February 26, 2025
Anna Chacon
Purchasing & Sustainability Division Manager
Financial & Management Services
City of Moreno Valley
14177 Frederick Street
Moreno Valley, CA 92553
Re: 2025/2026 Annual Rate Adjustment Request
Dear Ms. Chacon,
We would like to take this opportunity to thank you and your staff in advance for your assistance with the rate adjustment process.
Pursuant to Section 16 of the franchise agreement, WM respectfully requests an adjustment of trash and recycling/processing rates to be effective July 1, 2025.
Attached for your review, is the Solid Waste and Recycling Rates that reflects the 2025-2026 rate adjustment along with the supporting Rate Adjustment Percentage Calculation data.
Should you need additional information or have any question regarding this year’s annual rate adjustment, please contact me at (951) 415-4389. Thank you for your time.
Respectfully,
Douglas Tani
Public Sector Manager
WM
Size Service Frequency FY 2024/25
Proposed Rate Rate Adjustment FY 2025/26
Proposed Rate
FY 2024/25
Proposed Rate Rate Adjustment FY 2025/26
Proposed Rate
1.5 1 128.82$ 2.49$ 131.31$ Temp bin service (up to 7 days) 173.71$ 4.73$ 178.44$
1.5 2 231.42$ 4.27$ 235.69$ Temp bin service (30 days) 383.47$ 10.45$ 393.92$
1.5 3 327.60$ 5.89$ 333.49$ Extra empty ‐ first bin 69.88$ 1.90$ 71.78$
1.5 4 420.66$ 7.41$ 428.07$ Extra empty ‐ addl bins 29.97$ 0.82$ 30.79$
1.5 5 520.00$ 9.10$ 529.10$ Pull‐out service per bin
1.5 6 616.17$ 10.70$ 626.87$ 0‐15 feet N/C N/C 21 149.21$ 2.72$ 151.93$ 16‐35 feet 20.14$ 0.55$ 20.69$ 22 268.12$ 4.61$ 272.73$ 36‐50 feet 30.22$ 0.82$ 31.04$ 23 379.37$ 6.28$ 385.65$ Over 51 feet 40.31$ 1.10$ 41.41$ 24 487.15$ 7.86$ 495.01$ Locking container 50.38$ 1.37$ 51.75$ 25 602.19$ 9.65$ 611.84$ Restart fee 60.45$ 1.65$ 62.10$ 26 713.43$ 11.33$ 724.76$ Special bin/container lid 19.88$ 0.54$ 20.42$ 31 189.98$ 3.15$ 193.13$ Overage fees 69.93$ 1.91$ 71.84$ 32 341.17$ 5.24$ 346.41$ Bin exchange ‐ over 1 per year 59.78$ 1.63$ 61.41$ 33 482.87$ 7.08$ 489.95$ Bin exchange ‐ service level change 59.78$ 1.63$ 61.41$ 34 620.22$ 8.79$ 629.01$ Bulky item collection 22.41$ 0.61$ 23.02$ 35 766.30$ 10.74$ 777.04$ Set up fee 35.03$ 0.95$ 35.98$ 36 907.99$ 12.57$ 920.56$ Redelivery fee 70.06$ 1.91$ 71.97$ 41 241.78$ 3.89$ 245.67$ Commercial Recycle Contamination 82.12$ 2.24$ 84.36$ (2) 42 434.32$ 6.42$ 440.74$ Replacement Lock 32.29$ 0.88$ 33.17$ 43 614.66$ 8.63$ 623.29$ Replacement Key 6.46$ 0.18$ 6.64$ 44 789.54$ 10.70$ 800.24$ Haul or Call Fee 32.29$ 0.88$ 33.17$ 45 975.35$ 13.06$ 988.41$ Extra empty ‐ Compactor 103.31$ 2.82$ 106.13$ 46 1,155.74$ 15.26$ 1,171.00$ AB341 Non compliance fee 19.38$ 0.53$ 19.91$ 61 303.94$ 4.22$ 308.16$
62 548.39$ 6.83$ 555.22$
63 778.40$ 9.04$ 787.44$
6 4 1,001.79$ 11.08$ 1,012.87$
6 5 1,238.47$ 13.47$ 1,251.94$
FY 2024/25
Proposed Rate Rate Adjustment FY 2025/26
Proposed Rate
66 1,468.42$ 15.67$ 1,484.09$ Hauling fee 285.84$ 7.79$ 293.63$ (3) Compactor hauling fee 413.18$ 11.26$ 424.44$ (3)
Monthly minimum pull fee 285.84$ 7.79$ 293.63$
Size Service Frequency FY 2024/25
Proposed Rate Rate Adjustment FY 2025/26
Proposed Rate Monthly minimum pull fee (compactor) 413.18$ 11.26$ 424.44$
1.5 1 159.00$ 1.29$ 160.29$ Temporary flat fee (incl 4 tons) 513.26$ 13.99$ 527.60$ (4)
1.5 2 291.79$ 1.87$ 293.66$ Organics 703.77$ 19.18$ 722.95$ (3)
1.5 3 418.20$ 2.27$ 420.47$ C&D 554.14$ 15.10$ 569.24$ (3)
