NOTICE OF PUBLIC HEARING
CONCERNING PROPOSED RATE INCREASES
TO SOLID WASTE SERVICE CHARGES
NOTICE IS HEREBY GIVEN that the City Council of the City of Laguna Beach (the “City”) will conduct a Public Hearing on June 23, 2026, at 5:00 p.m., in City Council Chambers, 505 Forest Avenue, Laguna Beach, CA 92651, or as soon thereafter as the matter may be heard, to consider adopting increases and adjustments in the current rates for Solid Waste Service. Members of the public may view the hearing live by either attending in-person or via such other means as the City may designate. Any member of the public wishing to provide public comment may do so by attending the meeting in-person or as otherwise directed in the City Council agenda. The City will provide public access information pertaining to the Public Hearing via the City Council agenda, which will be posted to the City’s website when such information becomes available.
REASONS FOR THE PROPOSED INCREASES
The City has an exclusive franchise agreement with CR&R Environmental Services (“CR&R”) for the collection and handling of refuse, recyclable materials, and organic waste (green waste and food scrap waste) within the City (collectively, “Solid Waste Service”). All properties within the City are required to subscribe to the Solid Waste Service provided by CR&R. Pursuant to the franchise agreement, Solid Waste Service Fees are imposed on customers within the City who receive Solid Waste Service from CR&R. CR&R bills customers directly for Solid Waste Service. The revenues from the charges are used to pay CR&R for the Solid Waste Service provided.
The franchise agreement establishes a process for revising the amount that CR&R will charge for the Solid Waste Service it provides within the City. CR&R is proposing to increase the rates it charges for Solid Waste Service. The franchise agreement provides that rates may be adjusted annually based on changes in the Producer Price Index for Natural Gas (WPU0531), the Producer Price Index for Finished Goods Less Food & Energy (WPUFD4131), and the actual change in the County of Orange landfill tipping fee.
The proposed rates for FY 2025–2026 incorporate, in addition to the standard annual PPI-based adjustments, a one-time adjustment to the collection component to address a structural difference in multi-family service pricing. This adjustment has been reviewed and verified by the City’s rate consultant, EcoNomics, Inc. To recover the increased costs of providing Solid Waste Service as described above, the City has determined that it is necessary to increase the rates for the Solid Waste Service it imposes on its customers.
PROPOSED SOLID WASTE SERVICE CHARGES
The rate structure for Solid Waste Service has two customer classes — residential and commercial (which includes multi-family and industrial customers). CR&R bills single-family residential customers monthly for cart service and bills multi-family and commercial customers monthly for bin service. Singlefamily residential customers and some multi-family residential customers receive a set of carts for refuse, recycling, and organic waste. For residential customers subscribing to cart service, the rates for Solid Waste Service are calculated based on a complete set of Solid Waste Containers (i.e., refuse, recyclable materials, and organic waste), with additional charges for additional carts requested. For multi-family residential and commercial customers, the rates for Solid Waste Service are calculated on: the basis of the size (in cubic yards) of the Solid Waste containers; the type of material collected in the container (refuse, recyclable materials, or organic waste); and the number of pick-ups per week.
Attachment 1
7 If adopted, the proposed maximum Solid Waste Service rates in the attached Exhibit “A” will take effect beginning July 1, 2026, subject to the Annual Adjustments described below.
Annual Adjustments
• PPI — Collection and Processing Component: Beginning July 1, 2027, and each July 1 thereafter for the remaining term of the Agreement, the collection and processing components of the Solid Waste Service Charges shall be adjusted by the annual percentage change (January–December) in the Producer Price Index for Finished Goods Less Food & Energy (WPUFD4131), not to exceed 5% per annum; if the index is negative, the adjustment shall be set to zero. • PPI — Fuel Sub-Component: The fuel sub-component of the collection component shall be adjusted by the annual percentage change in the Producer Price Index for Natural Gas (WPU0531), subject to a cap of ±25% per annum.
