PREPARED BY: AMANDA BOOTH DATE OF MEETING: 11/03/2025
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO (1) EXPRESSING ITS SUPPORT FOR THE PROPOSED POST-COLLECTION AGREEMENT BETWEEN THE WEST CONTRA COSTA INTEGRATED WASTE MANAGEMENT AUTHORITY (RECYCLEMORE); AND (2) PROVIDING ITS FORMAL RECOMMENDATION THAT THE CITY’S APPOINTED REPRESENTATIVE(S) TO THE RECYCLEMORE BOARD APPROVE THE POST-COLLECTION AGREEMENT
CEQA: The Contra Costa Integrated Waste Management Authority, as lead agency, is in the process of completing a CEQA review of the project and determined it is likely Categorically Exempt in accordance with Section 15301, Existing Facilities, and Section 15308, Actions by a Regulatory Agency for the Protection of the Environment. Authority staff will complete additional analysis, as necessary, and file the appropriate CEQA documents, if any, pending approval of the agreement.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
FY 2023-2025 Council Priority Workplan Compliance Statements:
Item 202: Identify and implement long-term environmental stewardship goals is a major policy goal contained in the FY 2025-27 City Council Priority Workplan, adopted April 7, 2025.
BACKGROUND
Solid waste services, which include garbage, recycling, and green waste curbside collection and post-collection processing and disposal, are provided by Republic Services for West County municipalities. There are two (2) separate contracts for solid waste and recycling programs and services for the City of San Pablo, as follows:
1. Collection Services: This includes the curbside (or on-property) collection of solid waste material; and
2. Post-collection Services: This includes the processing of solid waste material after collection. Post-collection services involve either the disposal of non-reusable solid waste material or the processing of this material to be used in after-market products (such as compost or recycled products).
Collection Services
The City of San Pablo has a Franchise-Collection Agreement with Richmond Sanitary Services, Inc. (RSS), a subsidiary of Republic Services, Inc. The City of San Pablo has direct control over the Collection Service program, and pursuant to Resolution 2024-140, the City Council approved Republic Services as the franchised hauler for the City with a new contract that began on July 1, 2025. Information about the new contract, rates, and services can be found at www.sanpabloca.gov/2874/Solid-Waste <http://www.sanpabloca.gov/2874/Solid-Waste>.
Post-Collection Agreement (PCA)
The City of San Pablo is a member of the West Contra Costa Integrated Waste Management Authority (Authority), also known as RecycleMore, which is comprised of San Pablo, El Cerrito, Richmond, Pinole, Hercules, and parts of Unincorporated Contra Costa County. On behalf of its member agencies, RecycleMore has an agreement with Republic Service - West County Resource Recycling for the post-collection processing and disposal of solid waste. This Post-Collection Agreement has been in effect since 2013.
The Authority’s current PCA with Republic Services - West County Resource Recycling (Republic Services) expired on June 30, 2025, and was temporarily extended for a period of six months through December 31, 2025. This extension was executed pursuant to provisions in the existing contract, which allow for short-term extensions subject to cost adjustments. The extension was necessary to ensure continued service while the Authority completed a competitive procurement process and negotiated terms for a new long-term agreement.
On May 15, 2023, pursuant to Resolution 2023-079, the San Pablo City Council advised the San Pablo RecycleMore Board Member representative (Councilmember Xavier) to direct RecycleMore staff to work collaboratively with staff from all member agencies on the development of an open and competitive bidding process for the Post-Collection Agreement (PCA).
In anticipation of the expiration of the existing PCA, the Authority issued a Request for Proposals (RFP) in October 2024 to solicit competitive bids for post-collection services. These services include the transfer and disposal of solid waste, recycling and organics processing, operation of household hazardous waste (HHW) programs, and related diversion activities. Only one proposal was received in response to the RFP, which was submitted by the incumbent provider, Republic Services.
Beginning in March 2025, the Authority and Republic Services entered into negotiations to finalize the terms of a new long-term PCA. These negotiations have recently concluded, and a draft agreement has been prepared for consideration by Member Agencies and the RecycleMore Board. The proposed agreement will establish the framework for post-collection services over the next 15 years and beyond, and reflects input from Authority staff, technical consultants, and legal counsel.
