TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Amber Shah, Parks & Public Works Director/City Engineer DATE: September 10, 2025
SUBJECT: CONSIDERATION OF SOLID WASTE SERVICES RATES TO BE EFFECTIVE OCTOBER 1, 2025, WITH ANNUAL
ADJUSTMENTS EACH JULY 1 THEREAFTER FOR A FIVEYEAR PERIOD; HOLD PUBLIC HEARING ON SOLID WASTE SERVICES RATES TO BE EFFECTIVE OCTOBER 1, 2025,
WITH ANNUAL ADJUSTMENTS EACH JULY 1 THEREAFTER
FOR A FIVE-YEAR PERIOD, CONSIDER PROTESTS, AND
ADOPT RESOLUTION NO. R-25-27 ADOPTING SOLID
WASTE SERVICES RATES EFFECTIVE OCTOBER 1, 2025,
WITH ANNUAL ADJUSTMENTS BEGINNING JULY 1, 2026,
THROUGH JULY 1, 2030
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government
Efficient, Responsive, and Effective City Services
BACKGROUND
The City issued a Request for Proposals for Solid Waste and Recycling Services (RFP) on April 11, 2025. The RFP process included issuance of the RFP, evaluation of proposals received, and award of a new Solid Waste and Recycling Agreement to Valley Vista Services (“Valley Vista”) on May 21, 2025.
Valley Vista began providing services in San Marino on May 31, 2025.
Due to the compressed timeframe for the RFP process, Valley Vista is required to utilize the previous contractor’s rates for the period May 31, 2025, through September 30, 2025, to allow the City the necessary time to conduct the Proposition 218 process to establish new rates.
Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
2 The City is holding a public hearing to consider adopting increases to the Solid Waste Services rates to fund the costs for collection and handling of trash, recycling, and organic (including yard trimmings and food scraps) waste services within the City (collectively “Solid Waste Services”). If the proposed Solid Waste Services Rates are approved, the new rates would go into effect October 1, 2025.
The San Marino City Council will hear and consider all materials and testimony as well as all written protests from property owners (which includes tenants who are directly responsible to pay the rates) concerning the proposed rate increases. At the close of the public hearing, the City Council may adopt new rates if written protests against the proposed increases are not presented by a majority of identified parcels upon which the proposed rates are to be charged. If adopted, the new rates shall be effective October 1, 2025, through June 30, 2026, with annual rate adjustments each July 1 thereafter for a fiveyear period, through and including adjustments effective July 1, 2030.
DISCUSSION
The proposed rates for solid waste and recyclables collection services are based upon the City’s new Solid Waste Services Agreement with Valley Vista.
The rates for monthly service are for three customer types: (i) backyard residential with cart service; (ii) backyard residential with bin service; and (iii) commercial and multi-family service. The rates for Solid Waste Service for each customer type are determined based on: (i) the size and number of the containers serving the property; (ii) the materials accepted in the container (e.g., trash, recyclables, or organic waste); and (iii) the frequency of pickups per week.
In 1996, California voters approved Proposition 218, which added Section 6 of Article XIII D to the California Constitution. Proposition 218 authorizes cities to approve certain types of “property related” fees only if they meet specified substantive criteria that the fees do not exceed the City’s proportionate cost of providing the service to property owners, and only after considering property owner comments and protests at a public hearing with at least 45 days prior mailed notice. The City is conducting this Proposition 218 majority protest proceeding in order to maximize opportunities for public input even if arguments may be made that Proposition 218 does not apply to Solid Waste Service.
The City mailed a Proposition 218 notice to all affected property owners on July 26, 2025, (Attachment 2). The Proposition 218 notice included information regarding the public hearing, the rate increases and the new Solid Waste Services rates. The Proposition 218 notice also identified the City’s website where supplemental details were made publicly available, including the City’s Annual Rate Adjustment Methodology describing the adjustments that will be made each July 1 through 2030. In addition, the City published information regarding the Proposition 218 public hearing for Solid Waste 3 Services rates in the San Marino Tribune on August 21, 2025, and on August 28, 2025.
The Proposition 218 notice, the Annual Rate Adjustment Methodology (which is in Attachment 3 and also described below), and the new Solid Waste Services Rates (Attachment 5) were posted on the City’s website.
Rate Increases
The costs to collect and handle solid waste have increased due to State law requirements (especially SB 1383) to divert significantly more trash, recyclable materials, food scraps and yard waste (organics) from landfills than are currently being diverted.
