REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Remon Habib, City Engineer
Date:June 10, 2025
Subject:2025 Annual Consumer Price Index Increase for Refuse Collection Services Provided by CR&R
Recommendation
Receive and file the 2025 Annual Consumer Price Index Increase for Refuse Collection Services provided by CR&R since the rate increase falls within the allowable amount per the Franchise Agreement.
Background
CR&R, Incorporated holds an exclusive franchise in the City of Lake Elsinore to collect and dispose of refuse and to collect and process recyclables in the city. The franchise contract specifies that rates be adjusted annually to reflect changes in the Consumer Price Index (CPI) and any increases in the Riverside County Landfill Fees. The current monthly residential rate is $32.18, which includes the Landfill Fee of $3.78.
Discussion
The CR&R requested increase in service rates is based on the data supplied by the Bureau of Labor Statistics for the 12 months ending March 31, 2025, in which the Consumer Price Index (CPI) for the Los Angeles, Riverside and Orange County area increased by 2.25%.
In addition, City staff was notified that the County of Riverside Waste Management Department will be adjusting their landfill disposal rate for Fiscal Year 2025-2026 by 2.88%.
Due to the increased CPI adjustment factor, a monthly rate adjustment will become effective for residential and commercial accounts. The monthly residential rate will go from $32.18 per month to $32.86 per month. The commercial rates for fiscal year 2025-2026 reflect the bundled services and the 1.87% increase adjustment; for the implementation of CalRecycle SB 1383 Mandatory Annual Consumer Price Index Increase for Refuse Collection
Commercial Compliance Rates. The new rates are reflected in Exhibit “C” and will become effective July 01, 2025.
Fiscal Impact
No negative fiscal impact to the City. This rate adjustment will result in a slight increase in franchise revenues for the City.
Attachments
Attachment 1- 2025 Price Adjustment
Exhibit A- 2025 Schedule of Rates
Engineering