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HomeMy WebLinkAboutStaff Report 2601-5866CITY OF PALO ALTO Finance Committee Regular Meeting Tuesday, March 17, 2026   Agenda Item     3.Recommendation to the City Council to Adopt a Resolution Amending the Utility Rate Schedule R-1 for Residential Refuse Collection and Utility Rate Schedule R-C for Commercial Refuse Collection Reflecting a 3.0 Percent Rate Increase for Fiscal Year 2027; CEQA status – Exempt under Public Resources Code Section 21080(b)(8) and CEQA Guidelines 15378(b)(4) Staff Presentation Finance Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: March 17, 2026 Report #:2601-5866 TITLE Recommendation to the City Council to Adopt a Resolution Amending the Utility Rate Schedule R-1 for Residential Refuse Collection and Utility Rate Schedule R-C for Commercial Refuse Collection Reflecting a 3.0 Percent Rate Increase for Fiscal Year 2027; CEQA status – Exempt under Public Resources Code Section 21080(b)(8) and CEQA Guidelines 15378(b)(4) RECOMMENDATION Staff recommends that the Finance Committee recommend that the City Council: 1. Approve and authorize a 3.0 percent rate increase to Refuse rates; and 2. Adopt the resolution amending current Utility Rate Schedule R-1 for Residential Refuse Collection and Utility Rate Schedule R-C for Commercial Refuse Collection. EXECUTIVE SUMMARY The proposed 3% Refuse rate adjustment for Fiscal Year 2027 will align the solid waste revenues with the projected costs of providing refuse services and reduce reliance on the Rate Stabilization Reserve. BACKGROUND Refuse rates are designed to recover the City’s costs of collecting, transporting, processing, recycling, composting, and disposing of materials collected curbside, as well as providing extensive waste diversion services, and compliance with State and local regulatory requirements. The rates are based on the customer level of container size subscription, which provides a comprehensive suite of essential services including the following: Garbage Service: weekly curbside collection of the black garbage container, processing the garbage at the GreenWaste Recovery Material Recovery Facility in San Jose, and landfilling the residual at the Monterey Regional Waste Management District Landfill. Recycling Service: weekly curbside collection of the blue recycling container and sorting the recyclables into saleable commodities at the GreenWaste Recovery Charles Street Recycling Material Recovery Facility in San Jose. Compost Service: weekly curbside collection of the green compost container and processing and anaerobic digestion of yard trimmings and food scraps at the Zero Waste Energy Development facility in north San Jose to produce compost and energy. Street Sweeping Service: weekly street sweeping services during the leaf season and bi- weekly sweeping the rest of the year. Clean Up Day: pre-scheduled twice a year collection of large bulky items, extra contained garbage, recyclables and yard trimmings, and collection of reusable items, clothing and books. Household Hazardous Waste (HHW) service: weekly collection program at the HHW Station located at the Palo Alto Regional Water Quality Control Plant. Palo Alto Landfill post closure maintenance and monitoring: ongoing maintenance and monitoring at the closed Palo Alto Landfill. Miscellaneous other programs such as home composting, permanent compost giveaway station, zero waste events, outreach, utility billing, Zero Waste compliance programs, and compliance with State and local regulatory requirements such as SB 1383. The Refuse Fund has not adjusted commercial rates since Fiscal Year 20171 and residential rates since Fiscal Year 20182 while continuing to provide these essential services and programs. To maintain service levels during this period without raising rates, the City has relied on the Refuse Fund’s Rate Stabilization Reserve (RSR). ANALYSIS The proposed 3% Refuse rate adjustment is needed for Fiscal Year 2027 to better reconcile the solid waste revenues with the projected costs of providing refuse services and to