Should Portland adopt solid waste and recycling rates and fees for franchised residential collection and the commercial tonnage fee, effective July 1, 2025 (amend…

Portland Ord. No. 191534 (Franchise Agreement) governs rate-setting process for residential solid waste and recycling fees. This agreement with collection service providers requires annual rate review and requires the City Council to set rates at a level that covers overall cost of service, target operating margin, plus the franchise fee. The franchise system incentivizes our collection service providers (haulers) to deliver service in a cost-effective and efficient way because each hauler is not guaranteed a specific profit. The proposed rates for residential curbside collection result from the annual rate review required by the franchise with residential haulers. Costs incurred by the haulers during 2024 have been independently reviewed by a certified public accounting agency and adjustments made to reflect any changes. This ordinance also increases the commercial tonnage fee charged to permitted garbage and recycling collection companies for each ton of garbage collected from business and multifamily accounts. The proposed rates for residential curbside collection result from the annual rate review required by the franchise with residential haulers. Costs incurred by the haulers during 2024 have been independently reviewed by a certified public accounting agency and adjustments made to reflect any changes. The City has significantly expanded its public trash can program, increased programming for multifamily properties, and used these as opportunities to include haulers that historically have not been part of the residential franchise system. In addition, for FY 2025-26 the Solid Waste Management Fund is proposed to supply an additional $1M for the Impact Reduction Program (a total of just over $2M) on a one-time basis to support cleanup of waste associated with unsheltered homelessness. To cover the costs of the public trash program and support the unsheltered waste cleanup, this Ordinance increases the City’s Commercial Tonnage Fee, by $1.00 per ton, from $16.60 to $17.60, beginning FY 2025-2026. (Note, this is a reduction from the prior SWMF forecast which planned for a $2 increase in FY 2025-26.)

The reviewed sources do not clearly identify every existing policy, service, contract, or obligation that would remain unchanged.

This proposal concerns land use & permitting and requires action through Portland’s public legislative process.

The residential curbside collection rates were developed in accordance with the methodology laid out in the franchise agreement that governs residential garbage, recycling, and yard debris/food scrap collection, which requires the City Council to adopt rates that cover the costs of service, the operating margin, and pass-through expenses (such as the franchise fee). Adjusting residential rates to meet costs identified in the rate review process will increase monthly fees roughly 4 to 4.5 percent for most customers, for residential garbage, recycling, and composting service. This rate increase will result in the recommended monthly rate for the most common service level, the 35-gallon cart, increasing $1.80 from $42.00 to $43.80 per month. As a result of the proposed commercial tonnage fee, permitted commercial garbage and recycling collection companies will pay the City an additional $1 per ton for commercial garbage collected in Portland. Bureau of Planning and Sustainability staff sent an email to all permitted garbage and recycling companies on April 11, 2025, announcing the proposed increase. In considering the community impacts of this rate-setting process, BPS staff note the following: Garbage and recycling haulers provide a critical community service with a record of success. When costs increase, the City franchise agreement requires the City to address these cost increases via adjusted rates. If it fails to do so, the haulers will have to absorb the increased cost. The service has a track record of being very cost effective and performing well. After adjusting for inflation, even with the recommended increase, costs remain at or below the cost for the same service in 2012. Garbage and recycling service is not required because a property owner can self-haul their garbage and recycling, except that City code directs landlords to ensure service is provided to tenants, and all property owners must comply with Portland City Code Title 29 (Property Maintenance Regulations) and other health and safety laws and regulations. The community benefits from climate and sustainability programs and public trash collection programs funded by the franchise fee. This is a fee for service system; customers pay effectively what it costs to provide the service, to oversee it, and to deliver solid waste and sustainability related programs directed and/or required by either state, regional, or City policy.