The city council voted 7-4 to increase the Recycle Plus rate by 5 percent for single-family service and by 2 percent for multi-family service, as well as for the option of fining people who habitually put trash in their recycling bins.

San Jose City Council members Ken Yeager, Nora Campos, Linda LeZotte and Dave Cortese voted against the motion. Mayor Ron Gonzales, Vice Mayor Cindy Chavez and Council members Nancy Pyle, Madison Nguyen, Judy Chirco, Forrest Williams and Chuck Reed voted for the rate increase.

The increase will go into effect on April 1.

Director of environmental services John Stufflebean presented a report recommending the rate increase. As reasons for the increase, he cited a rise in expenditures as well as the possibility of a more costly contract when the NorCal contract ends.

NorCal has said it would not renew the city's contract at the same rate, leaving city staffers to surmise that a new contract with a different company would also be more expensive. Staff suggested increasing rates now to prevent a more dramatic spike in rates later.

Expenditure increases include a 6.4 percent increase in hauler contract costs due to cost of living adjustments, labor and fuel. There is also a 17.7 percent increase in landfill disposal costs, mainly due to additional environmental regulations with new construction at Newby Island landfill and the expansion of the Green Business program. Both of these expenditures are expected to increase again in fiscal year 2006-07.

The council members who voted against the rate increase did so for different reasons.

"I do not agree with any rate increase that will give more money to NorCal," LeZotte said.

She would, however, support a rate increase with a new company once NorCal's contract expires.

Cortese did not support the rate increase, saying he opposed imposing fines for having trash in recycle bins. He did not think it was right to fine citizens who were voluntarily recycling, saying the fines could discourage residents from recycling altogether.

The council directed staff to study possible options for eliminating the amount of trash in recycling bins. Options ranged from fines for having trash in recycling bins, to positive incentives for having a trash-free recycling bin.

The rate increase will bump up the single-family monthly rate from $18.30 to $19.20. The new rate is still below the countywide average of $20.74. The rate is also lower than fees charged to Oakland, San Francisco and Sacramento residents, who have monthly rates of $22.82, $19.33 and $20.70, respectively.