minimize reliance on the RSR. Staff reviewed the City’s costs of providing refuse collection services and determined that the 3% increase will not exceed those costs. However, staff is conducting a more detailed cost of service analysis and comprehensive review of future financial needs and reserve requirements, and will use the results to confirm cost allocation to inform next year’s rate-setting actions. The attached resolution (Attachment A) amending current Utility Rate Schedule R-1 for Residential Refuse Rates (Attachment B) and Utility Rate Schedule R-C for Commercial Refuse 1 City Council, June 13, 2016; Agenda Item #9; SR #6932 2 City Council, June 19, 2017; Agenda Item 14; SR #8171 Rates (Attachment C) implements a 3% percent rate increase across all sectors in Fiscal Year 2027 to provide sufficient funds to meet increasing operating expenses, increased expenses related to the cost-of-living adjustments based on multiple indices required in the City’s solid waste contracts, including GreenWaste of Palo Alto and GreenWaste Recovery contracts which account for 76% of fund expenses, increased cost for street sweeping and the post-closure monitoring of the City’s closed landfill, and to reduce the reliance on the Refuse Fund RSR. Table 1: Current Residential and Proposed Rate Change in Fiscal Year 2027 Container Size Current Monthly Rates Proposed FY2027 Monthly Rates Change ($) 20-gallon $27.81 $28.64 $0.83 32-gallon $50.07 $51.57 $1.50 64-gallon $100.15 $103.15 $3.00 96-gallon $150.22 $154.72 $4.50 Table 2: Regional Residential Monthly Rate Comparison, Fiscal Year 2026 Rates City X-Small (20-24 gal cart) Diff vs Palo Alto ($) % Diff vs Palo Alto Small (32-35 gal cart) Diff vs Palo Alto ($) % Diff vs Palo Alto Palo Alto $27.81 $50.07 Campbell $42.55 $14.74 53%$52.68 $2.61 5% Cupertino $43.48 $15.67 56%$46.24 -$3.83 -8% Hayward $31.20 $3.39 12%$45.59 -$4.48 -9% Los Altos $49.89 $22.08 79%$53.75 $3.68 7% Los Altos Hills $44.67 $16.86 61%$62.27 $12.20 24% Los Gatos $45.94 $18.13 65%$57.22 $7.15 14% Menlo Park $50.31 $22.50 81%$58.64 $8.57 17% Monte Sereno $53.33 $25.52 92%$66.33 $16.26 32% Mountain View $37.55 $9.74 35%$50.05 -$0.02 0% Redwood City $44.87 $17.06 61%$58.86 $8.79 18% San Jose N/A ——$54.51 $4.44 9% Santa Clara $43.89 $16.08 58%$53.68 $3.61 7% Saratoga $46.98 $19.17 69%$58.33 $8.26 16% Sunnyvale*N/A ——$41.98 -$8.09 -16% Average $43.27 $15.46 $54.01 $3.94 Palo Alto’s rates compared to average rate -36%-7% *Split cart FISCAL/RESOURCE IMPACT The proposed 3% increase in rates is expected to increase annual rate revenue to the Refuse Fund by $1,005,186 compared to current Fiscal Year 2026 year-end estimated revenues and, if recommended, the proposed revenue adjustment will be reflected in the Public Works Department Refuse Fund Fiscal Year 2027 proposed Operating Budget. Table 3 shows the Refuse Fund RSR balance for fiscal years 2025 through 2027. This projection models the recommended 3% rate increase in Fiscal Year 2027. The RSR balance, as shown in Table 3, is projected to decline in Fiscal Year 2026 as a result of increased routine operating contract expenses, extra street sweeping in areas with parked oversized vehicles, as well as one- time increased expenses related to the GreenWaste of Palo Alto contract amendment approved by City Council in December 2025. Operating revenues, expenses, and the RSR are being evaluated through a comprehensive cost of service analysis. Upon completion, the results will be presented to the Finance Committee for review and recommendations to City Council. Table 3: Refuse Fund Summary and Budget Forecast Budget Category in Millions FY 2025 Actuals FY 2026 Estimate FY 2027 Estimate Rate Stabilization Reserves (beginning) 16.5 15.5 10.8 Revenues 34.2 33.5 34.5 Expenses 35.2 35.5 36.1 Operating Income (1.0)(2.0)(1.6) Other Changes to Reserves (2.7)(0.6) Rate Stabilization Reserves (ending) 15.5 10.8 8.6 STAKEHOLDER ENGAGEMENT Community stakeholders will receive a mailed notification, as required by Proposition 218, 45 days before the City Council date in June. ENVIRONMENTAL REVIEW Adoption