1.5 4 541.49$ 2.58$ 544.07$ Delivery 99.60$ 2.71$ 102.31$
1.5 5 671.05$ 3.08$ 674.13$ Extra trip 99.60$ 2.71$ 102.31$
1.5 6 797.37$ 3.47$ 800.84$ Relocation 99.60$ 2.71$ 102.31$ 21 189.47$ 1.11$ 190.58$ Set up fee 35.02$ 0.95$ 35.97$ 22 348.67$ 1.39$ 350.06$ Recycle Report Fee 32.27$ 0.88$ 33.15$ 23 500.18$ 1.46$ 501.64$
24 648.28$ 1.44$ 649.72$
25 803.52$ 1.62$ 805.14$
26 955.08$ 1.69$ 956.77$
3 1 250.37$ 0.73$ 251.10$ Size Service Frequency FY 2024/25 Proposed Rate Rate Adjustment FY 2025/26
Proposed Rate
32 461.97$ 0.42$ 462.39$ All Sizes 1 84.87$ 2.31$ 87.18$ (5) 33 664.07$ (0.16)$ 663.91$ All Sizes 2 169.71$ 4.63$ 174.34$ (5) 34 861.87$ (0.85)$ 861.02$ All Sizes 3 254.60$ 6.94$ 261.54$ (5) 35 1,068.37$ (1.32)$ 1,067.05$ All Sizes 4 339.45$ 9.25$ 348.70$ (5) 36 1,270.47$ (1.89)$ 1,268.58$ All Sizes 5 424.33$ 11.57$ 435.90$ (5) 41 322.38$ 0.67$ 323.05$ All Sizes 6 509.19$ 13.88$ 523.07$ (5) 42 595.44$ (0.00)$ 595.44$ Extra empty 38.73$ 1.06$ 39.79$ 43 856.31$ (1.01)$ 855.30$
44 1,111.73$ (2.15)$ 1,109.58$
45 1,378.09$ (3.01)$ 1,375.08$ FY 2024/25
Proposed Rate Rate Adjustment
FY 2025/26
Proposed Rate
4 6 1,639.04$ (4.01)$ 1,635.03$ Recycling Material Offset $ ‐
$ ‐
$ ‐
$ 32.99 0.60$ 33.59$
$ 29.69 0.54$ 30.23$
Size Service Frequency FY 2024/25
Proposed Rate Rate Adjustment FY 2025/26
Proposed Rate $ 5.66 0.12$ 5.78$
2 1 283.97$ 7.74$ 291.71$ $ 7.18 0.14$ 7.32$
2 2 567.22$ 15.46$ 582.68$ N/C N/C (6)
2 3 850.46$ 23.18$ 873.64$ $ 9.43 0.17$ 9.60$ 2 4 1,133.65$ 30.90$ 1,164.55$ $ 10.60 0.06$ 10.66$ 2 5 1,416.87$ 38.62$ 1,455.49$ $ 3.93 0.11$ 4.04$ 2 6 1,700.07$ 46.34$ 1,746.41$ $ 3.44 0.09$ 3.53$ 64 Gallon Cart 1 52.90$ 1.44$ 54.34$ $ 13.90 0.38$ 14.28$ 64 Gallon Cart 2 105.80$ 2.88$ 108.68$ $ 22.42 0.61$ 23.03$ (7)(8) 64 Gallon Cart 3 158.71$ 4.33$ 163.04$ $ 22.42 0.61$ 23.03$ 64 Gallon Cart 4 211.61$ 5.77$ 217.38$ $ 173.74 4.74$ 178.48$ 64 Gallon Cart 5 264.51$ 7.21$ 271.72$ $ 383.47 10.45$ 393.92$ 64 Gallon Cart 6 317.42$ 8.65$ 326.07$ $ 16.82 0.46$ $ 17.28 $ 16.43 $ 0.45 $ 16.88
Footnotes
(1) Includes one 96‐gallon recycle cart serviced one time per week and one 64 gallon organics cart serviced 1 timer per week per customer (2) Per P/U
(3) + landfill
(4) + landfill >4
(5) Contact WM for recycle compactor rate
(6) Max one
(7) minimum
(8) In excess of one item per week
Set up fee
Addl bulky item pick‐up
Curbside E‐waste (over 3 free)
Temporary bin service
Temporary bin service
Addl 35 gal solid waste container
Addl 64 gal solid waste container
Addl 64 gal organics container
Addl 96 gal solid waste container
Addl 96 gal organics container
Addl 96 gal recycle container
Contamination
Commercial Organics Senior citizen discount rate
Roll off
Attachment 1
City of Moreno Valley
Solid Waste and Recycling Rates
Effective July 1, 2025
Commercial & Multi‐Family Service (1) Commercial Misc Services Container changes over 1 per year
Commercial Compactor Service
Recycling Bins
Single family rate
Residential Service
Per bag charge
EXHIBIT C
MEMORANDUM
To: Anna Chacon, Purchasing & Sustainability Division Manager From: Philip Mainolfi, Senior Project Manager
cc: Caitlin Barboza, Senior Associate
Date: April 3, 2025
Re: Solid Waste Rate Adjustment Review – FY 2025/2026
Dear Anna Chacon,
HF&H Consultants, LLC (HF&H) is pleased to present its findings in the review of Waste Management of the Inland Empire’s (WM) fiscal year 2025/2026 rate adjustment request for the City of Moreno Valley (City).
