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HomeMy WebLinkAboutItem 10d - Refuse and Recycling Service Rates STAFF REPORT PUBLIC WORKS SERVICES DEPARTMENT DATE: June 16, 2026 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Briget Arndell, Environmental Services Manager SUBJECT: RESOLUTION NO. 7700 AMENDING THE RESIDENTIAL REFUSE AND RECYCLING AGREEMENT WITH WASTE MANAGEMENT AND SETTING REFUSE AND RECYCLING RATES FOR THE COLLECTION AND DISPOSAL OF SINGLE-FAMILY AND MULTI-FAMILY RESIDENTIAL SOLID WASTE AND RECYCLABLES PURSUANT TO SECTION 5120.7 OF THE ARCADIA MUNICIPAL CODE FOR FISCAL YEARS 2026-27 THROUGH 2030-31 CEQA: Not a Project Recommendation: Adopt SUMMARY At the April 21, 2026, City Council Meeting, the City Council directed the Public Works Services Department (“PWSD”) to follow Proposition 218 balloting procedures for the proposed refuse rate adjustment and set the public hearing for the June 16, 2026, City Council Meeting. The purpose of the public hearing is to allow the public an opportunity to provide comments regarding the proposed refuse rate adjustment. Upon conclusion of the public hearing, it is recommended that the City Council adopt Resolution No. 7700 amending the Residential Refuse and Recycling Agreement with Waste Management, and setting refuse and recycling rates for the collection and disposal of single-family and multi-family residential solid waste and recyclables pursuant to Section 5120.7 of the Arcadia Municipal Code for Fiscal Years (“FY”) 2026- 27 through 2030-31. BACKGROUND Waste Management (“WM”) has been the City’s exclusive single-family and multi- family refuse and recycling hauler since 1999 and has consistently provided excellent Public Hearing Refuse & Recycling Service Rates June 16, 2026 Page 2 of 8 service. The current Agreement with WM was executed in March 2009 for a seven- year term, which expired on June 30, 2016. In October 2013, the City Council executed the First Amendment to the Agreement for an additional five years through June 2021. On June 15, 2021, the City Council approved a Second Amendment to the Agreement with WM and a five-year rate adjustment schedule, in accordance with Proposition 218 requirements. The new agreement included an Administrative Fee; new enhanced services, which included two community mulch giveaway events, two community document shredding events, bins for tree trimming, mail-back services for medical sharps waste, and household hazardous waste disposal; fall leaf collection program; miscellaneous debris removal at City-designated sites; trash and recycling collection for five non-City events; and compliance with new laws and regulations. The agreement also included a 10-year term, which expires on June 30, 2031; however, the rates for the final five years of the agreement could not be set at that time due to state limitations. At the April 7, 2026, City Council Study Session, the PWSD presented a proposed Third Amendment to the WM Agreement. The new agreement includes the following: • Amendment to the WM contract to reflect a 5-year rate adjustment schedule for FY 2026-27 through 2030-31, in compliance with Proposition 218 requirements; • Phased two-year labor fee adjustment for FY 2026-27 and FY 2027-28, divided between Single-Family Rates (50%) and Multi-Family Rates (50%); • Annual Inflationary Adjustment based on the consumer price index and disposal/diversion fee; • Contamination rates that follow the regional average; and • An additional community mulch giveaway event provided each fiscal year. At the April 21, 2026, City Council Meeting, it was recommended that the City Council accept the Third Amendment to the Residential Refuse and Recycling Agreement with WM and the proposed refuse and recycling rates for FY 2026-27 through 2030-31. The City Council accepted staff’s recommendation and directed the PWSD to follow Proposition 218 balloting procedures for the proposed refuse rate adjustment, and set the public hearing for the June 16, 2026, City Council Meeting. Public Hearing Refuse & Recycling Service Rates June 16, 2026 Page 3 of 8 DISCUSSION On March 11, 2026, WM submitted a request for a service rate