Revenues derived from the Solid Waste Service Rates are used for the purpose of (1) paying costs incurred to protect the health, safety and welfare of the public by providing efficient solid waste and recycling service; and (2) ensuring continued compliance with State laws. These costs include but are not limited to, trash, recycling and organic waste pick-up, transportation, processing, and disposal, plus facilities and equipment maintenance, the implementation of state-mandated landfill diversion programs, capital projects and financing, and billing and account management.
The Proposition 218 process to approve the new Solid Waste Services Rates requires the City Council to hold a public hearing to consider the new Solid Waste Services Rates and to provide the property owners and tenants responsible for payment for the Solid Waste Services Rates an opportunity to submit a written protest.
Written Protests
Any property owner whose property will be subject to the imposition of the proposed Solid Waste Services Rates and any tenant directly responsible for the payment of such rates (i.e. a customer of record) may submit a written protest to the proposed changes. Oral, telephonic and e-mail protests will not be accepted.
A valid protest must include all of the following information:
1. Be submitted in paper form by mail or in person;
2. Clearly state that the property owner (or tenant directly responsible for payment of solid waste rates) opposes the proposed solid waste and recycling rates;
3. Service address, Assessor parcel number (APN), or customer account number;
4 4. Upon request from the City, written evidence (example: current copy of a utility bill) that (a) the person is the property owner (if the person was not shown on the County of Los Angeles’ last equalized assessment roll as the property owner) or (b) that the person is a tenant who is currently residing at the property and is directly responsible for the payment of Solid Waste Services Rates; and
5. Name and signature of the property owner or tenant submitting the protest (photocopies will not be accepted).
Only one (1) protest will be counted per parcel. Owners of multiple parcels may file one (1) protest for each parcel owned within the City. Since protests must be received by mail or in person, any protest submitted by email will not be counted. If timely written protests are received from owners of a majority of parcels (50%+1) within the City, the proposed Solid Waste Service Rates will not be implemented.
Written protests must be submitted by mail or in person to the City Clerk’s Office, or during the public hearing on September 10, 2025. If submitted during the public hearing, the protests must be received by the City Clerk prior to the conclusion of the public comments portion of the Public Hearing on the proposed Solid Waste Services rates.
The City Clerk will determine the validity of all protests submitted and exclude any invalid protests from the final tabulation. The City Clerk may confer with the City Attorney in determining the validity of written protests. As part of this process, the City Attorney may view contested or suspect protest forms. The City Clerk’s decision shall be final and binding.
Proposed Rates
State law SB 1383 requires the collection and processing of trash, recyclable and organic (yard trimmings and food scraps) materials in order to divert as much material as possible from landfill disposal. To comply with SB 1383, most California jurisdictions implement a three-container (3) collection system with separate containers for trash, recyclables and organic materials.
Valley Vista owns and operates a State-designated High Diversion Organic Waste Processing Facility (“High Diversion Facility”) called the Grand Central Recycling and Transfer Station located in the City of Industry, CA. Use of the High Diversion Facility, allows for the jurisdictions served by Valley Vista to implement a two-container (2) collection system with one (1) container for trash and recyclables and a second (2) container for organic (yard trimmings and food scraps) materials.
The following Tables 1-4 show the proposed rates for two-container (2) service. A full listing of the proposed Solid Waste Service Rates is provided in Attachment 5.
5 Residential Customers with Backyard Cart Service –
Two–Container Service
Residential customers with backyard cart service will be charged a base rate identified in Table 2. The base Residential rate provides 96 gallons of service for each type of material (combined trash/recyclables, and organics) for each customer for a total of 192 gallons per week. Each customer decides on the size(s) and number(s) of carts they desire, from the list in Table 1 below.
Residential customers with backyard cart service may choose one (1) of the three (3) cart configurations from each column.
Table 1. Cart Configurations for Residential Backyard Service Customers – Base Rate
Trash/Recyclables Cart(s) Organics (Yard Trimmings/Food Scraps) Cart(s)
One (1) 96-gallon cart OR One (1) 96-gallon cart OR
One (1) 65-gallon cart and one (1)
32-gallon cart OR
One (1) 65-gallon cart and one (1)
32-gallon cart OR
Three (3) 32-gallon carts Three (3) 32-gallon carts
Included in Table 2 below are the proposed rates for Residential customers with backyard cart service. Table 2 lists the Residential Base Rate for Backyard Cart Service and Extra Cart charges, if a Residential customer requests an extra cart.