of changes to the refuse rate schedule is exempt from CEQA under Public Resources Code section 21080(b)(8) because it consists entirely of the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges necessary to (1) meet operating expenses, (2) purchase or lease supplies, equipment or materials, (3) meet financial reserve needs and requirements, or (4) obtain funds for capital projects necessary to maintain service within the City’s existing service area. This action is also not subject to CEQA under CEQA Guidelines 15378(b)(4), because it is a government fiscal activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. ATTACHMENTS Attachment A: Resolution Amending Current Residential Rate Schedule R-1 and Current Commercial Rate Schedule R-C Attachment B: Residential Rate Schedule R-1 to be effective July 1, 2026 Attachment C: Commercial Rate Schedule R-C to be effective July 1, 2026 APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 1 0290192_20260302_ms29 Resolution No. ______ Resolution of the Council of the City of Palo Alto Amending the Utility Rate Schedules R-1 and R-C to Increase Refuse Rate for Fiscal Year 2027 R E C I T A L S A. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the City Council may by resolution adopt rules and regulations governing utility services and the fees and charges therefor; and B. The City has considered the need for an adjustment in refuse collection rates to reconcile the solid waste revenues with the projected costs of providing refuse services and to minimize reliance on the Refuse Fund Rate Stabilization Reserve levels and has determined that the proposed refuse collection rates do not exceed the costs of providing refuse collection services; and C. Pursuant to Article XIIID Sec. 6 of the California Constitution and Government Code Section 53755, on June 15, 2026 the Council of the City of Palo Alto held a full and fair public hearing to consider all protests against the proposed refuse rate fee increases; and D. As required by Article XIII D, Section 6 of the California Constitution and applicable law, notice of the June 15, 2026 public hearing was mailed to all City of Palo Alto Utilities refuse customers and property owners by May 1, 2026; and E. The total number of written protests submitted by parcels receiving refuse collection services, prior to the close of the public hearing, was less than fifty percent (50%) of the total number of parcels subject to the proposed refuse rate fee increases. The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule R-1 (Domestic Refuse Collection) is hereby amended to read in accordance with Sheets R-1-1, R-1-2 attached hereto and incorporated herein. The foregoing Utility Rate Schedule R-1, as amended, shall become effective on July 1, 2026. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule R-C (Commercial Refuse Collection) is hereby amended to read in accordance with Sheets R-C-1, R-C-2, R-C-3, R-C-4, R-C-5, R-C-6, and R-C-7, attached hereto and incorporated herein. The foregoing Utility Rate Schedule R-C, as amended, shall become effective on July 1, 2026. 2 0290192_20260302_ms29 SECTION 3. The Council finds that the revenue derived from the authorized adjustments of the refuse collection rates shall be used only for the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. SECTION 4. The Council finds that the adoption of this resolution changing the Utility Rate Schedules R-1 and R-C is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15378(b)(4). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ City Attorney or Designee City Manager _____________________________ Director of Public Works / City Engineer _____________________________ Director of Administrative Services DOMESTIC REFUSE COLLECTION UTILITY RATE SCHEDULE R-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1726 Supersedes Rate Schedule R-1 dated 7-01-1617 Sheet No. R-1-1 A. APPLICABILITY: This schedule applies to each occupied domestic dwelling as required by City ordinance, including separate single-family domestic dwelling and multi-unit dwellings (4 units or less). An occupied dwelling unit is defined as any home, apartment unit, cottage, flat or duplex unit, having kitchen, bath, and sleeping facilities, and to which gas or electric service is being rendered. Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. The refuse rates below provide weekly collection, processing and disposal of materials properly deposited in the number of garbage containers indicated below, as well as weekly collection and processing of recyclables from blue carts (standard service includes one 64-gallon blue cart), weekly collection and processing of compostables (yard trimmings, food scraps, and food soiled paper) from green carts (standard service includes one 96-gallon green cart), ongoing maintenance of the closed Palo Alto Landfill, zero waste programs, street sweeping service, the household hazardous waste program, and the annual Clean Up Dayclean up day program. Refuse Services Cost Mini-can/20-gallon cart *28.6427.81 1 32-gallon cart**51.5750.07 1 64-gallon cart 103.15100.15 1 96-gallon cart 154.72150.22 *Mini-can service cannot be combined with any other cart service **Standard cart service is one 32-gallon cart. D. SPECIAL ITEM CHARGES: 1. Stove/washer/dryer/water heater pick up *...................................................................... 25.7525.00 2. Freezer/refrigerator/air conditioner/garbage compactor pick up *.................................. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1726 Supersedes Rate Schedule R-1 dated 07-01-1617 Sheet No. R-1-23 41.2040.00 3. Upholstered furniture pick up (per unit) *....................................................................... 15.4515.00 4. Mattress pick up *............................................................................................................ 15.4515.00 5. Tire pick up (per tire, limit of 4 tires) *........................................................................... 20.6020.00 6. Pallet pick up *................................................................................................................. 5.155.00 * “Surcharge special” fee (see E5. below) applies when special item is not collected under the annual Clean Up Day Program guidelines. E. SPECIAL LABOR CHARGES: 1. Return trip (next day service)…………………………………………………….......... 24.7224.00 2. Return trip (same day service) ……………………………………………………........ 37.0836.00 3. Urgent special (for service outside standard weekly collection; charged per cubic yard) ..........................................................................................................................................61.806 0.00 4. Miscellaneous 1 person service rate (pull out service) ............................................. 2.572.50/min 5. Surcharge special (one time pick up of large or non-standard items; or delivery of containers for special events) ………….....................................................................................82.4080.00 6. Repair rate................................................................................................2.572.50/min + material 7. Back/side yard collection of garbage (monthly charge per residence – available to current back/side yard service customer only) ………………............................ 3.763.66 F. SPECIAL CART CHARGES: 1. 32-gallon cart rental*** …………………………… 3.243.15 2. 64-gallon cart rental*** …………………………… 3.243.15 3. 96-gallon cart rental*** …………………………… 3.243.15 4. 20-gallon cart purchase 61.8060.00 5. 32-gallon cart purchase……………………………………………………………........ 52.5351.00 6. 64-gallon cart purchase……………………………………………………………. ...... CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1726 Supersedes Rate Schedule R-1 dated 07-01-1617 Sheet No. R-1-33 58.7157.00 7. 96-gallon cart purchase……………………………………………………………........ 63.8662.00 8. Cart wash …………………………………………………………………………........ 30.9030.00 9. Compost cart contamination (entire cart dumped)………………………………........... 30.9030.00 10. Recycling cart contamination (entire cart dumped)………………………………......... 