevention Clean-ups and no-cost multi-family dumpster
20. Potential for future ability for customers to share services (pending development of program requirements and changes to City’s Municipal Code)
New and Enhanced Community Services:
21. Bulky item service for City facilities
22. Collection at all City facilities
23. Collection at 40 City sponsored events
New and Enhanced Outreach and Education Services:
24. Enhanced outreach, education, and reporting requirements
25. Newsletters with information about solid waste and recycling
26. Improved container signage to reduce contamination
Regulatory Compliance and Contingencies:
27. Add-on service provisions (would require the City and Contractor agree to a City- Directed Change per Section 30.01) for compliance with SB 1383 and other regulatory requirements if no longer provided regionally
28. Add-on provisions for Household Hazardous Waste (HHW) and other services if no longer provided regionally
29. Add-on provisions for other waste diversion outreach and education services if no longer provided regionally
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Taken altogether, the terms and conditions of the new recommended Solid Waste Collection Agreement with RSS will help ensure that:
Solid waste collection services provided to the City meet current regulatory, legal, and performance standards
Residential and commercial solid waste customers are provided with solid waste collection services that provide multiple means for disposal and recycling of solid waste materials at competitive rates
The City is compensated for its costs associated with managing and administering the Agreement and critical aspects of the solid waste and sanitation system
Solid Waste Rates
Solid waste rates paid by residents and businesses in the City are comprised of two components:
A “collection rate”, which compensates RSS for the collection services provided per the City’s Agreement and is subject to City authorization. A separate “post-collection rate”, which compensates Republic Services for post- collection services provided per the Post-Collection Agreement between Republic Services and the regional joint powers authority, RecycleMore (of which the City is a member agency).
o Authorization of the post-collection rate component is made by vote of the RecycleMore Board of Directors, of which the City has three out of seven voting members
The solid waste collection service rates included in the recommended Agreement with RSS are collection rates only and do not include post-collection rates. Therefore, City Council approval of the recommended Agreement will only affect collection rates.
City of Richmond Proposed Solid Waste Collection Rates
Table 1 below shows a summary of current collection service rates per the existing agreement with RSS compared to the proposed July 1, 2025, January 1, 2027, and January 1, 2028, collection service rates. The collection service rates include the following:
July 1, 2025:
The City’s use of rate stabilization funds to offset customer rates (Attachment 3) Initial collection service rates starting July 1, 2025, will remain in place for eighteen months, through December 31, 2026
o This is to prevent 3 collection rate increases in a 12-month period 1.4 percent to 2.5 percent increase in collection rates for 96 percent of residential customers (lower than cost-of-service because of use of rate stabilization funding). Initial rates include the first step of ZEV funding of +$0.90 per account per month (+$0.87 per cubic yard of trash per account for bin customers).
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Up to 19 percent increase in collection rates for multi-family dwellings and businesses
o Many multi-family dwellings and businesses may potentially reduce costs by reducing waste and right sizing their solid waste services Initial collection service rates starting July 1, 2025, will remain in place for eighteen months, through December 31, 2026
o This is to prevent 3 collection rate increases in a 12-month period Any post-collection solid waste rate adjustments
January 1, 2027:
CPI on initial 18-month base rates (as they were without offset from rate stabilization funding) up to the 5 percent annual ca.
ZEV phase-in charge of +$0.93 per month for customers serviced with carts and +$0.90 per month per cubic yard of trash for customers serviced with bins Any post-collection solid waste rate adjustments
January 1, 2028:
CPI adjustment to 2027 rates, up to the 5 percent annual cap ZEV phase-in charge of +$0.82 per month for customers serviced with carts and +$0.79 per month per cubic yard of trash for customers serviced with bins Any post-collection solid waste rate adjustments
Table 1 - Summary of Maximum Solid Waste Collection Service Monthly Rates through January 1, 2028
Container Size 1-Jan-25
1-Jul-25
(Includes Rate
Stabilization)
1-Jan-27
(Maximum)
1-Jan-28
(Maximum)
20-gal cart
(16% of cart accounts) $32.61 $33.07 $36.51 $39.16
32-gal cart
(80% of cart accounts) $35.92 $36.83 $40.56 $43.41
64-gal cart
(3% of cart accounts) $68.43 $73.77 $80.34 $85.18
96-gal cart
(1% of cart accounts) $101.31 $111.14 $120.57 $127.42
2-cubic yard bin 1x/week $425.26 $501.44 $528.31 $556.31
Table 1, above, shows the current January 1, 2025, actual collection rates and the proposed July 1, 2025, collection rates with Rate Stabilization and the maximum January 1, 2027, and January 1, 2028, collection rates per the recommended Agreement. Table 1 shows the collection rate for residential (single-family and multi- family) cart customers as well as for commercial/multi-family customers subscribing to a 2-cubic yard bin collected once weekly. Note that there are varying cart sizes, so for the purposes of the tables in this report, 32-gallon carts mean 32/35 gallons, 64-gallon carts
June 24, 2025
mean 64/65 gallons, and 96-gallon carts mean 95/96 gallons. Note also that the majority of cart customers subscribe to 20-gallon (16%) or 32-gallon (80%) service level, with 96 percent of cart customers subscribing to these two smallest size service levels.
