TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:November 4, 2025
SUBJECT: Annual Solid Waste Rate Adjustment for 2026
RECOMMENDATION:
1. Adopt resolution approving the annual rate adjustment for Solid Waste Collection Services effective January 1, 2026.
2. Find that this is not a project as defined under the California Environmental Quality Act because this action will not result in a direct or foreseeable indirect physical change in the environment [14 CCR 15060(c)].
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
No Additional Funding Requested. Cost of staff time to prepare the staff report is included in the Adopted FY 2025-26 Solid Waste Fund Budget. Proposed exclusive franchise solid waste rates would increase 3.1 percent in accordance with the Exclusive Solid Waste Franchise Agreement. Proposed limited franchise solid waste rates would increase 3.2 percent in accordance with the Limited Solid Waste Franchise Agreements.
BACKGROUND:
The City utilizes exclusive and limited franchise agreements to manage waste, recycling, and organic waste collection, as well as street sweeping services.
Exclusive Franchise Agreement
City Council approved a solid waste franchise agreement with Arakelian Enterprises, Inc., dba Athens Services, (Athens Services) on March 9, 2021, to provide citywide exclusive residential and commercial waste collection and street sweeping services (Contract No.12672-2021). The 2021 solid waste agreement establishes the basis for annual solid waste rate adjustments, which require annual approval by City Council to authorize.
Annual Solid Waste Rate Adjustment for 2026
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Limited Franchise Agreements
Limited franchise haulers provide temporary waste and recycling services for short-term activities such as residential remodels, home and yard cleanups, and commercial construction and demolition (C&D) projects. Temporary service is defined as service that occurs for a maximum of 30 days per specific location per calendar year or service provided for C&D projects that require a City building and/or grading permit. The City currently has three authorized limited franchise providers for temporary waste collection service, each with contracts expiring December 31, 2026. These firms are Athens Services (City of Industry, CA) (Contract No.12883-2021), E.J. Harrison and Sons, Inc. (Ventura, CA) (Contract No.12897-2021), and Ware Disposal, Inc. (Santa Ana, CA) (Contract No.12882- 2021).
Rate Adjustments
Solid waste maximum service rates are adjusted annually in accordance with the methodology detailed in Article 4 of the City’s exclusive and limited franchise agreements. The agreements specify that rates will be adjusted based on the change in the Consumer Price Index (CPI) between the base year, which shall be the prior preceding 12-month period ending July 31, and the preceding 12-month period ending July 31, with a floor of 1.0 percent and a cap of 4.0 percent.
DISCUSSION/ANALYSIS:
Rate Adjustments
Annual rate changes are calculated based on the CPI for All Urban Consumers, Los Angeles-Long Beach-Anaheim (CPI-U) published by the United States Bureau of Labor Statistics. If the calculation of the CPI-U exceeds 4.0 percent or is less than 1.0 percent, the total adjustment will be set at 4.0 percent or 1.0 percent, respectively. The CPI-U change between the base year ending July 31, 2024, and the most recent past year, ending July 31, 2025, was 3.2 percent. Athens is requesting a slightly lower annual adjustment of 3.1 percent, which is within the allowable CPI-U maximum service rate adjustment of 3.2 percent, and is therefore in accordance with the Solid Waste Franchise Agreement.
With the 3.1 percent annual adjustment, the maximum standard monthly rate for Single Family Dwelling and Multi-Family Dwelling with Individual Cart Service (three-cart bundle) will increase from $27.21 to $28.05, a $0.84 increase. The maximum monthly service rate for once-a-week service of a standard three-cubic- yard commercial bin bundled rate will increase from $195.50 to $201.56, a $6.06 increase. The maximum monthly service rate for once-a-week service of a Annual Solid Waste Rate Adjustment for 2026
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standard 40-cubic-yard roll-off dumpster will increase from $234.61 to $241.88, a $7.27 increase.
The limited solid waste franchise rates will have a maximum annual adjustment of
3.2 percent, which is within the allowable CPI-U maximum service rate adjustment of 3.2 percent, and is therefore in accordance with the Limited Solid Waste Franchise Agreement.
A full summary of the existing 2025 rates and proposed maximum 2026 rates for residential, commercial, and temporary (limited franchise) solid waste services provided under the exclusive and limited franchise agreements is provided in Attachment #1.
Upon approval, the updated service rate information will be posted on the City’s website. Athens Services will notify customers of the changes in their monthly or bi-monthly bills. The resolution (Attachment #2) establishes the maximum annual rate adjustments for solid waste collection services effective January 1, 2026.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made. The completed Levine Act forms are included as Attachments Nos. 3 through 5.
Annual Solid Waste Rate Adjustment for 2026
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COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Sarah McGurk, Sustainability Analyst
Attachments:
Attachment #1 – Proposed 2026 Solid Waste Service Rates Attachment #2 – Resolution to Adopt 2026 Solid Waste Service Rate Schedules
Attachment #3 – Levine Act Form for Athens Services
Attachment #4 – Levine Act Form for E.J. Harrison and Sons, Inc.
Attachment #5 – Levine Act Form for Ware Disposal, Inc.
DPW: 810-40\ev\Council\2025\110425\Solid Waste Rate Adjustment staff report.docx