30.9030.00 11. Damaged cart exchange (one allowed per customer each calendar year at no cost)....... 20.6020.00 12. Monthly key service (customer provided lock) ……………………………………….. 15.4515.00 13. Lock (Collector provided) …………………………………………………………....... ............................................................................................................................................................25.752 5.00 14. Cart lock installation………………………………………………………………........ ............................................................................................................................................................41.204 0.00 *** Monthly charge for each additional cart of service above three carts for the compostable materials or three carts for the recyclable materials. recycling cart. COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1626 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-1 A. APPLICABILITY: This schedule applies to all occupied establishments other than residential premises as required by City ordinance. Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. The refuse rates below provide collection, processing and disposal of materials properly deposited in the number of refuse containers indicated below, as well as collection and processing of recyclables from special blue cartscontainers. The refuse rates below also provide hazardous waste programs, zero waste programs, ongoing maintenance of the closed Palo Alto Landfill, and street sweeping services, and clean up day programs. (1) MONTHLY GARBAGE CAN/CARTS Collection Frequency 32-gal. can or cart $36.543 5.48 $3.243.15 64-gal. cart* 75.4473. 25 168.5616 3.66 261.7025 4.08 354.823 44.49 447.9543 4.91 541.08525 .33 3.243.15 96-gal. cart 113.161 09.87 244.0123 6.91 374.8636 3.95 505.714 90.99 636.5761 8.03 767.42745 .07 3.243.15 * Standard service is one 64-gallon cart. COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1626 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-2 (2) MONTHLY GARBAGE BINS Collection FrequencySize (cubic yards)1x/week 2x/week 3x/week 4x/week 5x/week 6x/week Bin Rental 1 $183.8917 8.54 $363.9537 4.86 $549.3656 5.84 $733.62755 .62 $919.0394 6.60 $1,103.301, 136.39 $40.954 2.17 1.5 251.09243 .78 516.32501 .29 782.74759 .95 1,047.981,0 17.46 1,313.211, 274.97 1,578.461,5 32.49 42.1740. 95 2 318.29309 .02 657.78638 .63 999.65970 .54 1,340.331,3 01.30 1,679.831, 630.91 2,020.521,9 61.67 54.0752. 50 3 450.31437 .20 940.70913 .31 1,429.921, 388.28 1,920.321,8 64.39 2,411.892, 341.65 2,902.292,8 17.76 69.2167. 20 4 598.85581 .41 1,209.481, 174.26 1,880.241, 825.48 2,521.532,4 48.09 3,160.453, 068.40 3,800.563,6 89.87 69.2167. 20 5 730.87709 .59 1,521.871, 477.55 2,310.512, 243.22 3,101.5153, 011.18 3,892.513, 779.14 4,682.324,5 45.95 84.3581. 90 6 879.41853 .80 1,821.291, 768.25 2,759.642, 679.27 3,700.363,5 92.59 4,641.074, 505.90 5,580.605,4 18.06 84.3581. 90 8 1,147.001, 113.60 2,384.772, 315.32 3,624.923, 519.34 4,866.234,7 24.50 6,106.365, 928.51 7,346.497,1 32.52 110.311 07.10 (3) MONTHLY COMPOST CARTS* Collection Frequency Cart Sizes 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week Bin Rental 32-gal. cart $29.232 8.38 $3.243.15 64-gal. cart 60.3558. 60 134.8513 0.93 209.3520 3.26 283.862 75.60 358.3634 7.93 432.86420 .26 3.243.15 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1626 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-3 96-gal. cart 90.5387. 90 195.2118 9.53 299.8929 1.16 404.573 92.79 509.2549 4.42 613.94596 .06 3.243.15 *Multi-unit dwellings with five (5) to ten (10) units may receive up to one 96-gallon compostables cart collected once per week at no charge. Service over 96 gallons will be charged as described in G-7 below. Note: “Cart wash” (see G-1) is available and the additional cost of $30.90 will be assessed to account holders if odors become a public nuisance. COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1626 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-3 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1626 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-4 (4) MONTHLY COMPOST BINS Collection FrequencySize (cubic yards)1x/week 2x/week 3x/week 4x/week 5x/week 6x/week Monthl y Bin Rental 1 $147.111 42.83 $299.8929 1.16 $452.6743 9.49 $604.5058 6.90 $757.3073 5.25 $909.1188 2.64 $42.174 0.95 1.5 200.8719 5.02 413.06401. 