SAN FRANCISCO, November 15, 2022 – Recology and the City Controller’s Office have agreed to the terms of an agreement to improve the rate-setting process for waste hauling services in San Francisco and resolve issues related to past rate-setting processes.

“Recology strongly supports efforts to increase transparency and improve the rate-setting process in San Francisco,” said Sal Coniglio, Recology CEO. “We appreciate and respect the collaborative work we’ve accomplished with the San Francisco Controller’s Office and other city officials as we work towards a new era of accountability. Together, we share the same goal: providing the most environmentally sound refuse service, at competitive rates for our customers, with a fair wage for all Recology employee-owners.”

The agreement contains a number of concrete mechanisms and commitments to improve rate-setting and increase transparency in the future, including:

  • The Rate Year will be aligned with Recology’s fiscal year to allow clearer comparisons between rate reports and audited financial statements.
  • Recology’s San Francisco companies’ audited financial statements will be posted annually on a public website.
  • A “balancing” mechanism will be instituted to reconcile actual profits earned against a target profit level so rates can be adjusted over time if Recology’s San Francisco companies earn profits above, or below, an agreed-upon target.
  • Real property used to provide service to San Francisco ratepayers will be accounted for, including a mechanism to credit ratepayers for their contributions toward the purchase of a property should Recology subsequently sell it. In addition, once the purchasing and financing costs of a property have been recovered, the rates will no longer include any rental charges for that property.
  • New refuse rates will be adopted by October 1, 2023, after a public rate-setting process.

Coniglio confirmed that Recology plans to submit a rate application to set new rates in early 2023.

“We look forward to building on the shared progress we’ve made with the Controller’s Office over the past year as we continue to strengthen the rate-setting process together,” Coniglio concluded.