Table 2, below, shows the maximum monthly dollar increase for each of the years described above (i.e., July 1, 2025, January 1, 2027, and January 1, 2028) as well as the percent change. The July 1, 2025, amount includes Rate Stabilization. These maximum rates take into account the maximum 5 percent adjustment to rates plus incremental adjustments for funding ZEV vehicles (and, for January 1, 2027, only, the cessation of the rate stabilization funding).
The reason that cart rates increase at a higher percentage than the maximum 5 percent adjustment in 2027 and 2028 is twofold:
1) In 2027, rate stabilization for cart rates will no longer be in effect 2) In 2027 and 2028 the incremental per account/per cubic yard charges for ZEV take effect, with greater proportionate charges for cart customers
Table 2 - Summary of Changes in Solid Waste Collection Service Monthly Rates through January 1, 2028
Container Size 1-Jul-25
Percent
Change
(Jan 2025-
July 2025)
1-Jan-27
(Maximum)
Percent
Change
(2025-2027)
1-Jan-28
(Maximum)
Percent
Change
(2027-2028)
20-gal cart $0.46 1.4% $3.44 10.4% $2.65 7.3%
32-gal cart $0.91 2.5% $3.73 10.1% $2.85 7.0%
64-gal cart $5.34 7.8% $6.57 8.9% $4.84 6.0%
96-gal cart $9.83 9.7% $9.43 8.5% $6.85 5.7%
2-cubic yard bin
1x/week $76.18 17.9% $26.87 5.4% $28.00 5.3%
As shown in Table 2, the July 1, 2025, increase in monthly rate for 20-gallon cart customers will be $0.46 (1.4%), with a $0.91 increase (2.5%) for 32-gallon cart customers, a $5.34 increase (7.8%) for 64-gallon cart customers, and a $9.83 increase (9.7%) for 96-gallon customers.
For commercial customers using carts or bins, and for multi-family customers using bins, the July 1, 2025, increase in rates is between 18 percent and 19 percent. Overall, rate increases effective July 1, 2025, are in higher proportion for higher waste generating customers, and lower in proportion for lower waste generating customers. As stated previously, many multi-family dwellings and businesses may potentially reduce costs by reducing waste and right sizing their solid waste services.
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Table 2 identifies the maximum percentage adjustments for January 1, 2027, are approximately 10 percent each for 20-gallon and 32-gallon cart customers, 8.5 percent to 9 percent for 64-gallon and 96-gallon cart customers, and 5.4 percent for bin customers. Similarly, the maximum percentage adjustments for January 1, 2028, are approximately 7 percent each for 20-gallon and 32-gallon cart customers, 5.7 percent to 6 percent for 64-gallon and 96-gallon cart customers, and 5.3 percent for bin customers.
Total Estimated Solid Waste Rates (including Collection and Post-Collection Services)
For purposes of comparison, the total monthly rates shown in Tables 3 and 4 below include:
2025 City of Richmond collection rate services as outlined in Tables 1 and 2 2025 RecycleMore Post Collection Rates
It should be noted that future changes in post-collection rates are anticipated to occur as part of RecycleMore’s process to secure post-collection services effective July 1, 2025, and thereafter, and which will be the subject of future actions of the RecycleMore Board of Directors. At the time of this staff report, the amount of change to the post- collection rates is not known; therefore, no projections of future total estimated rates (inclusive of collection and post-collection rates) are included in this report. A decision will be made at the June 12, 2025, RecycleMore Board meeting. Table 3, below, shows estimates of the total monthly solid waste rates inclusive of proposed collection service rates and current post-collection service rates.