Table 2: Proposed Residential Backyard Cart Service Solid Waste Service Rates (including trash/recycling and organics) Per Month to be effective October 1, 2025 - Two-Container Service
Service Description Current
Rate
Rate
Change
Proposed
Rate
Residential Base Rate for
Backyard Cart Service $53.54 $4.27 $57.61
Extra Trash/Recyclables Cart No Charge N/A $35.08
Extra Organics (Yard
Trimmings/Food Scraps)
Cart
No Charge N/A $14.00
Rates listed in Table 2 are monthly rates for once per week pickup. 6 Residential Customers with Backyard Bin Service –
Two-Container Service
Residential customers with backyard bin (i.e. a 1, 1.5, 2, 3, or 4 cubic yard dumpster) service will be required to have two containers: one container for trash/recyclables and one container for organics (yard trimmings/food scraps). Based upon the types of materials, a Residential customer with backyard bin service may choose from the bundled container configurations at the rates listed below.
Table 3: Proposed Residential Estate Backyard Bin Service Solid Waste Services Rates (including trash/recycling and organics) per Month to be effective October 1, 2025 - Two-Container Service Bundled Container Configuration for Residential
Customers with Backyard Bin Service
Proposed
Rates
Bundle 1: One (1) 1-cu yd bin for trash/recyclables and one (1) 96-gallon cart for organics (yard trimmings/food scraps) $200.58 Bundle 2: One (1) 1.5-cu yd bin for trash/recyclables and one (1) 96-gallon cart for organics (yard trimmings/food scraps)
$211.28
Bundle 3: One (1) 2-cu yd bin for trash/recyclables and one (1) 96-gallon cart for organics (yard trimmings/food scraps) $221.97 Bundle 4: One (1) 3-cu yd bin for trash/recyclables and one (1) 96-gallon cart for organics (yard trimmings/food scraps) $244.83 Bundle 5: One (1) 4-cu yd bin for trash/recyclables and one (1) 96-gallon cart for organics (yard trimmings/food scraps) $264.75 Bundle 6: One (1) 1-cu yd bin for organics (yard
trimmings/food scraps) and one (1) 96-gallon cart for
trash/recyclables
$123.75
Bundle 7: One (1) 1.5-cu yd bin for organics (yard
trimmings/food scraps) and one (1) 96-gallon cart for
trash/recyclables
$133.61
Bundle 8: One (1) 2-cu yd bin for organics (yard
trimmings/food scraps) and one (1) 96-gallon cart for
trash/recyclables
$165.81
Rates listed in Table 3 are monthly rates for once per week pickup.
The rates for extra pickups (more than one time per week) for bins at Estates are shown in Attachment 4. Attachment 4 describes how the rates were determined based upon the rates identified in the Proposition 218 notice for weekly bundled backyard bin and cart service above in Table 3, less the cost for collection of the cart included in each bundle.
7 Commercial and Multi-Family Customers – Two-Container Service Below in Table 4 is a listing of several common rates for Commercial and MultiFamily customers.
Table 4: Proposed Commercial and Multi-Family Rates for the Most Common Commercial and Multi-Family Service Levels to be effective October 1, 2025 - Two-Container Service
Service Description Current Rate Rate Change Proposed
Rate
3-cu yd
trash/recyclables bin N/A N/A $257.12
4-cu yd
trash/recyclables bin N/A N/A $275.02
65-gallon organics
(yard trimmings/food
waste) cart
$138.37 -$79.79 $58.58
1.5-cu yd organics
(yard trimmings/food
waste) bin
N/A N/A $93.79
2-cu yd organic (yard
trimmings/food waste)
bin
N/A N/A $153.25
Rates listed in Table 4 include monthly, one day per week pickup.
The full list of the proposed Solid Waste Services rates is contained in Attachment 5.
Future Rate Adjustments
If the Solid Waste Services Rates are approved by the City Council following the public hearing on September 10, 2025, the rates shall be effective October 1, 2025. The rates are subject to annual adjustments beginning on July 1, 2026, and each July 1 thereafter for a period of five (5) years through July 1, 2030. Although no additional public hearing is required for these annual adjustments, no annual adjustment will be effective until at least 30 days after a notice is provided to Customers in accordance with Government Code Section 53756. Each annual adjustment shall be as necessary to address inflationary factors in accordance with the formula set forth in the City’s Agreement with Valley Vista, and based on the calculation of the costs components of each rate, as follows:
(1) the collection component of the rates will be adjusted based on the annual percentage change (January-December) in the
Producer Price Index (“PPI”);
8 (2) the change in landfill disposal charges, recycling sorting and marketing charges, and organics processing charges will be adjusted by actual changes in the costs charged for use of those facilities;
(3) changes in the weight of trash, recyclables, and organics generated by each resident and business each year will be factored into the annual rate adjustment.
(4) The city’s regulatory compliance costs will be ‘trued-up’ to actual costs each year.
Attachment 3 includes a full description of the Annual Rate Adjustment Methodology.
