Recology wants 44% rate increase to pick up trash

Recology, the residential and commercial trash collector for Mariposa County, is asking for a whopping 44 percent rate increase.

Reeling from the sticker shock, Mariposa County officials are asking for the evidence and calculations that would justify such a massive increase.

In a letter to the county last month, Recology said the company wants to negotiate an updated agreement that reflects improvements to their facility, higher wages and an updated fleet.

The last agreement expired in 2021, but automatically renews unless either party provides a 180 day notice to terminate.

That agreement provides a 10 percent profit after the net cost of hauling operations minus tip fees and income from the YCS haul.

“Upon analysis, we have found that Recology needs a 44 percent increase in its rates to meet the minimum 10 percent net profit allowed by our agreement,” wrote Scott Pardini, a Vice President and Regional Manager for Recology.

Pardini wrote that the company wants the rate increase to go into effect by July 2026.

It is not the first time Recology has asked for a big hike it its rates.

In 2019, the company asked for a 22 percent “special rate adjustment.”

Instead, the board of supervisors approved an 8 percent raise for two years and a three year contract extension.

This was in addition to other annual rate adjustments over the next three years of 3.19 percent in 2021, 3.57 percent 2022 and 4.49 percent in 2023.

In its response last month to the latest 44 percent rate proposal, Mariposa County Public Works asked for documentation that justifies the increase under a specific profit formula outlined in the contract before it would consider an increase.

“At this time, the county cannot determine whether the proposed 44 percent increase satisfied the agreement’s requirements,” wrote Public Works Director Shannon Hansen.

That data would include detailed operating cost breakdowns, revenue and expense statements and identification of cost increases.

The county is also asking for “a clear explanation of how the 44 percent figure was derived and why a lesser increase would not meet contractual requirements,” Hansen wrote.

A Recology spokesperson, Robert Reed, was asked whether the proposed 44 percent rate increase was a negotiating strategy rather than a true indication of rising business costs.

In response, Reed provided a statement that ignored the question.

“Recology Mariposa’s focus is to work in partnership with Mariposa County to provide superior service to our customers at fair and reasonable rates,” the statement said.

“We remain committed to delivering safe, reliable collection services to the community and to working collaboratively with the county on solutions that support long-term service stability,” the statement continued.

Recology Mariposa has provided weekly and biweekly trash collection services since 2017, when the company purchased Mariposa County Total Waste Systems from the Ratto Group of Companies, Inc.

Recology provides services to more than 100 municipalities in California. The company is asking for rate increases in other communities as well.

Last year San Francisco approved a 24 percent increase for Recology services, along with San Mateo (21 percent) and Eureka (9 percent), Redwood City (15 percent). Davis approved a 15 percent increase for Recology last month.