Report to City Council
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TO: Mayor and City Council
FROM: Launa Jimenez, Chief Financial Officer
AGENDA DATE: June 4, 2024
TITLE: USA WASTE OF CALIFORNIA, INC. FISCAL YEAR
2024/25 ADJUSTMENT
TITLE SUMMARY: USA Waste of California, Inc. Fiscal Year 2024/25 Adjustment
Recommendation(s)
That the City Council:
1. Approve Resolution No. 2024-XX Adopting the Adjustment for the Solid Waste and Recycling Services as required by the Solid Waste and Recycling Franchise Agreement for Fiscal Year 2024/25.
SUMMARY
This staff report recommends the adoption of the a djustment for the Solid Waste and Recycling Services as required by the Solid Waste and Recycling Franchise Agreement for FY 2024/25.
DISCUSSION
On April 19, 2022, the Council approved the Third Amendment and Restatement of the Solid Waste and Recycling Franchise Agreement to c omply with the State’s Senate Bill 1383 Mandatory Organic Waste Disposal Reduction Legislation.
The City of Moreno Valley has an exclusive Franchise Agreement with USA Waste of California, Inc. for collecting and handling solid waste, green waste, and recycling within the City (collectively, “solid waste”). Each year, the City Council reviews and considers
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for approval, as applicable, our waste haulers requested rates prior to those rates being assessed on the subsequent Fiscal Year’s (i.e., FY 2024/25) solid waste bills.
Per Section 16 E of the First Amendment to the Third Amendment of the Franchise Agreement, the annual adjustment shall be effective July 1st of each year. The change of the CPI from December of the preceding year to December of the year shall be considered in the review. The CPI adjustment shall be equal to the amount derived by multiplying the previous rate by (b) the percentage increase or decrease in ·the Consumer Price for all urban consumers within the Riverside–San Bernardino–Ontario area with Series ID CUURS49CSA0 (the CPI Index).
HF&H, the City’s review consultant, has confirmed the adjustments are reasonable as described in the above referenced section of the agreement.
ALTERNATIVES
1. Approve and authorize the recommended actions as presented in this staff report.
Staff recommends this alternative as it is consistent with the terms of the Franchise Agreement.
2. Do not approve and authorize the recommended actions as presented in this staff report. Staff does not recommend t his alternative as it is not consistent with the terms of the Franchise Agreement.
FISCAL IMPACT
There are minimal impacts with this action.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Anna Chacon Launa Jimenez
Purchasing & Sustainability Division Manager Chief Financial Officer/City Treasurer
Department Head Approval:
Kimberly Ganimian
Deputy Finance Director
CITY COUNCIL GOALS
Revenue Diversification and Preservation: Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
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2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
See the Discussion section above for details of how this action supports the City Council’s Strategic Priorities.
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Report Approval Details
Document Title: STAFFREPORT_WM_RATE_INCREASE-FY2024-
25_06.04.2024.docx
Attachments: - Resolution 2024-XXXX.doc
- Waste Management FY 24-25 Rate Adjustment Final.pdf
Final Approval
Date:
May 28, 2024
This report and all of its attachments were approved and signed as outlined below:
No Signature found
Anna Chacon
Natalia Lopez
Launa Jimenez
Brian Mohan
Mike Lee
No Signature - Task assigned to Jane Halstead was completed by assistant Patty Rodriguez
Jane Halstead