Contract Term- The proposed new PCA with Republic Services would commence on January 1, 2026, and extend through June 30, 2040, for a base term of 14.5 years. This term is intentionally aligned with the expiration of new 15-year Franchise Agreements for collection services recently executed by the Authority’s Member Agencies, including the City of San Pablo. The agreement also includes two optional five-year extensions, which may be exercised to maintain alignment with potential extensions of the Franchise Agreements in San Pablo.
Scope of Services- Under the new PCA, Republic Services will continue to provide a comprehensive suite of post-collection services, including:
• Solid Waste Transfer and Disposal - Continued management and transportation of municipal solid waste to appropriate disposal sites.
• Recycling Processing - Sorting, processing, and marketing of recyclable materials to divert them from landfill disposal.
• Organics Processing - Collection and composting of green waste and food scraps in compliance with SB 1383 requirements.
• Construction and Demolition (C&D) Recycling - Processing of C&D materials for recovery and diversion.
• Household Hazardous Waste (HHW) Program - Operation of both permanent and satellite HHW facilities, consistent with the current program scope.
• Mattress Recycling - Ongoing participation in the regional mattress recycling program, including resident drop-off services.
Compensation Framework- The new PCA maintains the blended per-ton rate compensation model used under the previous agreement. This model consolidates several cost components into a single rate paid by the franchised collection companies when delivering materials to Republic Services facilities. The blended rate includes:
• Material-specific costs for transfer, disposal, and processing of various waste streams
• Household Hazardous Waste program budget
• Government-mandated fees
• The Authority’s operational and administrative budget
Two key components included in the prior PCA (recycling rebate and the SB 1383 compliance fund) have been eliminated in the new agreement. These changes simplify the compensation structure and are intended to reduce direct costs in the material-specific component of the blended rate. Funding for future SB 1383-related compliance activities will instead be managed through the Authority’s annual budgeting process, rather than via a separate fund held by Republic Services.
Table 1- Compensation Breakdown
|
Components of Blended Per Ton Rate |
Prior PCA |
PCA 6-Month Extension |
NEW PCA |
|
|
1/1/25-6/30/25 Costs |
7/1/25-12/31/25 Costs |
Adjustment |
Adjustment Percent |
1/1/2026 Costs |
Adjustment |
Adjustment Percent |
|
Material Specific |
$93.81 |
$144.00 |
$50.19 |
53.5% |
$158.41 |
$14.41 |
10.0% |
|
HHW Program |
$9.25 |
$9.25 |
$0.00 |
0.0% |
$13.78 |
$4.53 |
49.0% |
|
Governmental Fees |
$10.70 |
$10.70 |
$0.00 |
0.0% |
$11.07 |
$0.37 |
3.5% |
|
Authority Budget |
$10.22 |
$12.57 |
$2.35 |
23.0% |
$12.72 |
$0.15 |
1.2% |
|
Total |
$123.98 |
$176.52 |
$52.54 |
42.4% |
$195.98 |
$19.46 |
11.0% |
|
Omitted components included in the prior PCA and extension include the recycling rebate (-$3.80) and SB 1383 change in law (+$1.62). |
Cost Escalation Framework- In an effort to keep initial costs down and prevent a major increase in rates, the Authority and Republic agreed to the following cost escalation framework. The structure is designed to provide predictability and limit year-over-year increases while allowing for market-based adjustments:
Table 2- Cost Escalation Each Year
|
Contract Year |
Calendar Year |
Percent Increase |
Notes |
|
1 |
2026 |
10% |
Fixed Cost Increase |
|
2 |
2027 |
10% |
|
|
3 |
2028 |
10% |
|
|
4 |
2029 |
Max 5% |
CPI-based annual adjustments, capped at 5% |
|
5 |
2030 |
Max 5% |
CPI-based annual adjustments, capped at 5% |
|
6 |
2031 |
Max 5% |
CPI-based annual adjustments, capped at 5% |
|
7 |
2032 |
Max 6% |
CPI cap at 6%, with a one-year rollover for any excess CPI and a one-time true-up to reconcile the capped increase from 2029-2031 |
|
8 |
2033 |
Max 7% |
CPI-based adjustment with a 7% cap and a one-year rollover provision |
|
9 |
2034 |
Max 8% |
CPI-based adjustment with an 8% cap and a one-year rollover provision |
|
10 |
2035 |
Max 8% |
|
|
11 |
2036 |
Max 8% |
|
|
12 |
2037 |
Max 8% |
|
|
13 |
2038 |
Max 8% |
|
|
14 |
2039 |
Max 8% |
|
|
15 |
2040 |
Max 8% |
|
New Services and Compliance Requirements- The new PCA includes several enhancements and support programs to assist Member Agencies with SB 1383 compliance and public engagement:
• Compost Procurement Support- Including continuation of monthly residential compost giveaways and direct compost allocations for Member Agencies
• Improved Reporting and Transparency- Including access to key reporting metrics and commercial sector compliance data, and enhanced tracking with real-time data sharing to support SB 1383 reporting requirements
• Community Education- Continuation of Authority-led facility tours for students and community groups
Rate Impact- The most significant cost driver in the new PCA is the material-specific component of the blended per-ton rate, which will increase 10.0% beginning January 1, 2026, from the current rate of $144.01/ton to $158.41/ton. This adjustment reflects cost changes associated with processing, disposal, and regulatory compliance.
