AGENDA TITLE:
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Set Public Hearing for March 18, 2026, to Consider Resolution Adopting Pre-Approved, Proposition 218 Consumer Price Index-Based Annual Adjustment to Rates for Solid Waste Collection (PW)
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MEETING DATE:
February 18, 2026
PREPARED BY:
Interim Public Works Director
recommendation
RECOMMENDED ACTION:
Set Public Hearing for March 18, 2026, to consider resolution adopting pre-approved, Proposition 218 Consumer Price Index-based annual adjustment to rates for solid waste collection.
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BACKGROUND INFORMATION:
The franchise agreement with Central Valley Waste Services (doing business as WM) allows rates for solid waste collection to be adjusted annually, on April 1st.
Section 10b and 10d of the franchise agreement allows Central Valley Waste Services the option to:
(a) adjust rates equal to 80 percent of the annual change in the Consumer Price Index (CPI) for all Urban Consumers for San Francisco-Oakland-Hayward, California Area, all Items (1982 - 84 = 100), plus an adjustment for extraordinary increases in landfill fees, fuel and energy costs, and changes in law, up to 100 percent of the change in the CPI.
Central Valley Waste Services is requesting to increase rates by 1.742 percent of the annual change in the CPI. The annual change in the CPI is 2.178 percent. The increase in rates based on 80 percent of the CPI change is 1.742 percent. During the same period, North County Landfill disposal rates decreased from $49.76 per ton to $40.64 per ton, representing an 18.33% reduction in disposal costs. This reduction substantially offsets the CPI increase, resulting in a minimal net adjustment.
For most residential customers, the rate increase will be $0.08 per month. The effective date of the proposed rates is April 1, 2026. The complete schedule of proposed rate changes is shown in Exhibit A.
FISCAL IMPACT:
Franchise and billing fees paid to the City will increase by approximately $7,200annually.
FUNDING AVAILABLE:
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