adjustment, which included an increase in labor fees. The labor fees would be phased in over two years for FY 2026-27 and 2027-28, and would be divided evenly, with 50% in Single-Family Rates and 50% in Multi-Family Rates. Furthermore, the service rates include the previously approved annual Rate Adjustment Methodology Formula that is comprised of two indices: a Disposal/Diversion Component and a Service Component. The Disposal/Diversion Component consists of costs for tipping fees charged at landfills for trash, tipping fees charged at composting facilities for green waste/food waste, and recycling fees at processing/recycling facilities. Under the Rate Adjustment Methodology, the Disposal/Diversion Component is given a 40% weight in the calculation of the new rate. The Service Component is based on monthly percent changes in the Consumer Price Index (“CPI”) for Los Angeles-Long Beach- Anaheim, between the current year and the prior year, and is given a 60% weight in the calculation of the new rate. Table 1 shows the percentage breakdown and weighted amount that is accounted for in each index that makes up the rate adjustment for FY 2026-27: Table 1: Rate Adjustment Formula Rate Component Weight of Rate Adjustment due to Change in Indices Weighted Rate Adjustment Percentage Disposal/ Diversion 40% 3.35% 1.34% Service 60% 3.21% 1.93% TOTAL 3.27% The proposed labor fees account for increased operational collection labor costs of municipal solid waste/trash, totaling $154,019.79. Table 2 shows the labor fee total divided 50% into Single-Family Rates and 50% Multi-Family Rates, over two years. Table 2: Labor Fees Split 50/50 Single-Family increase per home per month $ 0.28 Multi-Family increase per yard per month $ 0.09 * *Multi-Family rates are calculated per yard on trash services and multiplied by the frequency of pick- ups per week each month (average over 12 months = 4.33). Public Hearing Refuse & Recycling Service Rates June 16, 2026 Page 4 of 8 Should the proposed rates be approved, starting July 1, 2026, there will be an additional $0.28 reflected in the Single-Family Rates for standard services (one 96- gallon municipal solid waste/trash cart, one 64-gallon recycling cart, and one 96- gallon organics cart), an additional $1.17 will be reflected in Multi-Family Rates for standard services (one 3-yard municipal solid waste/trash dumpster, one 3-yard recycling dumpster, and one 96-gallon organics cart), and an additional $0.58 will be reflected in Multi-Family Rates for 3-yard split bin services. The labor fees are only allocated to municipal solid waste/trash (non-recycled waste). A split bin has half municipal solid waste/trash and half dry recycling. As such, only one-half of the split bin is impacted by the labor fee. Single-Family standard service rates will reflect the 3.27% annual rate adjustment plus the $0.28 labor fee. The rate will increase by $1.53 (3.94% total) and will total $40.36 per month. Multi-Family standard service rates will reflect the 3.27% annual rate adjustment plus the $1.17 labor fee ($.09 x 3-yard bin x the monthly collection frequency, which is about $4.33 over 12 months). The rate will increase by $9.17 (3.73% total) and will be $254.57 per month. Multi-Family 3-yard split bin service rates will reflect the 3.27% annual rate adjustment plus the $0.58 labor fee (half the $1.17 labor fee). The rate will increase by $7.19 (3.54% total) and will be $210.12 per month. Tables 3 through 5 show the breakdown of proposed service rates for standard services in FY 2026-27. Table 3: Single-Family Rates – Standard Services for FY 2026-27 Public Hearing Refuse & Recycling Service Rates June 16, 2026 Page 5 of 8 Table 4: Multi-Family Rates – Standard Services for FY 2026-27 Table 5: Multi-Family Rates – Split Bin Services for FY 2026-27 Effective July 1, 2027, the labor fees will be consistent with FY 2026-27 labor fees. Single-Family Rates would be raised by the annual rate adjustment plus the $0.28 labor fee for standard services. Multi-Family Rates would be raised by the annual rate adjustment plus $0.09 per yard, per pickup labor fee for standard services. The Split Bin rate would be raised