Procedures for Public Hearing
1. Public Hearing – Protest Tabulation and Establishing Solid Waste Services Rates
After receiving spoken testimony from the public during the hearing, the City Council will provide a final opportunity for any submittal of a written protest prior to closing public testimony. The City Council should then request from the City Clerk, or designee, the number of written protests received prior to the close of the public hearing. The City Clerk will identify if a recess will be needed to complete the tally of timely written protests.
In addition, the City Council may take a brief recess to review any protests received prior to the close of the public hearing. Under Proposition 218, the City Council may not approve the new Solid Waste Services Rates if there is a majority protest to the proposed rates. A majority protest exists if written protests are timely submitted prior to the close of the public hearing by the owners of a majority (50% plus 1) of the parcels subject to the proposed new Solid Waste Services Rates. There are a total of 4,516 parcels in San Marino subject to the proposed new Solid Waste Services Rates.
Upon the conclusion of the protest tabulation, the City Clerk or designee, shall report the results of the tabulation to the City Council. If a majority protest exists then the City Council is precluded from proceeding with the proposed new Solid Waste Services Rates. However, if a majority protest does not exist, then the City Council may move forward with consideration of Resolution No. R-25-27 Establishing Solid Waste Services Rates Effective October 1, 2025, with Annual Updates each July 1 for a Five-Year (5) Period Beginning July 1, 2026.
The recommended Resolution No. R-25-27 sets the maximum Solid Waste Services Rates effective October 1, 2025, with Annual Adjustments through July 1, 2030. The rates shall be adjusted annually based on the attached 9 Annual Rate Adjustment Methodology (Attachment 3) and the terms of the City’s Agreement with Valley Vista.
2. Consideration of Resolution No. R-25-27 Adopting the Solid Waste Services Rates effective October 1, 2025, with annual updates through July 1, 2029.
Staff is recommending the approval of Resolution No. R-25-27 which sets the Solid Waste Services Rates effective October 1, 2025, with annual adjustments on July 1 beginning July 1, 2026, and continuing for a five-year (5) period. The rates shall be adjusted annually based on the attached Annual Rate Adjustment Methodology (Attachment 3) and the terms of the City’s Agreement with Valley Vista.
CEQA REVIEW
The proposed action to approve the proposed new Solid Waste Services Rates (the "proposed activity") was reviewed in accordance with the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., "CEQA") and the CEQA Guidelines (14 California Code of Regulations §§15000, et seq.).
1. The proposed action is not subject to CEQA pursuant to Public Resources Code Section 21080(b)(8), and California Code of Regulations Section 15273 (of the CEQA Regulations) because it establishes, modifies, structures, or restructures, and approves rates and charges for the purposes of: (1) meeting operating expenses; (2) purchasing supplies, equipment and materials; (3) meeting financial requirements; and (4) obtaining funds for capital projects necessary to maintain service within existing incorporated City limits.
FISCAL IMPACT & PROCUREMENT REVIEW
The Solid Waste Services Rates include a City Regulatory Compliance Cost. If the proposed Solid Waste Services rates are approved, Valley Vista will remit to the City the monthly Regulatory Compliance Cost component of $35,000 to offset the City’s regulatory compliance, monitoring, reporting, contract management, and SB 1383 implementation costs.
The Finance Director has reviewed this staff report for compliance with San Marino City Code §02.06.05.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form. 10 RECOMMENDATION
Staff recommends that the City Council:
Hold the Public Hearing and consider public testimony regarding Solid Waste Services Rates effective October 1, 2025, with annual adjustments each July 1 for a period of five years beginning July 1, 2026;
Consider public comments and timely written protests, and if no majority protest is received, adopt Resolution No. R-25-27 determining that the adoption of the proposed Solid Waste Services rates is exempt from the California Environmental Quality Act (CEQA) and adopting the proposed Solid Waste Services Rates to be effective October 1, 2026, with annual adjustments for a period of five years beginning July 1, 2026.
If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to adopt Resolution R-25-27 of the City Council of the City of San Marino, 1) determining the adoption of the proposed Solid Waste Services Rates is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080(b)(8) and Section 15273 of Title 14, Chapter 3 of the California Code of Regulations, and 2) approving the proposed Solid Waste Services Rates effective October 1, 2025, with annual adjustments beginning July 1, 2026, and each July 1 thereafter for a period of five years.”
ATTACHMENTS
1. Draft Resolution No. R-25-27
2. Proposition 218 Notice
3. Annual Rate Adjustment Methodology
4. Rates for Extra Pickups of Estate Bins
5. Proposed Solid Waste Services Rates