03 626.19607. 96 838.38813. 97 1,050.571, 019.98 1,262.761, 225.99 42.1740 .95 2 254.6224 7.21 526.22510. 90 799.72776. 43 1,072.271, 041.04 1,343.871, 304.73 1,616.421, 569.34 54.0752 .50 3 360.2534 9.76 752.56730. 65 1,143.931, 110.62 1,536.251, 491.51 1,929.511, 873.32 2,321.832, 254.21 69.2167 .20 4 479.0746 5.12 967.59939. 41 1,504.191, 460.38 2,017.221, 958.47 2,528.362, 454.72 3,040.442, 951.89 69.2167 .20 5 584.7056 7.67 1,217.501, 182.04 1,848.411, 794.58 2,481.202, 408.94 3,114.003, 023.31 3,745.863, 636.76 84.3581 .90 6 703.5368 3.04 1,457.031, 414.60 2,207.722, 143.42 2,960.292, 874.07 3,712.863, 604.72 4,464.484, 334.45 84.3581 .90 Note: “Bin wash” (see G-2) is available and the additional cost of $41.2040 will be assessed to account holders if odors become a public nuisance. (5) DEBRIS BOXES NOTE: GreenWaste of Palo Alto has the exclusive rights to haul any and all mixed material (garbage, generic C&D, or mixed recycling) generated in Palo Alto. Category A: Includes garbage, mixed construction and demolition (C&D). Category B: Includes single-source separated materials and can be and directly marketed as a single commodity. Debris Box On-Call Service* 7 CY 15 CY 20 CY 30 CY 40 CY Delivery (A or B) $136.26 132.30 $ 136.26132. 30 $136.2613 2.30 $136.261 32.30 $136.2613 2.30 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1626 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-5 Service (Cat A) 696.69676 .40 696.69676. 40 808.68785. 13 1,035.01 1,004.87 1,128.141, 095.29 Service (Cat B) 354.73344 .40 354.73344. 40 411.83399. 84 527.7751 2.40 575.35 558.60 Non-use ** $78.2876. 00 $78.2876.0 0 $78.2876.0 0 $78.2876 .00 $78.2876. 00 * Additional “Contaminated charge” of $190.85185.30 (see I-5) may apply on debris boxes used for construction and demolition materials. **Within a fourteen (14) day period. Debris Box Category A Permanent Service 15 CY 20 CY 30 CY 40 CY 1x/week $2,717.212, 638.07 $3,305.453, 209.18 $4,244.984,1 21.34 $4,625.394, 490.67 2x/week 5,434.435,2 76.15 6,610.916,4 18.36 8,488.788,24 1.54 9,250.798,9 81.35 3x/week 8,152.827,9 15.36 9,915.189,6 26.39 12,733.7712, 362.89 13,876.181 3,472.02 4x/week 10,868.8510 ,552.29 13221.8112, 836.71 16,979.9416, 485.38 18,501.581 7,962.70 5x/week 13,586.0713 ,190.36 16,527.2616 ,045.89 21,224.9220, 606.72 23,126.972 2,453.37 Rental 151.41147.0 0 201.15195.3 0 301.73292.9 5 402.31390. 60 Debris Box Category B Permanent Service 15 CY 20 CY 30 CY 40 CY 1x/week $1,462.071,4 19.49 $1,705.751,6 56.07 $1,829.461,7 76.18 $1,953.171,8 96.29 2x/week 2,924.082,83 8.92 3,411.513,31 2.15 3,658.943,55 2.37 3,906.363,79 2.59 3x/week 4,386.224,25 8.47 5,117.264,96 8.22 5,492.155,33 2.19 5,859.545,68 8.88 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1626 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-6 4x/week 5,848.295,67 7.96 6,823.016,62 4.29 7,317.877,10 4.73 7,812.737,58 5.18 5x/week 7,310.377,09 7.45 8,528.778,28 0.36 9,147.348,88 0.92 9,765.919,48 1.47 Rental 151.41147.0 0 201.15195.3 0 301.73292.95 402.31390.6 0 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1626 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-6 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-1626 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-7 D. SPECIAL ITEM CHARGES*: 1. Stove/washer/dryer/heater pick up...................................................................................25.7525.00 2. Freezer/refrigerator/air conditioner (residential only).....................................................41.2040.00 3. Upholstered furniture pick up .........................................................................................15.4515.00 4. Mattress pick up ..............................................................................................................15.4515.00 5. Tire pick up (per tire, limit of 4 tires) .............................................................................20.6020.00 6. Pallet pick up ...................................................................................................................5.155.00 * Requests for pick up of special items must be made and scheduled in advance of regular pick up days. If no request is made, am an “Extra collection” fee (see E-1) will be applied. 