Report to City Council
ID: 26-0202 Page 1
TO:TO: Mayor and City Council
FROM: Felicia London, Chief Financial Officer/City Treasurer
AGENDA DATE: May 19, 2026
TITLE: USA WASTE OF CALIFORNIA, INC. FISCAL YEAR
2026/27 RATE ADJUSTMENT (REPORT OF:
FINANCIAL AND MANAGEMENT SERVICES)
(DISTRICT: ALL DISTRICTS)
TITLE SUMMARY: USA Waste Of California, Inc. Fiscal Year 2026/27 Rate Adjustment
DISTRICT: All Districts
Recommendation(s)
1. Approve Resolution No 2026-XX Adopting the Rate Adjustment for the Solid Waste and Recycling Services as required by the Solid Waste and Recycling Franchise Agreement for Fiscal Year 2026/27.
SUMMARY
This staff report recommends the adoption of the adjustment for the Solid Waste and Recycling Services as required by the Solid Waste and Recycling Franchise Agreement for FY 2026/27.
DISCUSSION
On April 19, 2022, the Council approved the Third Amendment and Restatement of the Solid Waste and Recycling Franchise Agreement to comply with the State’s Senate Bill 1383 Mandatory Organic Waste Disposal Reduction Legislation.
ID: 26-0202 Page 2
The City of Moreno Valley has an exclusive Franchise Agreement with USA Waste of California, Inc. for collecting and handling of solid waste, green waste, and recycling within the City (collectively, “solid waste”). Each year, the City Council reviews and considers for approval, as applicable, our waste haulers requested rates prior to those rates being assessed on the subsequent Fiscal Year’s (i.e., FY 2026/27) solid waste bills.
Per Section 16 E of the First Amendment to the Third Amendment of the Fran chise Agreement, the annual adjustment shall be effective July 1st of each year. The review shall consider the change in the average annual Consumer Price Index (CPI) from the year ending in December of the preceding year to the average annual CPI for the year ending in December of the prior year. 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 contracted 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 recomm end this alternative as it is not consistent with the terms of the Franchise Agreement.
FISCAL IMPACT
There are no impacts with this action.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
James Delgado Felicia London
Senior Management Analyst Chief Financial Officer/City Treasurer
Concurred By: Concurred By:
Diana Vargas Anna Chacon
Purchasing & Sustainability Division Manager Deputy Finance Director (Administration)
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.
ID: 26-0202 Page 3
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
ID: 26-0202 Page 4
Report Approval Details
Document Title: STAFFREPORT_FMS_PS_FOR RATE
ADJUSTMENT_05.19.26_FINAL.docx
Attachments: - Resolution 2026-XXX_FINAL.docx
- USA Waste of California, Inc. FY 26-27 Rate Adjustment Final.pdf
Final Approval Date: May 13, 2026
This report and all of its attachments were approved and signed as outlined below:
Natalia Medina
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez