HomeMy WebLinkAbout121625-08.2
ADMINISTRATIVE STAFF REPORT 8.2
TO: Mayor and Town Council December 16, 2025
SUBJECT: Consider proposed Solid Waste and Recycling rates for 2026 (Rate Year
12) and forward a recommendation for a 9% rate increase to the
RecycleSmart Joint Powers Authority
BACKGROUND
Danville is a member of RecycleSmart, a Joint Powers Authority (JPA) which provides
solid waste and recycling services for Danville, Lafayette, Moraga, Orinda, Walnut Creek,
and a portion of Contra Costa County. The JPA was formed in 1994 to capitalize on
economies of scale, reduce service delivery costs and help meet state-mandated solid
waste diversion requirements. Through the JPA, the Town has been able to keep service
delivery costs low for Danville residential and commercial ratepayers.
The JPA is currently entering into Rate Year 12 (2026) of service, and the last, under the
current twelve-year franchise agreement. Republic Services and Mt. Diablo Recycling
currently service over 15,000 residential accounts within the Town.
The RecycleSmart Board sets solid waste rates annually for residential and commercial
services. The goals of the annual rate setting process are to: 1) maintain rates that are as
competitive as possible for Danville ratepayers; 2) ensure that sufficient revenues are
available to meet revenue requirements called for under the franchise agreement; and 3)
maintain sufficient reserves to ensure long term rate stability. The Town's two
representatives on the 12-member RecycleSmart Board of Directors are Mayor Arnerich
and Councilmember Morgan.
RecycleSmart will adopt 2026 rates at their public hearing on January 27, 2026. New rates
become effective March 1, 2026. Each member jurisdiction of the JPA is responsible for
recommending its own rates to the RecycleSmart Board of Directors.
DISCUSSION
Annual rates are set based upon the costs associated with delivering solid waste and
recycling services including: compensation for Republic Services and Mt. Diablo
Recycling, maintaining appropriate reserve levels, and RecycleSmart administrative
costs.
Solid Waste and Recycling 2 December 16, 2025
Rate for 2026
The total revenue required to meet Danville's service delivery requirements for 2026 is
$14,225,392. To meet the revenue requirement, a rate increase of 9% is recommended. The
recommended adjustment will ensure that sufficient reserves are maintained to fund any
unanticipated costs and provide for rate stability moving forward. Recommended 2026
rate increases for the other JPA member agencies are forecast to range from 6.0% to 10.0%.
Table 1 illustrates the year over year rate impact associated with the recommended 9%
increase. Monthly rates for Residential service would increase between $3.36 and $9.41,
depending on container size, while the Commercial service rates would increase between
$21.04 and $63.12, also depending on container size. The recommended rate adjustment
will generate the funds needed to meet the 2026 service delivery revenue requirement.
Table 1
Proposed 2026 (Rate Year 12) Rates
2025 2026 $ Change
Monthly Monthly per
Type of Service
Residential (weekly)
Rates Rates Month
20 gallon $37.31 $40.67 + $3.36
32 gallon $41.36 $45.08 + $3.72
64 gallon $70.35 $76.68 + $6.33
96 gallon
Commercial (weekly)
$104.53 $113.94 + $9.41
1 cubic yard $233.79 $254.83 + $21.04
2 cubic yard $467.55 $509.63 + $42.08
3 cubic yard $701.35 $764.47 + $63.12
Reserves
Reserves are maintained and utilized to fund any unanticipated costs and to stabilize
current and/or future rates charged to ratepayers. Danville's 2026 reserves are projected
to be $5,463,19, equivalent to 24% of the 2026 revenue requirement. Reserves will be used
over the next few years to smooth rates as the Town enters a new franchise agreement in
2027.
PUBLIC CONTACT
Posting of the meeting agenda serves as notice to the general public. A copy of this staff
report was provided to RecycleSmart.
Solid Waste and Recycling 3 December 16, 2025
Rate for 2026
FISCAL IMPACT
Proposed 2026 rates would generate estimated revenues of $14,255,392 sufficient to fund
all service delivery and related costs for all Danville residential and commercial
customers.
RECOMMENDATION
Approve proposed Solid Waste and Recycling Rates for 2026 (Rate Year 12) and forward
a recommendation for a 9% rate increase to the RecycleSmart Joint Powers Authority.
Prepared by:
Cat Bravo
Management Analyst
Reviewed by:
Tai J. Williams
Town Manager
Attachment: 2026 Rate Comparison
Solid Waste and Recycling 4 December 16, 2025
Rate for 2026
2026 Rate Comparison
Jurisdiction
32-gal.
$/Mo.
Recycling
Frequency
Yard Waste
Frequency
Piedmont $108.60 Weekly Weekly
Orinda $70.68 Weekly Weekly
El Cerrito $68.21 Weekly Weekly
Kensington $63.12 Weekly 2x per month
San Ramon $52.11 Weekly Weekly
Moraga $53.46 Weekly Weekly
Lafayette $52.62 Weekly Weekly
Martinez
$48.82 Weekly Weekly
Richmond $58.45 Weekly Weekly
Hercules $58.07 Weekly Weekly
Concord $54.31 Weekly Weekly
West CC County $50.96 Weekly Weekly
Livermore $40.73 Weekly Weekly
Dublin $42.92 Weekly Weekly
Pinole $55.37 Weekly Weekly
Danville - Final* $45.08 Weekly Weekly
San Pablo $52.37 Weekly Weekly
Danville (Current) $41.36 Weekly Weekly
County $39.61 Bi-weekly Bi-weekly
Pleasant Hill $36.40 Weekly Weekly
Brentwood $36.17 Weekly Weekly
Walnut Creek $33.91 Weekly Weekly
* Reflects 2026 Proposed Rate; All other rates are subject to increase during 2026