1. Extra collection (for service of additional material; charged per cubic yard) ................61.8060.00 2. Miscellaneous 1 person service rate ……………………………………….............2.572.50/min 3. Repair rate …………………………………………...................................2.572.50/min + material 4. Return trip/Special trip…….……………………………………………………............ 82.4080.00 5. Special Events Delivery.......................................................................................................................30.9030.00 Materials and Service (per waste station)....................................................................20.6020.00 (6) Pullout Service (per bin) Carts Bins 1x/week $50.0051.50 $206.00200.00 2x/week 100.00103.00 412.00400.00 3x/week 150.00154.50 618.00600.00 4x/week 200.00206.00 824.00800.00 5x/week 250.00257.50 1,030.001,000.00 6x/week 300.00309.00 1,236.001,200.00 7. Whole cardboard box (boxes that have not been broken down) Cart..............................................................................................................................25.7525.00 Bin...............................................................................................................................51.5050.00 8. Overflowing container Cart..............................................................................................................................30.9030.00 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-2616 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-8 Bin...............................................................................................................................51.5050.00 F. RECYCLING AND COMPOST ORDINANCE CHARGES: If contamination is identified in a recycling or compost cart or bin, the customer will have an opportunity to remove the contamination and will only be charged a “Return trip” fee. If the customer chooses to not remove the contamination, the customer will be charged an “Extra solid waste pick-up” fee in addition to a “Return trip” fee. 1. Return trip…….………………………………………………………………………….82.4080.00 (2) EXTRA SOLID WASTE PICK UP (for contaminated recycling or compost containers only. Additional charges will apply to any materials left outside of the containers) Cart/Bin Size Contaminated Recycling Contaminated Compost 32-gal.$8.438.19 $1.681.64 64-gal.17.4216.92 3.483.38 96-gal 26.1325.37 5.225.07 1 CY 42.4641.23 8.498.25 1.5 CY 57.9856.30 11.5911.26 2 CY 73.5171.37 14.6914.27 3 CY 103.99100.97 20.7920.19 4 CY 138.29134.27 27.6526.85 5 CY 168.79163.88 33.7632.78 6 CY 203.09197.18 40.6239.44 8 CY 264.89257.18 N/A51.44 3. De minimus (no garbage service but subscribes to both compost and recycling) 25.7525.00 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-2616 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-8 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-2616 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-9 G. SPECIAL CART AND BIN CHARGES: 1. Cart wash …………………………………………………………………………........30.9030.00 2. Bin wash........................................................................................................................... 41.2040.00 3. Cart exchange …..............................................................................................................20.6020.00 4. Monthly key service (customer provided lock) per lock…………………………………15.4515.00 5. Lock (Contractor provided)………………………………………………………….....25.7525.00 6. Cart lock installation………………………………………………………………........41.2040.00 7. Each additional 32-gallon increment of weekly compostables cart service (in excess of 96 gallons per week) for multi-unit dwellings with five (5) to ten (10) units (monthly charge)..............................................................................................................................20.6020.00 8. Temporary bin-delivery (per bin)…………………………………………………........ 