CITY OF MENIFEE
SUBJECT: Annual Solid Waste Rate Adjustment
MEETING DATE: May 20, 2026
TO: Mayor and City Council
PREPARED BY: Kori Jones, Senior Management Analyst
REVIEWED BY: Mariana Mitchell, Community Services Director APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Approve the USA Waste of California, Inc., dba Waste Management of the Inland Empire (Waste Management) proposed solid waste rate adjustments for Fiscal Year (FY) 2026/2027.
DISCUSSION
The City of Menifee has an exclusive franchise agreement with Waste Management for the collection and handling of solid waste, dry recycling, and organics within the City (collectively, solid waste). The City requires that all premises within the City that accumulate or produce solid waste receive weekly solid waste services through the franchise waste hauler, unless they self- haul waste in a manner that complies with all applicable laws. Regular solid waste service is important to preserve the health, welfare, and sustainability of our community.
The City Council reviews and approves, as applicable, an annual rate adjustment proposal submitted by Waste Management for application to solid waste bills to be in effect as of July 1 st of the respective fiscal year. The Waste Management Franchise Agreement (Agreement) states that at the approval of the City, which approval shall not be unreasonably withheld, the Contractor Service Rates shall be adjusted annually to reflect changes in the Consumer Price Index (CPI).
The FY 2026/2027 proposal reflects a rate adjustment of 4.25% and one-time increase to address labor costs.
Proposed Rate Adjustment and Calculation
Section 24 of the Agreement details the two components of the solid waste rates. The service component comprises 80% of the solid waste rate, while the disposal component comprises the remaining 20% of the solid waste rate. The factors impacting the cost of each of these components are detailed on the following page.
City of Menifee Staff Report
Annual Solid Waste Rate Adjustment
May 20, 2026
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The proposed solid waste rate adjustment for FY 2026/2027 represents an increase of 4.25% above the current rate, based upon the application of factors in Table 1 below. The FY 2026/2027 Waste Management Adjusted Rate Sheet and CPI adjustment detailed calculation have been attached to this staff report.
TABLE 1: RESIDENTIAL/COMMERCIAL RATE COMPONENT FACTORS
Rate Component Weight Percentage Weighted Percentage
Service Component – CPI* 80% 4.00% 3.20%
Disposal Component – Landfill** 20% 5.27% 1.05%
Adjusted Weighted Percentage 4.25%
*Service Component Factors: Consumer Price Index for Garbage and Trash (CPI-U), not-to-exceed 4%. **Disposal Component Factors: County of Riverside landfill rate or CPI, whichever is greater.
Additional Rate Adjustment to Address Increased Labor Costs Waste Management is requesting an additional one-time adjustment to the solid waste rates in accordance with Section 19(B) of the Franchise Agreement regarding modification of rates for extraordinary costs. This request reflects a regional effort by the hauler to address increases in operating costs following recent labor negotiations impacting all service areas and multiple jurisdictions across Riverside County.
The additional adjustment proposed on Menifee rates reflects the following:
•$0.51 cents one-time increase on standard weekly residential service •$0.38 cents per yard over two years on commercial trash service rates for total one-time increase of $0.76 cents per yard weekly
•No additional increase to senior rates
Commercial rates apply to business accounts as well as most multi-family/apartment complexes.
The additional adjustment to commercial rates applies only to the trash component of the service rates. Commercial rates applied for the weekly collection of recycling, organic, or construction services have not been impacted. A “labor request” column has been added to the FY 2026/27 solid waste rate sheet which highlights the additional one-time rate adjustment.
In addition to phasing the commercial rate increases over a two-year period, Waste Management has also opted to forgo any increase to senior rates or senior multi-family communities with commercial services. These efforts help to minimize cost impacts to Menifee businesses and senior residents which may be highly vulnerable to increases in monthly expenses. As an illustration, Table 2 on the following page shows rate impacts on common collection services over the next two fiscal years with the CPI and labor adjustments.
City of Menifee Staff Report
Annual Solid Waste Rate Adjustment
May 20, 2026
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TABLE 2: ILLUSTRATION OF LABOR REQUEST INCREASE TO COMMON RATES OVER FISCAL YEARS 2026/2027 AND 2027/2028
Service Description and
Monthly Rate
FISCAL YEAR 2026/27 (YEAR 1)*
FY 2025/26
Current
Rate
FY 2026/27
Annual CPI-U
Increase
FY 2026/27
Labor
Request
FY 2026/27
Proposed
Rate
Residential 3-cart service
95-gal, 1x weekly
$37.00 $1.57 $0.51 $39.09
Commercial/Multi-family
3-yard Trash, 2x weekly
$360.20 $15.31 $9.87
($0.38 cents per
yard weekly)
$385.38
Commercial/Multi-family
Compliance Rate – 3 bins
4-yard Trash, 1x weekly
$297.02 $12.62 $6.58
($0.38 cents per
yard weekly)
$316.23
*FY 2027/28 Year 2 increase will be based on CPI-U as well as the final year increase of $0.38 cents per yard weekly to applicable commercial rates
WRCOG Annual Regional Solid Waste Rate Survey
As part of its membership to the Western Riverside Council of Governments (WRCOG) Solid Waste Committee, the City participates in an annual solid waste rate survey which compares regional rates of neighboring cities as well as Riverside County. As noted in the WRCOG report, factors such as inflation and additional services to comply with state mandates have contributed to rising rates. A snapshot of this study has been provided in Graphs 1 and 2 below. Similar to previous years, Menifee solid waste rates trend around the average rate of participating jurisdictions. The complete WRCOG report has been attached to this staff report.
GRAPH 1: SINGLE-FAMILY – 96 GALLON REFUSE CART
City of Menifee Staff Report
Annual Solid Waste Rate Adjustment
May 20, 2026
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GRAPH 2: COMMERCIAL REFUSE – 3 CUBIC-YARD BIN ONCE A WEEK While comparison of rates can be utilized as a general tool, it is important to note that jurisdiction rates are varied based on ancillary services provided to customers in the area, structure of its franchise agreement with the servicing hauler, whether services are contracted or in-house, and/or number of households/accounts served by the hauler. Jurisdictions are also in varying stages of implementation and compliance with state-mandated recycling programs such as Senate Bill 1383 California’s Short-lived Climate Pollutant Reduction Strategy.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
In accordance with the current Agreement with Waste Management, the City receives a 12% franchise fee on net revenue collected by Waste Management in the City’s General Fund (1100- 436300). Adjustments to solid waste rates have a proportionate effect on revenues received by the City. The FY 2026/2027 adopted revenue budget is set at $3,250,000 and no additional budget appropriation action is required.
ATTACHMENTS
1. FY 2026-27 Menifee Solid Waste Adjusted Rate Sheet
2. Waste Management CPI-Index Change and Rate Calculation
3. 25-26 WRCOG Solid Waste Rate Report