by the annual rate adjustment plus the $0.58 labor fee. While the exact rate adjustment for FY 2027-28 cannot be determined at this time, it will follow the annual rate adjustment formula, which is calculated based on the following data: The current (2026) and prior (2025) year’s costs for: • Landfill and organic gate rates (disposal); • Recycling gate rates (disposal); Public Hearing Refuse & Recycling Service Rates June 16, 2026 Page 6 of 8 • Change in combined disposal costs (disposal); and • 12-month year-over-year average percentage change in the Consumer Price Index for all urban consumers (“CPI-U”) in the garbage and trash index (service). In FY 2028-29 through FY 2030-31, there will be no labor fees. The annual rate adjustment will go back to using the two indices included in the rate adjustment formula (60% of the Consumer Price Index and 40% of the Disposal/Diversion rate adjustment factor) as approved in the City of Arcadia’s Residential Refuse and Recycling Agreement with WM. The chart below presents the City of Arcadia’s single-family standard services refuse and recycling rates in comparison to most current single-family standard services rates of those of neighboring jurisdictions. Not all cities shown in the rate comparison table below are WM customers, nor do they provide the same level of service and programs included in the City of Arcadia’s current contract. Cities listed to the left of Arcadia’s (proposed) rate are serviced by other haulers, and the predominant rate adjustment methodology for those cities is CPI+1%. With high inflationary pressures worldwide, those rates are expected to increase significantly in the coming years. Another thing to note based on the chart above is that the City of Sierra Madre provides all of its residents with a “free” bear resistant bin. Arcadia is occasionally Public Hearing Refuse & Recycling Service Rates June 16, 2026 Page 7 of 8 asked to provide a similar service instead of having interested residents buy them individually. As can be seen with the high cost of Sierra Madre’s services, the cost of the required bear bins is reflected in the rate structure. IMPLEMENTATION OF NEW RATES In accordance with Proposition 218, the City must engage in a proper voter approval process when increasing refuse rates. These requirements include mailing a written notice detailing the proposed rate increases to all single-family and multi-family residential properties at least 45 days before the proposed Public Hearing. On April 30, 2026, the PWSD mailed Proposition 218 notices to all single-family and multi-family property owners and/or customers informing them of the proposed refuse and recycling rate adjustment, date of the public hearing, and their right to file a written protest, indicating that written protests must be mailed or personally delivered by Tuesday, June 16, 2026. The notice of Public Hearing was shared in the May City newsletter and posted on the City’s website and social media platforms. If there is no majority protest, the City Council can adopt the proposed solid waste rate adjustment schedule for Fiscal Years 2026-27 through 2030-31. To date, the City has received four written protests. One of the four protests received referenced water and sewer rates and will not be counted as a valid protest. Therefore, only three written protests have been received. One protest was submitted through e-mail and cannot be counted as a valid written protest. Emailed, faxed, or late postmarked protests cannot be accepted. Even if included in the calculations, the number of protests is significantly below the threshold of 50%. The main issues or concerns received through the protests were general opposition to any increase of rates. ENVIRONMENTAL IMPACT The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), under Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. Public Hearing Refuse & Recycling Service Rates June 16, 2026 Page 8 of 8 FISCAL IMPACT Residential refuse and recycling collection and disposal service rates are considered a fee-for-service that is paid directly to the contractor by the residential customer. The City directly receives various fees from WM, which are impacted by the rate adjustment. Those fees include an Administration Fee for annual street pavement maintenance in the amount of $100,000, plus an annual adjustment consistent with the Consumer Price Index (“CPI”). WM also provides the City with funds to offset the cost of household hazardous waste and sharps collection and disposal. The estimated total for all the fees for FY 2026-27 is $208,714. These fees will be deposited into the City’s Solid Waste Fund. RECOMMENDATION It is recommended that the City Council determine that this item is not a project under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7700 amending the Residential Refuse and Recycling Agreement with Waste Management and setting refuse and recycling rates for the collection and disposal of single-family and multi-family residential solid waste and recyclables pursuant to Section 5120.7 of the Arcadia Municipal Code for Fiscal Years 2026-27 through 2030- 31. Attachments: Resolution No. 7700 Protest Letters Resolution No. 7700 | Exhibit “A” – City of Arcadia Refuse and Recycling Rates 2026-27 City of Arcadia Single-Family Rates Effective 7/1/2026 Total Customer Rate (1 Trash + 1 Recycle + AB939 + Organics) Single-Family Trash & Recycling Service Includes (1)Rate AB 939 Total Base 1 2 3 4 5 6 7 Std 35gal Trash 64gal Recycle 22.74$ 0.30$ 23.04$ 35.51$ 40.89$ 47.18$ 52.97$ 59.69$ 65.76$ 71.85$ Std 64gal Trash 64gal Recycle 22.74$ 0.30$ 23.04$ 35.51$ 40.89$ 47.18$ 52.97$ 59.69$ 65.76$ 71.85$ Std 96gal Trash 64gal Recycle 27.59$ 0.30$ 27.89$ 40.36$ 45.74$ 52.03$ 57.82$ 64.54$ 70.61$ 76.70$ Senior 35gal Trash 64gal Recycle 20.65$ 0.30$ 20.95$ 32.24$ 37.01$ 42.70$ 47.92$ 54.03$ 59.57$ 65.09$ Senior 64 gal Trash 64gal Recycle 20.65$ 0.30$ 20.95$ 32.24$ 37.01$ 42.70$ 47.92$ 54.03$ 59.57$ 65.09$ Senior 96 gal Trash 64gal Recycle 25.01$ 0.30$ 25.31$ 36.60$ 41.37$ 47.06$ 52.28$ 58.39$ 63.93$ 69.45$ Backyard Service Std 96gal Trash64gal Recycle 82.04$ 0.30$ 82.34$ 94.81$ 100.19$ 106.48$ 112.27$ 118.99$ 125.06$ 131.15$ Backyard Service Senior 96gal Trash64gal Recycle 74.96$ 0.30$ 75.26$ 86.55$ 91.32$ 97.01$ 102.23$ 108.34$ 113.88$ 119.40$ Single-Family Organics Carts Number of Carts ->1 2 3 4 5 6 7 64gal Std Organics Cart 12.47$ 17.85$ 24.14$ 29.93$ 36.65$ 42.72$ 48.81$ 64gal Senior Organics Cart 11.29$ 16.06$ 21.75$ 26.97$ 33.08$ 38.62$ 44.14$ 96gal Std Organics Cart 12.47$ 17.85$ 24.14$ 29.93$ 36.65$ 42.72$ 48.81$ 96gal Senior Organics Cart 11.29$ 16.06$ 21.75$ 26.97$ 33.08$ 38.62$ 44.14$ Single Family Other Additional Fees Resume/Reactivation 53.43$ Additional Services Bulky Basic, after 4 free 53.43$ Addl Trash Addl Recycle Extra PU Bulky Senior, after 4 free 48.09$ 11.63$ 11.63$ 17.67$ Recycling Contamination 30.00$ 11.63$ 11.63$ 17.67$ Sharps 46.01$ 14.31$ 14.31$ 17.95$ Bear Unlock Per Cart 9.46$ 10.45$ 10.45$ 16.03$ 3yd Temp Bin, 3 day 190.01$ 10.45$ 10.45$ 16.03$ 3yd Temp Bin, 7 day 227.82$ 12.93$ 12.93$ 16.23$ 3yd Temp Bin, Addl PU 88.91$ 21.47$ 21.47$ 25.44$ 3yd Temp Bin, Daily Rental Over Alloted 10.73$ 19.39$ 19.39$ 22.89$ Bear Cart Purchase Per Cart 308.08$ Single- Family Organics Bins with (1) Trash 96gal Cart and (1) Recycling 96gal Cart included Standard Quantity - Size Base AB939 Total Base AB939 Total Base AB939 Total Base AB939 Total 1 - 1.5 Yard 187.30$ 0.30$ 187.60$ 348.38$ 0.30$ 348.68$ 225.76$ 0.30$ 226.06$ 419.96$ 0.30$ 420.26$ 1 - 3 Yard 213.05$ 0.30$ 213.35$ 396.31$ 0.30$ 396.61$ 251.02$ 0.30$ 251.32$ 466.93$ 0.30$ 467.23$ Senior Quantity - Size Base AB939 Total Base AB939 Total Base AB939 Total Base AB939 Total 1 - 1.5 Yard 168.69$ 0.30$ 168.99$ 313.83$ 0.30$ 314.13$ 203.21$ 0.30$ 203.51$ 378.03$ 0.30$ 378.33$ 1 - 3 Yard 191.80$ 0.30$ 192.10$ 356.81$ 0.30$ 357.11$ 225.94$ 0.30$ 226.24$ 420.28$ 0.30$ 420.58$ Other Organics Fees Reactivation/Cut-Off 52.42$ Organics Contamination 30.00$ Locking Lid 16.94$ Overage 53.43$ Curbside Backyard 1 2 1 2 Total Rate Based on Number of Organics Carts Curbside Backyard 1 2 1 2 Std 35gal Trash Std 64gal Trash Std 96gal Trash Senior 35gal Trash Senior 64 gal Trash Senior 96 gal Trash Backyard Service Std 96gal Trash Backyard Service Senior 96gal Trash Service