Background
WM submitted its initial rate adjustment request to the City in February 2025 ; the City subsequently requested that HF&H review WM’s rate adjustment request, subject to approval by the City. HF&H immediately requested additional backup data for the commercial and multi-family adjustments, residential cart counts, and blended organics processing rate supporting the rate adjustment request. HF&H reviewed the initial application and supporting documentation and requested updates from WM on March 11, 2025. WM resubmitted the rate application on March 17, 2025. HF&H performed the following steps in completing the review of the rate adjustment application:
• Reviewed contractual requirements for WM’s rate adjustment (see Attachment A) • Reviewed the initial proposed rate adjustment calculation submittal and one resubmittal from WM
• Communicated with the City and WM regarding any additional information required • Requested that WM make adjustments in the proposed rate application, as necessary Findings
CONSUMER PRICE INDEX
• The change in the 12-month average Consumer Price Index (CPI), used for calculation of the rates (Series ID: CUURS49CSA0; Series Title: All items in Riverside -San Bernardino-Ontario, CA, all urban consumers, not seasonally adjusted) , corresponds to a 2.73% increase in the service component of the rates as well as ancillary services, such as extra charges, delivery fees, and distance charges.
MEMORANDUM
City of Moreno Valley
April 3, 2025
DISPOSAL AND PROCESSING COSTS
Solid Waste Disposal
• HF&H confirmed with Riverside County ( County) that the disposal rate for County landfills will increase from $49.75 to $51.18 beginning July 1, 2025. The change in gate rate coupled with a change in disposal tonnage per household results in a 1.29% increase in the residential solid waste disposal component. • Commercial tonnage increased by approximately 2.69%, while the number of commercial accounts increased by 12.84 %. When factoring in the gate rate increase and reduction in pounds per customer, the commercial disposal component decreased by 6.43%.
Organic Materials Processing
• WM used a blended rate for organics processing based on the tonnage transported to two facilities and the per ton gate rates at those facilities. There is not language in the Agreement that specifies how the organics rate should be calculated. WM provided, and HF&H confirmed, that the blended rate was calculated as shown in the table below.
Facility Tons from Dec
2023 - Dec 2024
Cost per Ton % of Total
Tons
Weighted Cost
per Ton
Ecology Compost Facility 23,921.75 $94.04 97.8% $91.97
Pala Compost Facility 538.12 $100.57 2.2% $2.21
Total 24,459.87 N/A 100% $94.18
RATE CALCULATIONS
The final rates for commercial and multi-family services, residential, and compactor fees include a service component as well as a disposal and/or processing component.
Residential Service
• For the standard service residential rate, there is a service component as well as separate components for solid waste disposal and organic materials processing. HF&H recalculated the rate based on the current County landfill rate and confirmed the rates submitted from WM were calculated consistently with the franchise agreement amendment.
• WM applied the CPI increase of 2.73% to the residential service component.
Additionally, WM applied the County landfill rates and blended organics processing rates to the disposal and processing components. WM calculated, and HF&H confirmed, an overall 1.82% increase in the standard service residential rate.
Commercial and Multi-Family Service
• For commercial and multi-family accounts, the service component will increase by the CPI index of 2.73%. The disposal component of the commercial and multi- family rate
MEMORANDUM
City of Moreno Valley
April 3, 2025
adjustment decreased by 6.43% as described in the Solid Waste Disposal s ection on page 2 of this memorandum.
• The base roll -off service includes the haul rate plus four tons of disposal per haul.
HF&H confirmed that the calculations WM used to calculate the change in the haul rate and the disposal rate for County landfills were accurate.
Recommendations
HF&H suggests that the City implement improvements to the rate adjustment application going forward. The Commercial Rate Calculation excel file should be imported as a tab in the rate application document to provide transparency on how the rates are calculated and avoid potential future technical issues with cells linking to external documents. Additionally, the City would benefit from requiring WM to submit all backup documentation upfront ( including calculations for blended organic materials processing rates and raw residential customer and cart count data) to expedite review of the rate application.
Limitations
Our review was different in scope than an examination in accordance with Generally Accepted Auditing Standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
HF&H did not independently verify WM’s tons disposed or processed at the reported facilities; however, to ensure consistency, HF&H compared the tonnage included in WM’s rate adjustment calculations to the tonnage reports WM submitted to the City. * * * *
HF&H appreciates the opportunity to be of service to the City and thanks WM staff for their cooperation throughout our review. Should you have any questions or concerns, please do not hesitate to reach out to me directly at (949) 504-5150 or [email protected] .
Sincerely,
Philip Mainolfi
Senior Project Manager
Attachments
Attachment A – Rate Methodology
Attachment B – Rate Adjustment Application