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Agenda-Item-Number-7-SCRR-Annual-Rate-Adjustment

Sebastopol City Council
April 21, 2026

Document
Agenda-Item-Number-7-SCRR-Annual-Rate-Adjustment
Meeting
April 21, 2026
Body
Sebastopol City Council
Pages
13
Original file
6.6 MB
Text extracted from the city's file for reading and search. Open the original on www.cityofsebastopol.gov. That file is the official record.

CITY OF SEBASTOPOL CITY COUNCIL
AGENDA ITEM REPORT FOR MEETING OF: April 21, 2026
=========================================================================================== To: Honorable Mayor and City Councilmembers
From: Oriana Hart – Public Works Director
Responsible Department: Public Works
Subject: Sebastopol Solid Waste Collection Services - Annual Rate Adjustment for Sonoma County Resource Recovery LLC
=========================================================================================== RECOMMENDATIONS:

Staff recommends that the City Council adopt a resolution approving an adjustment to garbage collection rates, effective July 1, 2026, as presented in this report, in order to maintain cost recovery, ensure service reliability, and address increased operational expenses.

EXECUTIVE SUMMARY:

Sonoma County Resource Recovery, LLC (SCRR), the City’s franchised solid waste hauler, has submitted its annual rate adjustment request for the rate year commencing July 1, 2026 through June 30, 2027. The requested adjustment results in a 3.82% overall increase to the maximum solid waste collection rates.

The adjustment is calculated in accordance with the Refuse Rate Index (RRI) methodology established in the Solid Waste Collection Agreement between the City of Sebastopol and SCRR. The increase reflects documented increases in collection services costs, garbage disposal fees, organic and food waste diversion costs, and recyclable material processing costs, including regional waste reduction and compliance programs such as Zero Waste Sonoma. SCRR is entitled to the annual rate increase pursuant to the terms of the Collection Agreement. The adjustment will allow SCRR to recover the actual cost of providing services while maintaining compliance with State waste diversion mandates and service level requirements.

BACKGROUND:

The City of Sebastopol entered into a long-term Solid Waste Collection Agreement with Sonoma County Resource Recovery, LLC, effective July 1, 2025. The Agreement grants SCRR an exclusive franchise to provide solid waste, recycling, and organic waste collection services within the City.

Under Article 6 of the Agreement, maximum service rates shall be adjusted annually beginning July 1, 2026 using a Refuse Rate Index (RRI). The RRI is designed to track changes in specific cost categories associated with solid waste collection and post-collection processing. SCRR is required to submit a draft rate adjustment report by March 1 of each year, with a revised report due by April 5 once County disposal fees are finalized. Pursuant to Section 6.09 of the Agreement, City Council approval is not required for any annual increase of less than six percent (6%), but staff is bringing this item to the Council for approval in furtherance of transparency.

DISCUSSION:

The following sections outline the required processfor proposing, reviewing, and approving annualsolid waste rate adjustments.

Section 6.08 – Maximum Service Rate Adjustment Report
Agenda Item Number 7 Agenda Item Number 7
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Each year, SCRR must submit a proposed rate adjustment report to the City: a draft by March 1 and a final version by April 5, reflecting any updated County disposal fees. The report must include detailed rate calculations in an approved electronic format, and SCRR bears all preparation costs. If the City identifies significant errors, SCRR must correct them at its own expense. Late reports may delay the effective date of any approved rate increase, and no retroactive increases are allowed. If no report is submitted, rates remain unchanged for the following year.

Section 6.09 – City Approval
If SCRR submits a timely rate adjustment report, the City Manager must notify SCRR by June 15 whether the proposed rates are approved for the next rate year. City Council approval is required for any increase over 6% or for any extraordinary rate adjustment. The City Manager may approve smaller adjustments or refer them to the City Council at their discretion. For purposes of transparency and public information, this item is being presented to the City Council for approval at a public meeting so residents are informed of the proposed rate adjustment.

STAFF ANALYSIS:

To meet the Agreement deadline, SCRR submitted its draft rate adjustment application on February 26, 2026, projecting a 4.96% Refuse Rate Index (RRI) increase for the 2026–27 rate year based on weighted adjustments across collection, disposal, organics, and recycling cost categories.

At the time of submission, Sonoma County had not yet finalized landfill and organic tip fees, which typically are approved during the month of March, and which take effect April 1. As permitted under the Agreement, SCRR therefore applied the prior four-year average increase for post-collection cost categories. SCRR confirmed that the collection service cost category data reflected final actual figures and was not expected to change.

Following receipt of the finalized County tip fee adjustments, SCRR revised its calculation, resulting in a proposed RRI increase of 3.82%, effective July 1, 2026.