Resolution No. 7700 | Exhibit “A” – City of Arcadia Refuse and Recycling Rates 2026-27 City of Arcadia Multi-Family Rates Effective 7/1/2026 Required: Customers must have trash, recycling and organics service. Example at Stab service level: (1) 3 Yard Trash Bin 1x/wk $165.08 + (1) 3 Yard Recycle Bin 1x/wk $69.72 + (1) Organics Cart 1x/wk $18.87 + AB939 for 3 units $0.90 =254.57$ Multi-Family Trash STAB Service Quantity - Size 1 2 3 4 5 6 1 - 1.5 Yard 138.15$ 276.32$ 414.48$ 595.40$ 690.76$ 828.93$ 2 - 1.5 Yard 251.30$ 502.61$ 753.87$ 1,005.12$ 1,256.47$ 1,507.73$ 3 - 1.5 Yard 376.94$ 753.88$ 1,130.84$ 1,507.77$ 1,884.70$ 2,261.67$ 4 - 1.5 Yard 502.64$ 1,005.22$ 1,507.80$ 2,010.42$ 2,513.06$ 3,015.63$ 5 - 1.5 Yard 628.25$ 1,256.51$ 1,884.76$ 2,513.07$ 3,141.31$ 3,769.59$ 1 - 3 Yard 165.08$ 306.69$ 495.17$ 660.24$ 825.35$ 990.38$ 2 - 3 Yard 294.98$ 613.43$ 884.90$ 1,179.84$ 1,474.83$ 1,769.78$ 3 - 3 Yard 424.97$ 920.08$ 1,274.81$ 1,699.74$ 2,124.69$ 2,549.64$ 4 - 3 Yard 554.89$ 1,226.74$ 1,664.58$ 2,219.43$ 2,774.29$ 3,128.79$ 5 - 3 Yard 684.86$ 1,533.43$ 2,054.46$ 2,739.22$ 3,424.07$ 4,108.82$ 1 - 6 Yard 309.51$ 619.00$ 928.47$ 1,237.96$ 1,547.45$ 1,856.97$ 3- Yard Split Bin Trash & Organics325.82$ 624.58$ N/A N/A N/A N/A Multi-Family Recycling STAB Service Quantity - Size 1 2 3 4 5 6 1 - 96gal 34.98$ 69.97$ 104.96$ 139.99$ 174.95$ 209.95$ 1 - 1.5 Yard 52.49$ 104.96$ 157.47$ 209.95$ 262.43$ 314.91$ 2 - 1.5 Yard 104.96$ 209.95$ 314.91$ 419.90$ 524.85$ 629.86$ 3 - 1.5 Yard 157.47$ 314.91$ 472.38$ 629.86$ 787.32$ 944.76$ 4 - 1.5 Yard 209.95$ 419.90$ 629.86$ 839.79$ 1,049.72$ 1,259.66$ 5 - 1.5 Yard 262.43$ 524.85$ 787.32$ 1,049.72$ 1,312.16$ 1,574.58$ 1 - 3 Yard 69.72$ 139.39$ 209.12$ 278.83$ 348.49$ 418.20$ 2 - 3 Yard 139.39$ 278.83$ 418.20$ 557.62$ 697.02$ 836.43$ 3 - 3 Yard 209.12$ 418.20$ 627.33$ 836.43$ 1,045.51$ 1,254.63$ 4 - 3 Yard 278.83$ 557.62$ 836.43$ 1,115.23$ 1,394.04$ 1,672.84$ 5 - 3 Yard 348.49$ 697.02$ 1,045.51$ 1,394.04$ 1,742.54$ 2,091.06$ Multi-Family Split Bin - Trash/Recycling STAB Service Quantity - Size 1 2 3 4 5 6 1 - 2 Yard 180.31$ 360.58$ 540.89$ 763.94$ 901.45$ 1,081.72$ 2 - 2 Yard 335.56$ 671.14$ 1,006.67$ 1,342.19$ 1,677.80$ 2,013.37$ 3 - 2 Yard 503.34$ 1,006.68$ 1,510.04$ 2,013.41$ 2,516.74$ 3,020.11$ 4 - 2 Yard 671.16$ 1,342.30$ 2,013.43$ 2,684.57$ 3,355.74$ 4,026.86$ 5 - 2 Yard 838.92$ 1,677.85$ 2,516.78$ 3,355.75$ 4,194.68$ 5,033.63$ 1 - 3 Yard 190.65$ 381.28$ 571.95$ 805.35$ 953.21$ 1,143.83$ 2 - 3 Yard 356.26$ 712.55$ 1,068.80$ 1,425.02$ 1,781.33$ 2,137.58$ 3 - 3 Yard 534.40$ 1,068.81$ 1,603.22$ 2,137.61$ 2,672.01$ 3,206.45$ 4 - 3 Yard 712.57$ 1,425.11$ 2,137.64$ 2,850.21$ 3,562.78$ 4,275.28$ 5 - 3 Yard 890.67$ 1,781.37$ 2,672.06$ 3,562.79$ 4,453.48$ 5,344.18$ 1 - 6 Yard 234.79$ 446.09$ 704.29$ 939.07$ 1,173.85$ 1,408.59$ 2 - 6 Yard 434.39$ 892.25$ 1,303.11$ 1,737.45$ 2,171.85$ 2,606.19$ 3 - 6 Yard 634.11$ 1,338.30$ 1,902.11$ 2,536.17$ 3,170.21$ 3,804.27$ 4 - 6 Yard 833.71$ 1,784.35$ 2,500.99$ 3,334.66$ 4,168.33$ 4,801.64$ 5 - 6 Yard 1,033.35$ 2,230.45$ 3,099.98$ 4,133.26$ 5,166.61$ 6,199.86$ 0.30$ Multi-Family Organics Cart - STAB 1 - 96gal, 1x/wk 18.87$ 2 - 96gal, 1x/wk 37.70$ 3 - 96gal, 1x/wk 56.57$ 4 - 96gal, 1x/wk 75.45$ 5 - 96gal, 1x/wk 94.29$ Multi-Family Organics Bin- STAB 2-Yard 1x/wk 180.72$ 2 - Yard 2x/wk 343.36$ Frequency of Pickup Per Week AB939 Fee, per unit, per month, in additonal to the above Trash or Split Bin Rates Frequency of Pickup Per Week Frequency of Pickup Per Week Resolution No. 7700 | Exhibit “A” – City of Arcadia Refuse and Recycling Rates 2026-27 Required: Customers must have trash, recycling and organics service. Example at Dismount service level: (1) 3 Yard Trash Bin 1x/wk $186.03 + (1) 3 Yard Recycle Bin 1x/wk $78.76 + (1) Organics Cart 1x/wk $25.67 + AB939 for 3 units $0.90 = 291.36$ Multi-Family Trash DISMOUNT Service Quantity - Size 1 2 3 4 5 6 1 - 1.5 Yard 155.67$ 311.37$ 467.03$ 622.73$ 778.36$ 934.05$ 2 - 1.5 Yard 283.20$ 566.39$ 849.59$ 1,132.77$ 1,415.94$ 1,699.12$ 3 - 1.5 Yard 424.76$ 849.50$ 1,274.27$ 1,699.02$ 2,123.79$ 2,548.47$ 4 - 1.5 Yard 566.34$ 1,132.74$ 1,699.03$ 2,265.37$ 2,752.60$ 3,398.09$ 5 - 1.5 Yard 707.95$ 1,415.87$ 2,123.82$ 