Joint Special Council/BFPD
06/3/25 06:00 PM
Environmental Services
Taylor Britt
Resolution
Doc ID: 6003
COUNCIL RESOLUTION
AGENDA MATTER:
RESOLUTION APPROVING A REQUEST BY BURRTEC WASTE INDUSTRIES FOR A CONSUMER
PRICE INDEX (CPI) INCREASE
EXECUTIVE SUMMARY:
This is a public hearing for the City Council to consider the adoption of a resolution approving an increase in solid waste collection service charges. The council will consider a $1.02 per month increase in residential curbside service. The proposed increase includes a CPI adjustment of 2.61% across all rate categories.
DISCUSSION:
The City Council has previously determined that the collection and disposal of trash, recycling, and organics in its service area shall be performed by Burrtec Waste Industries, Inc. under the terms of an exclusive franchise agreement. The agreement states that Burrtec may submit a request for rate review once a year, to include a gross adjustment of 100% of the percentage increase in the Consumer Price Index (CPI) for all urban consumers in the Riverside-San Bernardino-Ontario area, for the previous 12- month period for which information is received from the U.S. Department of Labor, but not to exceed 5% per year.
The overall percentage change in CPI for the January to December period immediately preceding July 1, 2025, the effective date of the proposed rate adjustment, is 2.61%.
Pursuant to Article XIIID of the California Constitution, the City of Barstow sent written notification to all affected property owners of the intent to consider annual CPI increases. The 5-year notice covers future requests through July 1, 2028. The notice included a description of the annual adjustment and instructions on how to participate in the hearing. Additionally, a Notice of Public Hearing was published by the City Clerk's Office in accordance with the government code.
Below is an explanation of the basis upon which the charges are calculated and the reason for the proposed increase.
The monthly residential curbside collection charge is comprised of the following components:
1. An amount for the administration and operation of automated curbside trash collection service, which includes collection barrels (a 95-gallon trash barrel, 95-gallon recycling barrel, and 35- gallon organics barrel) with weekly pick-up service;
2. The cost of recyclable processing;
3. The cost of organics processing;
4. An amount to compensate the City of Barstow for its administrative costs in connection with billing, customer service, and noticing requirements;
5. An amount to compensate the City of Barstow for the franchise service provision; Joint Special Council/BFPD
06/3/25 06:00 PM
Environmental Services
Taylor Britt
Resolution
Doc ID: 6003
COUNCIL RESOLUTION
6. The cost of disposal at the landfill; and
7. An amount to assist in providing programs for compliance with local, state, and/or federal regulations such as AB 939 and SB 1383.
The total proposed residential rate increase of $1.02 per month is based on the following factors:
A $0.45 per month increase for collection service based on the CPI; A $0.13 per month increase for the processing of recyclables; A $0.19 per month increase for the processing of organics; A $0.04 per month increase in the administrative fee to reflect the CPI increase; and A $0.07 per month increase in the franchise fee to reflect the CPI increase.
The commercial charges are comprised of the following components:
1. An amount for the administration and operation of commercial bin trash, recycling, and organics collection service;
2. The landfill disposal fee;
3. The cost of recyclable processing;
4. The cost of organics processing;
5. An amount to compensate the City of Barstow for its administrative costs in connection with billing, customer service, and noticing requirements;
6. An amount to compensate the City of Barstow for the franchise service provision; and
7. An amount to assist in providing programs for compliance with local, state, and/ or federal regulations such as AB 939, AB 341, AB 1826 & SB 1383.
The proposed commercial rate increase is based upon the level of service as shown in Exhibit A.
Should the proposed rate increase be approved, the new rates would become effective July 1, 2025.
FISCAL IMPACT:
The proposed rate increase will result in an increase in franchise and administrative fee revenue for FY 25-26, as the City receives a franchise fee of 10% of all gross receipts excluding sewer fees, AB939/State Program Compliance Fees, and tipping fees, and an administrative fee of 5% of all gross receipts excluding the same.
RECOMMENDED ACTION:
Joint Special Council/BFPD
06/3/25 06:00 PM
Environmental Services
Taylor Britt
Resolution
Doc ID: 6003
COUNCIL RESOLUTION
Conduct the Public Hearing and subject to testimony received, adopt Resolution No. _____ - 2025, approving a request by Burrtec Waste Industries for a Consumer Price Index (CPI) increase of 2.61% to existing rates for waste collection and recycling services and waive the full reading.