HomeMy WebLinkAbout121625-08.2 RevisedTO:
SUBJECT:
ADMINISTRATIVE STAFF REPORT
8.2
Mayor and Town Council December 16, 2025
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.
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 121 Rates
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 $5,175,012, equivalent to 36% 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 2 December 16, 2025
Rate for 2026
2025
2026
$ Change
Monthly
Monthly
per
Type of Service
Rates
Rates
Month
Residential (weekly)
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 $5,175,012, equivalent to 36% 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 2 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:
CO"
Cat Bravo
Management Analyst
Reviewed by:
Tai J. Williams
Town Manager
Attachment: 2026 Rate Comparison
Solid Waste and Recycling 3 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
Solid Waste and Recycling 4 December 16, 2025
Rate for 2026