Prop 218 Protest Hearing for 2026
Solid Waste Rates
Increase Proposal
March 16, 2026
1 Jack Johnson, Waste Management Supervisor
Request of City Council
2 • Conduct the 218 Protest Hearing
• If a majority protest does not exist, approve the 2026 solid waste collection rates included in the Prop 218 notice and available on the City’s website
Annual Rate Review Process
• Council reviews and approves fees
for all solid waste services.
• City follows CA Proposition 218
process.
• Rates must be based on the cost of
service.
3 The Solid Waste Process & What Rates Cover
4 Background
• 2006 progressive “Pay as You Throw” system adopted
• 2016 & 2022 State imposed recycling and organics mandates • Proposition 218 - “...fees and charges must be proportional to the cost of providing the service attributable to the parcel…” • Cost increases in 2026 are lower than those in 2024 and 2025. Yet increases collectively exceed the rate of inflation.
5 Review of 2025 Council Direction
• City deferred the portion of Recology increases that exceeded 5% ($331,333) to 2026.
• City used $400,000 from Solid Waste fund to reduce balancing account with Recology.
• City increased Residential rates by $7.50-9.00 per month. • City increased the 20-gallon and 32-gallon rates for both Commercial Solid Waste and Commercial Organic carts.
6 2026 Revenue Requirement
§ Recology collection costs are increasing 4.4% for 2026 § Inflationary increases allowed in the franchise agreement § Additional increases from 2025 cap carry forward amount § Disposal and Processing costs are increasing 7.5%
§ Increase is approximately $785,000 over 2025
§ 5% due to increased Rethink Waste Tipping Fees, 2.5% due to increased disposal volumes
§ City Fees – solid waste program, street sweeping, franchise fees § Increased approximately $625,000 from 2025
§ Suspended annual collection of landfill closure fees and trash capture device funding 7 2026 Revenue Requirement Overview
8 Revenue Increases/
Reserves Required to
Address Shortfall
2026 Solid
Waste Rate
Realignment
Process
Long Term Plan to Realign Rates to Cost of Service which began in 2021 9 % Variance from COS Rate
2022 2023 2024 2025 2026
0%
50%
100%
150%
200%
250%
% Progress Toward COS Over Time
20-gal 32-gal 64-gal 96-gal
Recommended Increases Residential Rates and
to Address Cost of Service
10 Note: No increases are proposed for Commercial customers.
SW Cart
Size
Residential
Accounts
Proposed
Rate
$
Change
%
Change
20 Gallon 19.5% 4,061 $42.09 $6.00 16.6%
32 Gallon 55.0% 11,419 $52.18 $6.25 13.6%
64 Gallon 22.1% 4,593 $78.93 $6.50 9.0%
96 Gallon 3.4% 707 $107.24 $4.16 4.0%
Residential Rate Comparison (20-gallon)
*All current rates reflect
2026 unless noted.
Average excludes
proposed San Mateo rate.
$6.00/month increase
assumed for San Mateo.
11 Foster City
Burlingame
San Carlos
San Mateo (current)
Belmont
San Mateo (proposed)
Redwood City
Unincorporated County
No. Fair Oaks
Menlo Park
West Bay SD
Hillsborough
$ 32.30
$ 34.77
$ 35.16
$36.09
$ 41.03
$ 42.09
$ 44.87
$ 45.62
$ 46.02
$ 50.31
$ 56.43
$ 68.83
Cost of Service = $59.03
*
Residential Rate Comparison (32-gallon)
12 *All current rates reflect
2026 unless noted.
Average excludes
proposed San Mateo rate.
$6.25/month increase
assumed for San Mateo.
Burlingame
Foster City
San Mateo (current)
No. Fair Oaks
Belmont
San Mateo (proposed)
San Carlos
Unincorporated County
Menlo Park
Redwood City
West Bay SD
Hillsborough
$ 38.62
$ 42.64
$ 45.93
$46.02
$ 48.95
$ 52.18
$ 52.53
$ 54.22
$ 58.64
$ 58.86
$ 63.75
$ 75.15
Cost of Service = $65.81
*
Residential Rate Comparison (64-gallon)
13 *All current rates reflect
2026 unless noted.
Average excludes
proposed San Mateo rate.
$6.50/month increase
assumed for San Mateo.
Foster City
San Mateo (current)
Menlo Park
Burlingame
No. Fair Oaks
San Mateo (proposed)
Unincorporated County
San Carlos
West Bay SD
Redwood City
Hillsborough
Belmont
$ 70.14
$ 72.43
$ 73.93
$ 77.26
$77.36
$ 78.93
$ 80.00
$ 80.01
$ 82.29
$ 86.20
$ 96.89
$ 97.76
Cost of Service = $87.43
*
Residential Rate Comparison (96-gallon)
14 *All current rates reflect
2026 unless noted.
Average excludes
proposed San Mateo rate.
$4.16/month increase
assumed for San Mateo.
Menlo Park
Foster City
San Mateo (current)
San Carlos
No. Fair Oaks
West Bay SD
San Mateo (proposed)
Unincorporated County
Redwood City
Burlingame
Hillsborough
Belmont
$ 92.21
$ 97.67
$ 103.08
$ 103.38
$105.26
$ 107.10
$ 107.24
$ 109.27
$ 113.31
$ 114.65
$ 125.28
$ 146.64
Cost of Service = $107.24
*
Solid Waste Rates - Summary
• Rates must cover the cost of solid waste services
• Rates can not be progressively “pay-as-you-throw”
• Proposed 2026 rates move the City closer to compliance • Additional increases will be needed in future years
• SBWMA Capital Improvements
• Zero Emission Vehicles Infrastructure
15 Staff Recommendation
• Staff recommends the following 2026 rates for Residential solid waste subscriptions:
16 SW Cart
Size
Residential
Accounts
Proposed
Rate
$
Change
%
Change
20 Gallon 19.5% 4,061 $42.09 $6.00 16.6%
32 Gallon 55.0% 11,419 $52.18 $6.25 13.6%
64 Gallon 22.1% 4,593 $78.93 $6.50 9.0%
96 Gallon 3.4% 707 $107.24 $4.16 4.0%
Rate Adoption Timeline
17 12 Jan. 2026
Council approval to mail public notice
16 Jan. 2026
45-day public notice mailing deadline
16 Mar. 2026
City Council Public Hearing
1 Apr. 2026
Rates effective, if adopted
Request of Council
• Ask clarifying questions
• Conduct the 218 Protest Hearing
• If a majority protest does not exist, approve the 2026 solid waste collection rates included in the Prop 218 notice, the resolution, and available on the City’s website
18 www.cityofsanmateo.org/publicworks
Stewards of your infrastructure
330 W. 20th Avenue
San Mateo, CA 94403
650-522-7300
Thank you for your time.Thank you for your time.
You can reach me at:
[email protected]
(650) 522-7346
19