Thursday, October 1, 2026
More city control over solid waste collection could come at a cost for customers in Lacey.
City officials are considering whether to pursue a franchise agreement with LeMay that could, over time, put the city in a position to negotiate its own solid waste collection contract. The Lacey City Council reviewed options during a work session on Aug. 11.
LeMay, doing business as Pacific Disposal, provides garbage, recycling and yard waste collection in Lacey. The Washington Utilities and Transportation Commission (UTC) regulates those services and rates.
Lacey cannot charge a solid waste franchise fee through its current arrangement. To add one, the city must first negotiate a UTC transition franchise agreement with LeMay. The city then must use UTC service levels and rates for seven to 10 years before it could pursue a contract with a private hauler.
Leaving the system unchanged avoids a city-initiated rate increase and leaves administrative duties with the UTC.
However, Lacey gets no additional general fund revenue, no potential free refuse collection at city facilities and no future private contracting option.
A transition franchise without a franchise fee could preserve customer rates, although city staff said that is not guaranteed. It could also provide free refuse collection for city facilities, now estimated to cost about $100,000 annually. The city assumes contract administration under that option.
Adding a franchise fee could provide general fund revenue and allow the city to pursue its own collection contract after seven to 10 years. However, customers pay more for service, and the city assumes responsibility for contract compliance.
Another option is increasing the existing utility tax or applying it to recycling, yard waste and construction or demolition waste in addition to garbage. Customers would also pay more through this option, but a utility tax change alone does not provide a path to a future city-negotiated collection contract.
Deputy Mayor Malcolm Miller said reducing costs for people remains a council goal.
“We are just trying to save our residents some money. It’s already an expensive place to live. We know that we have housing needs,” said Miller, adding the city is looking at solid waste service as one possible source of savings.
Garbage rates could change regardless of the city’s decision. A transition franchise generally follows UTC service levels and rates, meaning future UTC rate increases could also raise rates in Lacey.
Jeanette Jurgensen of Bin There Consulting and Epicenter Services, a solid waste collection contract consultant, addressed potential rate adjustments.
“Haulers may submit a rate package to the UTC at any time,” Jurgensen said. “Generally, it’s every two to three years when they have significant rises in costs due to fuel, tipping fees and other things.”
Other cost pressures could push rates higher as well.
During public comment, attorney Michael Howard, who represents trash pickup services company Waste Connections, said Thurston County disposal fees are expected to increase 13.5 percent this year and another 13.5 percent next year. He also identified fuel costs and organics collection requirements as factors that could increase rates.
The findings followed a June 22 meeting between city staff and LeMay, and were presented to the council for review only.
7 comments on this item Please log in to comment by clicking here
olyhiker
I have so little waste that I think once a month pickup would be sufficient. I suppose that isn't available.
Tuesday, August 18 Report this
Eema
Woof, over a 25% rate increase in the next two years? Was privatization of a public service a good idea?
Tuesday, August 18 Report this
Acadian04
Trying to see how Lacey residents benefit from this proposed change. Higher costs, just what we need.
Wednesday, August 19 Report this
KEW100
The Recycling Reform Act by 2030 should provide additional funds to local governments for recycling costs. Further, additional monies could be saved by reducing containers in the waste stream through a bottle redemption program. An added benefit of a bottle bill is also major reduction in litter.
https://ecology.wa.gov/waste-toxics/reducing-recycling-waste/our-recycling-programs/recycling-reform-act
Wednesday, August 19 Report this
Olympiansince64
“City initiated rate increases “ =$$
“Administrative fees” =$$
“FREE refuse disposal for city” =$$ (citizens will have to pay for this!)
“Franchise fee” =$$
“Increased utility tax” =$$
“Utility tax applied to all forms of waste” =$$
“Rate increases as recommended by UTC”=$$
Seven additional taxes and fees that will be levied , all in an effort to reduce costs for the citizens?
Sure, that makes sense
Wednesday, August 19 Report this
longtimeresident
I got lost in the 3rd paragraph!
Wednesday, August 19 Report this
OlyBlues
Olympiansince64 has it right! The UTC is a completely useless government body that seemingly rubber stamps these private entities ad their increases while collecting huge salaries. They "regulate" PSE who continues to increase our rates under their watch. And let's not forget the UTC's stellar job regulating Ride the Ducks Seattle that due to their horrible oversight and negligence allowed this carrier to continue operating with known faulty vehicles to the point people were killed and permanently disabled. UTC does not have a good track record. Lacey needs to be doing everything they can to keep costs low for their residents.
Saturday, August 22 Report this