BUDGET COMMITTEE REVIEW:

This item is scheduled to be reviewed by Budget Committee at its meeting on April 20, 2026 CITY COUNCIL GOALS/PRIORITIES/ AND OR GENERAL PLAN CONSISTENCY:

This agenda item represents the City Council goals/priorities as follows:

Not Applicable
This agenda item represents the City Council General Plan Consistency (if applicable):
• COS 9-13: Continue the citywide recycling program, actively encourage recycling citywide, including the recycling/composting of food waste, and advocate for a regional composting facility. • COS 9-14: Continue efforts to reduce solid waste generation throughout the life of the General Plan.

FISCAL IMPACT:

Approval of the proposed garbage rate increase will have no direct General Fund impact associated with this action.

COMMUNITY OUTREACH:

This item has been noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. The City has also used social media to promote and advertise the City Council Meeting Agenda Items.

Agenda Item Number 7 Agenda Item Number 7
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As of the writing of this agenda item report, the City has not received any public comment. However, if staff receives public comment from interested parties following the publication and distribution of this agenda item report, such comments will be provided to the City Council as supplemental materials before or at the meeting.

RESTATED RECOMMENDATION:

Staff recommends that the City Council adopt a resolution approving an adjustment to garbage collection rates, effective July 1, 2026, as presented in this report, in order to maintain cost recovery, ensure service reliability, and address increased operational expenses.

ATTACHMENT(S):

Resolution
Sebastopol Final 2026-2027 SCRR Rate Application
APPROVALS:

Department Head Responsible for Agenda Item: Approval Date: 3/10/26 CEQA Determination (Planning): Approval Date: N/A
The SCRR Franchise Agreement is Categorically Exempt under CEQA, Section 15308. The City’s action assures the protection of the environment since the Agreement contains several regulatory mandates for complying with state law for the disposal of multiple waste streams in a manner that ensures the protection of the environment.

Administrative Services (Financial): Approval Date: 3/5/26 Costs authorized in City Approved Budget: ☐ Yes ☐ No  N/A Account Code (if applicable) ___________________________ City Attorney Approval Approval Date: __________
City Manager Approval: Approval Date: __________
4/13/26
4/7/26
Agenda Item Number 7 Agenda Item Number 7
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Resolution NUMBER: XXXX-2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTOPOL APPROVING AN ANNUAL

ADJUSTMENT TO SOLID WASTE COLLECTION RATES FOR SONOMA COUNTY RESOURCE RECOVERY, LLC, EFFECTIVE JULY 1, 2026
WHEREAS, the City of Sebastopol entered into a Solid Waste Collection Agreement with Sonoma County Resource Recovery, LLC (“SCRR”), effective July 1, 2025, granting SCRR an exclusive franchise to provide solid waste, recycling, and organic waste collection services within the City; and WHEREAS, Article 6 of the Solid Waste Collection Agreement allows for annual adjustments to maximum service rates beginning July 1, 2026, using the Refuse Rate Index (“RRI”) methodology set forth in the Agreement; and
WHEREAS, SCRR timely submitted its annual rate adjustment application for the 2026–27 rate year in accordance with the requirements of the Agreement; and
WHEREAS, the proposed rate adjustment is based on documented changes in the cost of providing collection, disposal, organics, and recycling services and was calculated using the RRI methodology established in the Agreement; and
WHEREAS, subsequent to the initial draftsubmission, finalized Sonoma County disposal and processing fees were received and incorporated, resulting in a revised proposed RRI adjustment of 3.82 percent; and WHEREAS, staff has reviewed the rate adjustment application and determined that it complies with the Solid Waste Collection Agreement and reflects reasonable and documented cost changes necessary to maintain service reliability and compliance with state waste diversion requirements; and WHEREAS, approval of the proposed rate adjustment has no direct impact on the City’s General Fund; and WHEREAS, the Solid Waste Collection Agreement is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15308, as the action assures the protection of the environment through regulatory oversight;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Sebastopol does hereby:

1. Approve the annual adjustment to the maximum solid waste collection rates for Sonoma County Resource Recovery, LLC, based on a 3.82% Refuse Rate Index adjustment, effective July 1, 2026; and

2. Authorize the City Manager, or designee, to implement the approved rate adjustment in accordance with the Solid Waste Collection Agreement and to take any administrative actions necessary to carry out this Resolution.

The above and foregoing Resolution was duly passed, approved, and adopted at a meeting by the City Council on the 21st day of April 2026
I, the undersigned, hereby certify that the foregoing Resolution was duly adopted by the City of Sebastopol City Council by the following vote:

VOTE:

Agenda Item Number 7
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Yes:

No:

Absent:

Abstain:

APPROVED: _______________________________________
Mayor Jill McLewis
ATTEST:_______________________________________________________________ Mary Gourley, Interim City Manager/City Clerk, MMC
APPROVED AS TO FORM:__________________________________________________ Alex Mog, City Attorney
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