2,831.75$ 3,539.70$ 4,247.67$ 1 - 3 Yard 186.03$ 338.92$ 539.03$ 718.55$ 898.42$ 1,078.02$ 2 - 3 Yard 327.23$ 677.71$ 981.53$ 1,308.76$ 1,635.91$ 1,963.13$ 3 - 3 Yard 474.65$ 1,015.96$ 1,423.97$ 1,898.65$ 2,373.31$ 2,847.99$ 4 - 3 Yard 622.13$ 1,355.54$ 1,866.43$ 2,488.58$ 3,110.75$ 3,732.83$ 5 - 3 Yard 769.70$ 1,694.45$ 2,308.95$ 3,078.64$ 3,848.26$ 4,617.92$ 1 - 6 Yard 338.59$ 677.22$ 1,015.73$ 1,354.30$ 1,692.84$ 2,031.45$ Multi-Family Recycling DISMOUNT Service Quantity - Size 1 2 3 4 5 6 1 - 96gal 39.52$ 79.06$ 118.59$ 158.17$ 197.68$ 237.22$ 1 - 1.5 Yard 59.31$ 118.61$ 177.92$ 237.23$ 296.53$ 355.87$ 2 - 1.5 Yard 118.61$ 237.23$ 355.87$ 474.48$ 593.09$ 711.71$ 3 - 1.5 Yard 177.92$ 355.87$ 533.79$ 711.71$ 889.63$ 1,067.56$ 4 - 1.5 Yard 237.23$ 474.48$ 711.71$ 948.95$ 1,186.18$ 1,423.42$ 5 - 1.5 Yard 296.53$ 593.09$ 889.63$ 1,186.18$ 1,482.74$ 1,779.30$ 1 - 3 Yard 78.76$ 157.52$ 236.30$ 315.06$ 393.82$ 472.59$ 2 - 3 Yard 157.52$ 315.06$ 472.59$ 630.10$ 787.64$ 945.16$ 3 - 3 Yard 236.30$ 472.59$ 708.86$ 945.16$ 1,181.45$ 1,417.74$ 4 - 3 Yard 315.06$ 630.10$ 945.16$ 1,260.22$ 1,575.27$ 1,890.31$ 5 - 3 Yard 393.82$ 787.64$ 1,181.45$ 1,575.27$ 1,969.08$ 2,362.90$ Multi-Family Split Bin - Trash/Recycling DISMOUNT Service Quantity - Size 1 2 3 4 5 6 1 - 2 Yard 204.63$ 409.27$ 613.90$ 818.54$ 1,023.16$ 1,227.80$ 2 - 2 Yard 381.11$ 762.22$ 1,143.33$ 1,524.43$ 1,905.51$ 2,286.62$ 3 - 2 Yard 571.64$ 1,143.24$ 1,714.90$ 2,286.53$ 2,858.15$ 3,429.69$ 4 - 2 Yard 762.16$ 1,524.39$ 2,286.54$ 3,048.70$ 3,731.75$ 4,573.07$ 5 - 2 Yard 952.76$ 1,905.44$ 2,858.20$ 3,810.89$ 4,763.65$ 5,716.41$ 1 - 3 Yard 214.98$ 429.99$ 644.96$ 859.95$ 1,074.92$ 1,289.91$ 2 - 3 Yard 401.81$ 803.63$ 1,205.46$ 1,607.24$ 2,009.03$ 2,410.81$ 3 - 3 Yard 602.69$ 1,205.36$ 1,808.05$ 2,410.74$ 3,013.43$ 3,616.03$ 4 - 3 Yard 803.58$ 1,607.21$ 2,410.75$ 3,214.31$ 3,938.78$ 4,821.53$ 5 - 3 Yard 1,004.49$ 2,008.95$ 3,013.47$ 4,017.94$ 5,022.45$ 6,026.97$ 1 - 6 Yard 264.80$ 496.45$ 775.33$ 1,033.60$ 1,292.22$ 1,550.60$ 2 - 6 Yard 484.76$ 992.77$ 1,454.10$ 1,938.86$ 2,423.54$ 2,908.28$ 3 - 6 Yard 710.96$ 1,488.54$ 2,132.85$ 2,843.81$ 3,554.77$ 4,265.72$ 4 - 6 Yard 937.19$ 1,985.63$ 2,811.59$ 3,748.81$ 4,686.03$ 5,623.15$ 5 - 6 Yard 1,163.53$ 2,482.09$ 3,490.40$ 4,653.90$ 5,817.36$ 6,980.80$ Multi-Family Organics Cart - DISMOUNT 96gal, 1x/wk 25.67$ 2 - 96gal, 1x/wk 51.35$ 3 - 96gal, 1x/wk 77.03$ 4 - 96gal, 1x/wk 102.71$ 5 - 96gal, 1x/wk 128.39$ Multi-Family Organics Bin - DISMOUNT 2-Yard 1x/wk 226.44$ 2 - Yard 2x/wk 429.20$ Frequency of Pickup Per Week Frequency of Pickup Per Week Frequency of Pickup Per Week Resolution No. 7700 | Exhibit “A” – City of Arcadia Refuse and Recycling Rates 2026-27 Required: Customers must have trash, recycling and organics service. Example at Stage service level: (1) 3 Yard Trash Bin 1x/wk $194.26 + (1) 3 Yard Recycle Bin 1x/wk $85.71 + (1) Organics Cart 1x/wk $30.92 + AB939 for 3 units $0.90 = 311.79$ Multi-Family Trash STAGE Service Quantity - Size 1 2 3 4 5 6 1 - 1.5 Yard 170.28$ 340.63$ 510.89$ 681.18$ 851.49$ 1,021.80$ 2 - 1.5 Yard 309.80$ 619.60$ 929.39$ 1,239.12$ 1,548.91$ 1,858.70$ 3 - 1.5 Yard 464.71$ 929.40$ 1,394.05$ 1,858.72$ 2,323.42$ 2,788.09$ 4 - 1.5 Yard 619.61$ 1,239.14$ 1,858.76$ 2,478.32$ 3,097.96$ 3,717.53$ 5 - 1.5 Yard 774.47$ 1,548.92$ 2,323.38$ 3,097.89$ 3,872.36$ 4,646.83$ 1 - 3 Yard 194.26$ 368.15$ 582.96$ 777.28$ 971.58$ 1,165.89$ 2 - 3 Yard 358.88$ 736.31$ 1,078.02$ 1,437.39$ 1,796.76$ 2,156.11$ 3 - 3 Yard 524.44$ 1,104.43$ 1,573.27$ 2,097.69$ 2,622.10$ 3,146.49$ 4 - 3 Yard 689.48$ 1,472.59$ 2,068.50$ 2,758.04$ 3,447.56$ 4,137.07$ 5 - 3 Yard 854.51$ 1,840.74$ 2,563.57$ 3,418.07$ 4,272.63$ 5,127.13$ 1 - 6 Yard 367.36$ 734.83$ 1,102.07$ 1,469.42$ 1,836.76$ 2,204.15$ Multi-Family Recycling STAGE Service Quantity - Size 1 2 3 4 5 6 1 - 96gal 43.01$ 86.04$ 129.06$ 172.14$ 215.14$ 258.17$ 1 - 1.5 Yard 64.55$ 129.10$ 193.68$ 258.25$ 322.79$ 387.34$ 2 - 1.5 Yard 129.10$ 258.25$ 387.34$ 516.47$ 645.59$ 774.70$ 3 - 1.5 Yard 193.68$ 387.34$ 581.03$ 774.70$ 968.38$ 1,162.04$ 4 - 1.5 Yard 258.25$ 516.47$ 774.70$ 1,032.93$ 1,291.17$ 1,549.39$ 5 - 1.5 Yard 322.79$ 645.59$ 968.38$ 1,291.17$ 1,613.96$ 1,936.73$ 1 - 