A secondary rate impact arises from the increased Household Hazardous Waste (HHW) program budget, which will increase by approximately $4.53 per ton (49.0%). This is primarily due to:
• A $285,000 (60%) increase in third-party HHW disposal costs
• A projected $185,000 for two one-day special collection events
• Reconciliation of approximately $129,000 in prior-year HHW cost deficits
• A $114,000 increase in Republic Services’ program management expenses
Overall, these costs equate to a 9% increase for the Post-Collection rates for residential customers and a 10% increase per cubic yard for commercial customers starting January 1, 2026.
When these changes are combined with the overall rate structure approved under the new Franchise Agreements for collection services, the average rate impact to San Pablo customers beginning January 1, 2026, is estimated as follows:
• Residential Customers: ~3.4% increase
• Commercial Customers: ~1.5% increase for typical service (e.g., two cubic yard bin, collected twice per month)
Table 3 - Residential Rates
|
Member Agency |
Single-Family & Multi-Family Trash Service Levels |
Collection Rate (7/1/25) |
Current PCA Rate (7/1/25) |
Total Rate Charged To Ratepayers (7/1/25) |
PCA Rates (1/1/26) |
New PCA Rates Increase (1/1/26) |
New Total Rate Charged To Ratepayers (1/1/26) |
Rate Impact Percent Change |
|
San Pablo |
35-gallon |
$31.66 |
$19.00 |
$50.66 |
$20.73 |
$1.73 |
$52.39 |
3.41% |
|
|
65-gallon |
$60.57 |
$35.31 |
$95.88 |
$38.52 |
$3.21 |
$99.09 |
3.35% |
|
|
95-gallon |
$89.76 |
$53.01 |
$142.77 |
$57.83 |
$4.82 |
$147.59 |
3.38% |
Table 3 - Commercial Rates
|
Member Agency |
2 Cubic Yard Bin Collected 2x/Week (7/1/25) |
PCA Cubic Yard Rate = $16.99 (7/1/25) |
Total Rate Charged To Ratepayers (7/1/25) |
New PCA Cubic Yard Rate = $18.72 (1/1/26) |
New Total Rate Charged To Ratepayers (1/1/26) |
Rate Impact Percent Change |
|
San Pablo |
$847.06 |
$147.13 |
$994.19 |
$162.12 |
$1,009.18 |
1.51% |
After the initial rate increase in January of 2026, the next scheduled collection rate adjustment will not occur until January 1, 2027, providing rate stability during the first year of the new PCA term.
Staff Recommendation
City staff recommends the City Council provide a formal recommendation to the Council representative(s) on the RecycleMore Board (Board) to support the Post-Collection Agreement approval at the next RecycleMore Board Meeting.
FISCAL IMPACT
The proposed action has no direct impact on the City of San Pablo's adopted budget. RecycleMore is independently funded through solid waste service fees.
ATTACHMENTS:
Att. A - Resolution
Att. B - Draft Post Collection Agreement