Council notes: New recycling processing contract for Seattle, Social Housing Developer charter changes

(Image: SPU)

The weekly full meeting of the Seattle City Council includes a vote a new contract for processing Seattle’s 215,000 to 220,000 tons of municipal recycling per year.

• New recycling processing contract: Already blessed by council president Joy Hollingsworth and the utilities committee, the full council Tuesday is set to approve a new a new five-year processing contract with Waste Management that will pay the company in the range of $6 million a year for its services.. The agreement, which includes two three-year extension options, is slated to take effect in April 2027 following the expiration of the city’s current contract with Rabanco. While the contract will not begin operations until next year, Seattle Public Utilities is seeking City Council authorization now to grant Waste Management sufficient lead time to build out a new recycling material receiving facility and deploy advanced sorting equipment.The proposal would have a projected first-year price tag of $6.4 million in 2027, representing a notable cost increase since the last processing contract was signed nearly two decades ago in 2007. SPU officials say that recycling commodity market prices are expected to decline, driving up net processing costs by an additional $4.2 million through 2030 compared to previous rate studies. SPU says that the city’s solid waste fund performs strongly, meaning the contract is not expected to impact approved customer rate paths through 2028.

  The proposed contract introduces performance standards aimed at minimizing environmental waste. Waste Management will utilize upgraded technology to improve sorting efficiency and capture high-grade commodities while preventing recyclable materials from slipping into landfills. Officials expect the upgraded sorting to maximize commodity revenues and significantly reduce costly garbage disposal fees.

  Despite the challenges from “aspirational recycling,” Seattle is recognized for a robust curbside programs that process approximately 215,000 to 220,000 tons of recycling per year. The city’s framework splits operations between contracted collection haulers, like Recology and Waste Management, and high-volume processing facilities. Seattle Public Utilities data shows a residential recycling capture rate of 74% — above the city’s target of 70%.

• Seattle Social Housing Developer charter changes: The full council is also prepared to sign off on a proposed resolution that would allow a roster of changes to the charter for the newly created Seattle Social Housing Developer. The proposed changes have been recommended by the Social Housing board and would allow the public developer to form a company to purchase and develop properties as well as make other operational changes like allowing rental rates to be based on “more than just the cost of building operations, in order to allow for cross-subsidization of buildings or the use of building revenue to support bond payments,” according to a presentation (PDF) on the proposal. The changes would also open up SSHD properties to be used as collateral for debt and allow SSHD to execute regulatory agreements under programs like the Mandatory Housing Affordability. CHS reported this winter on stronger than expected funding for the new SSHD giving the developer a strong start in its mission to create and acquire affordable housing. Officials said the voter-approved 5% tax on employers that pay any employee more than $1 million in compensation climbed above $115 million. The city began collecting the first Prop 1A payments from employers for the 2025 tax year in January. The tax had been expected to raise more than $50 million annually. A reported “10,000 applicants” signed up for the lottery for the developer’s first acquired property on Western Ave.

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