3 Yard 85.71$ 171.47$ 257.18$ 342.94$ 428.66$ 514.40$ 2 - 3 Yard 171.47$ 342.94$ 514.40$ 685.89$ 857.34$ 1,028.81$ 3 - 3 Yard 257.18$ 514.40$ 771.60$ 1,028.81$ 1,286.01$ 1,543.21$ 4 - 3 Yard 342.94$ 685.89$ 1,028.81$ 1,371.73$ 1,714.67$ 2,057.59$ 5 - 3 Yard 428.66$ 857.34$ 1,286.01$ 1,714.67$ 2,143.34$ 2,572.00$ Multi-Family Split Bin - Trash/Recycling STAGE Service Quantity - Size 1 2 3 4 5 6 1 - 2 Yard 224.48$ 449.03$ 673.53$ 898.03$ 1,122.54$ 1,347.02$ 2 - 2 Yard 418.21$ 836.43$ 1,254.60$ 1,672.78$ 2,090.97$ 2,509.20$ 3 - 2 Yard 627.34$ 1,254.62$ 1,881.92$ 2,509.22$ 3,136.53$ 3,763.80$ 4 - 2 Yard 836.45$ 1,672.80$ 2,509.25$ 3,345.62$ 4,182.08$ 5,018.46$ 5 - 2 Yard 1,045.51$ 2,090.98$ 3,136.49$ 4,182.03$ 5,227.52$ 6,273.01$ 1 - 3 Yard 234.83$ 469.74$ 704.57$ 939.44$ 1,174.31$ 1,409.14$ 2 - 3 Yard 438.92$ 877.86$ 1,316.72$ 1,755.59$ 2,194.49$ 2,633.40$ 3 - 3 Yard 658.38$ 1,316.74$ 1,975.08$ 2,633.43$ 3,291.81$ 3,950.13$ 4 - 3 Yard 877.87$ 1,755.61$ 2,633.47$ 3,511.25$ 4,389.12$ 5,266.91$ 5 - 3 Yard 1,097.27$ 2,194.50$ 3,291.75$ 4,389.06$ 5,486.32$ 6,583.56$ 1 - 6 Yard 280.00$ 539.63$ 840.16$ 1,120.22$ 1,400.25$ 1,680.28$ 2 - 6 Yard 530.35$ 1,079.25$ 1,592.41$ 2,123.24$ 2,654.09$ 3,184.92$ 3 - 6 Yard 781.63$ 1,618.83$ 2,344.85$ 3,126.49$ 3,908.10$ 4,689.71$ 4 - 6 Yard 1,032.43$ 2,158.49$ 3,097.31$ 4,129.78$ 5,162.24$ 6,194.65$ 5 - 6 Yard 1,283.16$ 2,698.08$ 3,849.57$ 5,132.75$ 6,415.96$ 7,699.14$ Multi-Family Organics Cart - STAGE 96gal, 1x/wk 30.92$ 2 - 96gal, 1x/wk 61.85$ 3 - 96gal, 1x/wk 92.77$ 4 - 96gal, 1x/wk 123.70$ 5 - 96gal, 1x/wk 154.64$ Multi-Family Organics Bin - STAGE 2-Yard 1x/wk 284.14$ 2 - Yard 2x/wk 538.82$ Frequency of Pickup Per Week Frequency of Pickup Per Week Frequency of Pickup Per Week Resolution No. 7700 | Exhibit “A” – City of Arcadia Refuse and Recycling Rates 2026-27 0.30$ Multi-Family Organics Cart - STAB 1 - 96gal, 1x/wk 18.87$ 2 - 96gal, 1x/wk 37.70$ 3 - 96gal, 1x/wk 56.57$ 4 - 96gal, 1x/wk 75.45$ 5 - 96gal, 1x/wk 94.29$ Multi-Family Organics Bin- STAB 2-Yard 1x/wk 180.72$ 2 - Yard 2x/wk 343.36$ AB939 Fee, per unit, per month, in additonal to the above Trash or Split Bin Rates Multi-Family Organics Cart - DISMOUNT 96gal, 1x/wk 25.67$ 2 - 96gal, 1x/wk 51.35$ 3 - 96gal, 1x/wk 77.03$ 4 - 96gal, 1x/wk 102.71$ 5 - 96gal, 1x/wk 128.39$ Multi-Family Organics Bin - DISMOUNT 2-Yard 1x/wk 226.44$ 2 - Yard 2x/wk 429.20$ Multi-Family Organics Cart - STAGE 96gal, 1x/wk 30.92$ 2 - 96gal, 1x/wk 61.85$ 3 - 96gal, 1x/wk 92.77$ 4 - 96gal, 1x/wk 123.70$ 5 - 96gal, 1x/wk 154.64$ Multi-Family Organics Bin - STAGE 2-Yard 1x/wk 284.14$ 2 - Yard 2x/wk 538.82$ Multi-Family Other Fees 1.5 Yard Extra PU 80.89$ 3 Yard Extra PU 105.27$ 6 Yard Split Bin Extra PU 166.32$ Contamination 30.00$ Reactivation/Cut-Off 52.42$ Locking Lid 16.94$ Overage 71.04$ Exhibit “B” 1 CITY OF ARCADIA THIRD AMENDMENT TO RESIDENTIAL REFUSE AND RECYCLING AGREEMENT This Third Amendment to the Residential Refuse and Recycling Agreement (“Third Amendment”) is made and entered into on this, _______ day of ___________, 2026 (the “Effective Date”) by and between the CITY OF ARCADIA, a Municipal Corporation, hereinafter referred to as ”City”, and WASTE MANAGEMENT OF SAN GABRIEL/POMONA VALLEY, hereinafter referred to as ”Contractor”. WHEREAS, the City is responsible for providing solid waste handling services to its citizens, including source reduction, recycling activities and the collection, transfer, and disposal of solid waste within the City boundaries subject to solid waste handling jurisdiction, as provided in Section 40057 through 40059 of the Public Resources Code (Waste Management Act (the “Act”); and WHEREAS, the purposes of the Act are to promote the reduction, recycling, and reuse of solid waste to the maximum extent feasible in an efficient and cost-effective manner, to improve regulation of landfills, to streamline permitting procedures and to specify the role of local agencies to develop and implement integrated waste management programs, including setting the level of services, charges and the nature, location, and extent of the provision of solid waste handling services; and WHEREAS, the collection of residential solid