• Disposal (Tip Fee) Adjustment: The disposal component shall be adjusted annually to reflect the actual change in the Orange County landfill tipping fee charged by the County of Orange. • No Further Public Hearing Required: If the rate adjustments described above are approved, a written notice of each annual adjustment will be mailed to all parties subject to the adjustment not less than 30 days prior to the effective date. In no event may an automatic increase cause the rates to exceed the City’s actual cost of providing Solid Waste Service.
PUBLIC HEARING AND PROTESTS
Any property owner or any tenant (i.e., a customer of record) directly responsible for the payment of Solid Waste Service Charges may submit a written protest to the proposed rate increases to the City’s Solid Waste Service Charges; provided, however, only one written protest will be counted per identified parcel.
Any written protest must: (1) state that the identified property owner or tenant is in opposition to the proposed rate increases to the Solid Waste Service Charges; (2) provide the location of the identified parcel (by street address or assessor’s parcel number); and (3) include the name and signature of the property owner or tenant submitting the protest. Written protests may be submitted by mail or in person to the City Clerk at 505 Forest Avenue, Laguna Beach, CA 92651, or at the Public Hearing (date and time noted above), provided they are received prior to the close of the public comment portion of the Public Hearing, which will occur when the public testimony on the proposed increases and adjustments is concluded. Any protest submitted via e-mail or other electronic means will not be accepted. Please identify on the front of the envelope for any written protest, whether mailed or submitted in person to the City Clerk, “Attn: Public Hearing on Solid Waste Rate Increases.” IF YOU DO NOT OBJECT TO THE ADJUSTMENTS, NO ACTION IS REQUIRED.
The City Council will hear and consider all written protests and oral comments on the proposed rate increases at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests; only a written protest will count for the purposes of determining whether a majority protest exists. Upon the conclusion of the Public Hearing, if written protests against the proposed rate increases to the Solid Waste Service Charges as outlined above are not presented by a majority of property owners of the identified parcels, the City Council will be authorized to adopt the rate increases.
This protest hearing is being conducted in accordance with Article XIIID of the California Constitution (also referred to as Proposition 218). Please note that a rate protest proceeding is not an election. To ensure transparency and accountability in the rate protest tabulation, protests shall constitute a disclosable public record from and after the time they are received. The City is conducting this Proposition 218 majority protest proceeding out of an abundance of caution and without conceding the applicability of Proposition 218 to Solid Waste Service.
For further details or questions regarding the basis and reasons for the proposed rate increases to the City’s Solid Waste Service Charges, please contact the City at (949) 497-0711 or by email at [email protected]. For any questions you may have regarding your customer classification, please contact CR&R at (949) 662-3819.
8 PROPOSED RESIDENTIAL MONTHLY RATES Service Level Current Monthly Rate
Proposed Monthly Rate
Effective July 1, 2026
Monthly
Change
35-Gallon 3-Cart Set $26.70 $31.47 +$4.77 65-Gallon 3-Cart Set $27.00 $31.86 +$4.86 95-Gallon 3-Cart Set $27.21 $32.12 +$4.91 City of Laguna Beach
Public Works & Utilities Department
NOTICE OF PUBLIC HEARING
CONCERNING PROPOSED INCREASES TO SOLID WASTE
SERVICE CHARGES
Because the City anticipates future increases in the cost of providing Solid Waste Service that CR&R will charge pursuant to the Agreement, the City is also proposing to annually adjust the maximum rates for: (1) the collection component based on the annual percentage change (January-December) in the Producer Price Index (PPI), (2) the fuel sub-component based on the annual percentage change (January-December) in the PPI, (3) changes in landfill disposal costs associated with WISE, and (4) changes in the City's regulatory compliance costs (collectively, the Annual Automatic Adjustments). If approved, beginning July 1, 2026, and each July 1 thereafter for a five-year period, through and including adjustments effective on or after July 1, 2030, the rates for Solid Waste Services may be adjusted annually, without a further public hearing. In no event may an automatic increase exceed the City's cost of providing Solid Waste Services. If the adjustments are approved, a written notice will be mailed to all parties subject to future annual rate adjustments not less than 30 days prior to the effective date of the adjustment.