Table 3 - Total Monthly Solid Waste Rates
Container Size 1-Jul-25 Collection Rate
with Rate Stabilization
Current Post-
Collection Charge
1-Jul-25 Total
Monthly Charge
20-gal cart
(16% of cart accounts) $33.07 $7.56 $40.63
35-gal cart
(80% of cart accounts) $36.83 $13.27 $50.10
64-gal cart
(3% of cart accounts) $73.77 $24.66 $98.43
96-gal cart
(1% of cart accounts) $111.14 $37.02 $148.16
2-cubic yard bin 1x/week $501.44 $102.88 $604.32
Table 4 below compares the City’s 2026 total estimated monthly solid waste rates to other local communities. Rates shown for comparison communities are based on current 2025 rates and an assumption that such rates will increase by 5 percent in 2026. The results for residential rates are shown in Table 4 and Chart 1, on the following page - note that the results are in ascending order by 32-gallon service, which is the most commonly subscribed service level. The City’s new maximum solid waste
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collection service rates per the recommended new Agreement compare favorably to other communities.
Table 4 - Comparison of Estimated 2026 Total Residential Monthly Solid Waste Rates
City 20-Gallon 32-Gallon 64-Gallon 96-Gallon
Pleasant Hill $33.31 $38.31 $51.75 $76.98
Martinez $31.06 $44.50 $54.67 $104.15
San Pablo $36.97 $44.93 $85.23 $126.78
Benicia $38.61 $45.38 $56.43 $77.36
Pinole $38.87 $47.93 $91.25 $132.85
Vallejo N/A $50.00 $81.11 $112.23
Richmond $40.63 $50.10 $98.43 $148.16
Hercules $43.57 $50.63 $91.93 $131.80
Concord N/A $53.18 $71.91 $88.18
Oakland $57.07 $64.79 $114.30 $171.76
Berkeley $51.30 $67.66 $93.60 $112.47
Albany $62.93 $70.46 $121.78 $173.07
El Cerrito $54.38 $71.62 $142.23 N/A
Chart 1 - Comparison of Estimated 2026 Residential Monthly Solid Waste Rates
$0
$50
$100
$150
$200
20-Gallon 32-Gallon 64-Gallon 96-Gallon
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Table 5, below, shows the comparison of estimated 2026 monthly solid waste rates for the common subscription size of two (2) cubic yard serviced once weekly. It should be noted that the rates shown for the City of Richmond include baseline levels of recycling and organics service - this may not be the case for all communities listed, where such services may be charged additional rates.
Table 5 - Comparison of Estimated 2026 Commercial 2 Cubic Yard Monthly Solid Waste Rates
City 2 Cubic Yards Weekly
Pleasant Hill $335.22
Berkeley $376.08
Martinez $475.38
Concord $481.16
Oakland $529.45
Pinole $551.92
Albany $554.27
San Pablo $574.62
Richmond $604.32
Hercules $625.79
Vallejo $849.50
El Cerrito $925.28
Permissive Language Authorization
For any aspects of the proposed contract between the City and RSS, the City Council will grant one-time permissive language authority to the City Attorney’s Office to finalize said agreement as all major salient provisions of the proposed contract are hereby authorized via adopted City Council Resolution.
FISCAL IMPACT
Within thirty days of contract execution, the Agreement provides that RSS will pay the City $150,000 to compensate the City for its costs associated with the request for proposals and contract negotiation process. This payment will cover the City’s cost share for R3’s consulting services associated with these activities per the MOU with the City of Richmond as well as City’s staff and legal costs associated with the new Agreement. Additionally, the City will issue payments of up to $500,000 to support residential rate stabilization.
Richmond Sanitary Service will continue to pay a Franchise Fee to the City to cover the City’s costs of providing solid waste administration, management, service, and regulatory oversight as well as charges for the use of government property, impacts to road pavement, and illegal dumping.
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SYNERGISTIC POLICIES:
Climate Action Plan:
Strategy SW 1: Establish a Zero Waste Framework
Strategy SW 2: Increase Participation in Recycling Programs and Incentives Strategy SW 3: Supportive Garbage Collection Service Rates and Schedules
General Plan 2030:
Policy EC3.3 Solid Waste Reduction and Recycling. Promote waste reduction and recycling to minimize materials that are processed in landfills
DOCUMENTS ATTACHED:
Attachment 1 – Final Draft Solid Waste Collection Agreement with Richmond Sanitary Service, Inc.
Attachment 2 – Rate Stabilization Funding Side Letter
Attachment 3 – Resolution authorizing the City Manager to Finalize and Execute the Solid Waste Collection Agreement with Richmond Sanitary Service, Inc.