waste and recycling is crucial to the health, safety, and welfare of the City. WHEREAS, City and Contractor entered into an agreement entitled Residential Refuse and Recycling Agreement dated March 10, 2009 (“Agreement”) for the collection of residential solid waste and recyclables in the City; and WHEREAS, City and Contractor entered into an amendment of that Agreement entitled “First Amendment” to the Residential Refuse and Recycling Agreement dated October 16, 2013, whereby term of the Agreement, among other things, was extended through June 30, 2021; and Exhibit “B” 2 WHEREAS, City and Contractor entered into an amendment of that Agreement entitled “Second Amendment” to the Residential Refuse and Recycling Agreement dated July 1, 2021, whereby term of the Agreement, among other things, was extended through June 30, 2026; and WHEREAS, City and Contractor are entered into an amendment of the Agreement entitled “Third Amendment” to the Residential Refuse and Recycling Agreement dated June 16, 2026, whereby the term of the Agreement, among other things, was extended through June 30, 2031; and WHEREAS the service rates will continue to include an annual rate Adjustment Methodology Formula that includes two indices: a Disposal/Diversion Component and a Service Component; and WHEREAS the Disposal/Diversion Component consists of costs for tipping fees charged at landfills for trash, tipping fees charged at composting facilities for green waste/food waste, and recycling fees at processing/recycling facilities; and WHEREAS the Disposal/Diversion Component is given a 40% weight in the calculation of the new rate; and WHEREAS the Service Component is based on monthly percent changes in the Consumer Price Index (“CPI”) for Los Angeles-Long Beach-Anaheim, between the current year and the prior year, and a 60% weight in the calculation of the new rate; and WHEREAS, the proposed service rate adjustment includes an increase in labor fees totaling $154,019.79, that would be phased in over two years for Fiscal Years (“FY”) 2026-27 and 2027-28 and would be divided evenly, with 50% in Single-Family rates and 50% in Multi-Family rates; and WHEREAS, effective July 1, 2026, Single-Family rates will be raised by the annual rate adjustment + the $0.28 labor fee for standard services; and WHEREAS, effective July 1, 2026, Multi-Family rates will be raised by the annual rate adjustment + $0.09 per yard per pickup labor fee for standard services; and Exhibit “B” 3 WHEREAS, effective July 1, 2026, the split bin rate will be raised by the annual rate adjustment + the $0.58 labor fee for trash services; and WHEREAS, in FY 2028-29 through FY 2030-31, there will be no labor fees, and the rate adjustment formula will go back to using the two indices included in the rate adjustment formula: 60% of the Consumer Price Index and 40% of the Disposal/Diversion rate adjustment factor; and WHEREAS, contamination rates must follow the regional average and not the annual rate adjustment formula; and WHEREAS, Contractor will add an additional Mulch Giveaway Event each fiscal year, changing Section B.2.c. of the Agreement to the following: Mulch. Contractor shall provide forty (40) cubic yards of mulch for three City-sponsored events per calendar year; and WHEREAS, as permitted in Section DD of the Agreement, should the City and Contractor desire to extend the term and modify certain performance requirements of the Agreement further, a Fourth Amendment is required before June 30, 2031. IN WITNESS WHEREOF, said City has caused its corporate name and seal to be hereunto subscribed and affixed by the Mayor and City Clerk, both thereunto duly authorized, and said Contractor has hereunto subscribed to his name. [SIGNATURES ON NEXT PAGE] Exhibit “B” 4 CITY OF ARCADIA A Municipal Corporation By: __________________________ Dominic Lazzaretto City Manager ATTEST: ____________________________ City Clerk APPROVED AS TO FORM: ____________________________ Michael J. Maurer City Attorney Waste Management, INC. By: __________________________ President’s Signature Name _____________________ By: ___________________________ Secretary Signature Name ______________________