505 Forest Avenue
Laguna Beach, CA 92651
NOTICE IS HEREBY GIVEN that the City Council of the City of Laguna Beach (the “City”) will conduct a Public FUTURE RATE INCREASES Hearing on June 23, 2026, at 5:00 p.m., in the City Council Chambers, 505 Forest Avenue, Laguna Beach, California, or as soon thereafter as the matter may be heard, to consider adopting increases to the current rates for Solid Waste Service. If approved, the proposed maximum rates will take effect July 1, 2026.
The proposed rate increases reflect increased landfill disposal costs associated with the Waste Infrastructure System Enhancement (WISE) agreement, annual contractual inflationary adjustments tied to the Producer Price Index, and a one-time adjustment to the collection component to address the decrease in revenue associated with re-pricing 2-8 unit properties as residential and billing on the number of carts (4.4% for residential and 5.2% for commercial). Below are the most common service levels in the City. For one-time on call services or other unique service requests, please scan the QR Code or visit the city’s website at www.lagunabeachcity.net/recycling for detailed rates.
PUBLIC HEARING AND PROTESTS Any property owner or tenant of a parcel subject to the proposed rate increase may submit a written protest. Written protests must include an original signature and identify the affected parcel, such as by service address or Assessor’s Parcel Number. Written protests must be received by the City Clerk before the close of the public hearing and may be submitted by mail or delivered in person to 505 Forest Avenue, Laguna Beach, CA 92651. Only one written protest per identified parcel will be counted. Protests submitted by e-mail or other electronic means will not be accepted. Further information can be found via the QR Code or visit
www.lagunabeachcity.net/recycling.
SCAN FOR DETAILED RATES, PROTEST
INSTRUCTIONS, AND SERVICE INFORMATION OR
VISIT WWW.LAGUNABEACHCITY.NET/RECYCLING
Note: Individual carts are subject to proposed fee increases. PROPOSED COMMERCIAL & MULTIFAMILY NINE (9) UNITS OR MORE MONTHLY RATES Service Level Current Monthly Rate
Proposed Monthly Rate
Effective July 1, 2026
Monthly
Change
2-Cubic Yard Trash Bin $217.61 $253.70 +$36.09 3-Cubic Yard Trash Bin $229.42 $271.22 +$41.80 2-Cubic Yard Recycle Bin $108.75 $123.05 +$14.30 3-Cubic Yard Recycle Bin $114.62 $129.90 +$15.28 2-Cubic Yard Organics (Food Scraps/ Yard Trimmings) Bin $110.20 $126.78 +$16.58 35-Gallon Organics (Food Scraps/ Yard Trimmings) Cart $44.31 $50.16 +$5.85 65-Gallon Organics (Food Scraps/ Yard Trimmings) Cart $46.76 $53.12 +$6.36 Questions: Call the Public Works & Utilities Department Note: Rates for commercial and multifamily services for a single container serviced once a week. (949) 497-0711 or email [email protected]
9 First-Class Mail
US Postage Paid
Laguna Beach CA
Permit 559
City of Laguna Beach Public Works & Utilities Department 505 Forest Avenue
Laguna Beach, CA 92651
NOTICE OF PUBLIC HEARING regarding proposed
increases and adjustments to Solid Waste Service
Charges.
Scan for detailed rates, protest instructions, and service information:
APN
PROPERTY OWNER
ADDRESS
CITY, ZIP
Public hearing: June 23, 2026 at 5:00 p.m. | If approved, rates take effect July 1, 2026.
10