82.40 80.00 9. Temporary bin non-use fee (within a fourteen (14) day period) ……………………… 25.7525.00 10. Auto-bar lock installation ………………………………………………………...........206.00200.00 1. Debris box delivery …………………………………….................................................136.26132.30 2. Debris box non-use (within a fourteen (14) day period)…………………………….. 78.2876.00 3. Special debris box service between 12 PM to 6 PM ……………………………….......103.00100.00 4. Special debris box service between 6 PM to 12 AM ……………………………. ........206.00200.00 5. Special debris box service on Saturday before 12 PM …………………………….......103.00100.00 6. Special debris box service on Sunday before 6 PM ……………………………............309.00300.00 7. Special debris box service on Sunday, 6 PM to 12 AM ……………………….............412.00400.00 8. Contaminated loads of construction and demolition recycling materials………............190.85185.30 9. Overweight: 8 ton weight limit..........................................................................61.8060.00 per ton (or fraction thereof) over 8 tons, up to 10 tons. Note: GreenWaste cannot transport a debris box that is greater than 10 tons. 1. Compacted garbage (per compacted cubic yard) ……………………………………....75.4473.25 2. Compacted compostables (per compacted cubic yard) ………………………………...60.3558.60 3. Compacted recyclables (transportation) ………………………………......................... 206.00200.00 4. Overweight (per ton)........................................................................................................ 61.8060.00 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-C CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-01-2616 Supersedes Sheets R-C-1 through R-C-7.R-2-1&2 and R-3-1 through R-3-5 dated 7-01-1610-01-11 Sheet No. R-C-10 5. Contaminated loads of construction and demolition recycling materials........................ 190.85185.30 {End} March 17, 2026 www.paloalto.gov Refuse FundRate Change March 17, 2026 Finance Committee Item #3 Commercial and Residential Refuse rates •Charged based on container size and service frequency •Provide a comprehensive suite of essential services •Residentials rates were last updated in FY 2018; Commercial rates in FY 2017 Recover the City’s costs on: •Collecting, transporting, processing, recycling, composting, and disposing of landfill materials •Compliance with State and local regulatory requirements •Extensive waste diversion services and programs Refuse Rates 2 Current Residential & Proposed Rate change 3 Current Residential and Proposed Rate Change in Fiscal Year 2027 Container Size Current Monthly Rates Proposed FY2027 Monthly Rates Change ( $ ) 20-gallon $27.81 $28.64 $0.83 32-gallon $50.07 $51.57 $1.50 64-gallon $100.15 $103.15 $3.00 96-gallon $150.22 $154.72 $4.50 Residential Monthly Rate Comparison 4 $50.07 $51.57 $54.01 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 Small (32-35gal) Comparison Small (32-35 gal)Palo Alto Current Rate Average $27.81 $28.64 $43.27 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 X-Small (20-24gal) Comparison X-Small (20-24 gal)Palo Alto Current Rate Average Rate Stabilization Reserve 5 Refuse Fund Summary & Budget Forecast Budget Category in Millions FY 2025 Actuals FY 2026 Estimate FY 2027 Estimate Rate Stabilization Reserves (beginning) 16.5 15.5 10.8 Revenues 34.2 33.5 34.5 Expenses 35.2 35.5 36.1 Operating Income (1.0)(2.0)(1.6) Other Changes to Reserves (2.7)(0.6) Rate Stabilization Reserves (ending) 15.5 10.8 8.6 Recommendations 6 Staff recommends that the Finance Committee recommend that the City Council: 1.Approve and authorize a 3.0 percent rate increase to Refuse Rates; and 2.Adopt the resolution amending current Utility Rate Schedule R-1 for Residential Refuse Collection and Utility Rate Schedule R-C for Commercial Refuse Collection. Paula Borges Fujimoto Solid Waste Manager Paula.Borges@PaloAlto.gov 650-496-5914