Febru
ary 13, 2026
Anna Chacon
Purchasing & Sustainability Division Manager
Financial & Management Services
City of Moreno Valley
14177 Frederick Street
Moreno Valley, CA 92553
Re: 2026/2027 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 upcoming rate adjustment process.
Attached for your review, please find the 2026-2027 rate adjustment documentation and supporting data.
Pursuant to Section 16 of the franchise agreement, WM respectfully requests an adjustment to the trash and recycling/processing rates, to be effective July 1, 2026.
I would like to note a correction in our methodology for reporting multiple organic carts. Due to an administrative clerical error in previous years, accounts with two or more organic carts, particularly those with multiple sizes, were captured as having only one cart. We have since corrected this reporting discrepancy, and our records have been updated to accurately reflect all customers with two or more organic carts, regardless of size. This provides a more accurate inventory and accounts for the notable increase in the total organic cart count reflected in the customer list provided.
Should you need additional information or have any questions 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
B-1
Size Service Frequency FY 2025/26
Proposed Rate Rate Adjustment FY 2026/27
Proposed Rate
FY 2025/26
Proposed Rate Rate Adjustment FY 2026/27
Proposed Rate
1.5 1 131.31$ 4.18$ 135.49$ Temp bin service (up to 7 days) 178.44$ 5.86$ 184.30$
1.5 2 235.69$ 7.48$ 243.17$ Temp bin service (30 days) 393.92$ 12.93$ 406.85$
1.5 3 333.49$ 10.55$ 344.04$ Extra empty - first bin 71.78$ 2.36$ 74.14$
1.5 4 428.07$ 13.52$ 441.59$ Extra empty - addl bins 30.79$ 1.01$ 31.80$
1.5 5 529.10$ 16.71$ 545.81$ Pull-out service per bin
1.5 6 626.87$ 19.78$ 646.65$ 0-15 feet N/C N/C
21 151.93$ 4.81$ 156.74$ 16-35 feet 20.69$ 0.68$ 21.37$ 22 272.73$ 8.59$ 281.32$ 36-50 feet 31.04$ 1.02$ 32.06$ 23 385.65$ 12.13$ 397.78$ Over 51 feet 41.41$ 1.36$ 42.77$ 24 495.01$ 15.55$ 510.56$ Locking container 51.75$ 1.70$ 53.45$ 25 611.84$
19.19$ 631.03$ Restart fee 62.10$ 2.04$ 64.14$
26 724.76$ 22.73$ 747.49$ Special bin/container lid 20.42$ 0.67$ 21.09$ 31 193.13$ 6.08$ 199.21$ Overage fees 71.84$ 2.36$ 74.20$ 32 346.41$ 10.84$ 357.25$ Bin exchange - over 1 per year 61.41$ 2.02$ 63.43$ 33 489.95$ 15.28$ 505.23$ Bin exchange - service level change 61.41$ 2.02$ 63.43$ 34 629.01$ 19.58$ 648.59$ Bulky item collection 23.02$ 0.76$ 23.78$ 35 777.04$ 24.18$ 801.22$ Set up fee 35.98$ 1.18$ 37.16$ 36 920.56$ 28.62$ 949.18$ Redelivery fee 71.97$ 2.36$ 74.33$ 41 245.67$ 7.71$ 253.38$ Commercial Recycle Contamination 84.36$ 2.77$ 87.13$ (2)
42 440.74$ 13.76$ 454.50$ Replacement Lock 33.17$ 1.09$ 34.26$ 43 623.29$ 19.40$ 642.69$ Replacement Key 6.64$ 0.22$ 6.86$ 44 800.24$ 24.85$ 825.09$ Haul or Call Fee 33.17$ 1.09$ 34.26$ 45 988.41$ 30.68$ 1,019.09$ Extra empty - Compactor 106.13$ 3.48$ 109.61$ 46 1,171.00$ 36.32$ 1,207.32$ AB341 Non compliance fee 19.91$ 0.65$ 20.56$ 61 308.16$ 9.59$ 317.75$
62 555.22$ 17.17$ 572.39$
63 787.44$ 24.26$ 811.70$
6 4 1,012.87$ 31.12$ 1,043.99$
6 5 1,251.94$ 38.44$ 1,290.38$
FY 2025/26
Proposed Rate Rate Adjustment FY 2026/27
Proposed Rate
66 1,484.09$ 45.53$ 1,529.62$ Hauling fee 293.63$ 9.64$ 303.27$ (3) Compactor hauling fee 424.44$ 13.93$ 438.37$ (3)
Monthly minimum pull fee 293.63$ 9.64$ 303.27$
Size Service Frequency FY 2025/26
Proposed Rate Rate Adjustment FY 2026/27
Proposed Rate Monthly minimum pull fee (compactor) 424.44$ 13.93$ 438.37$
1.5 1 160.29$ 4.86$ 165.15$ Temporary flat fee (incl 4 tons) 527.60$
16.49$ 544.09$ (4)
1.5 2 293.66$ 8.84$ 302.50$ Organics 722.95$ 23.73$ 746.68$ (3)
1.5 3 420.47$ 12.61$ 433.08$ C&D 569.24$ 18.68$ 587.92$ (3)
1.5 4 544.07$ 16.27$ 560.34$ Delivery 102.31$ 3.36$ 105.67$
1.5 5 674.13$ 20.14$ 694.26$ Extra trip 102.31$ 3.36$ 105.67$
1.5 6 800.84$ 23.90$ 824.74$ Relocation 102.31$ 3.36$ 105.67$ 21 190.58$ 5.73$ 196.30$ Set up fee 35.97$ 1.18$ 37.15$ 22 350.06$ 10.43$ 360.49$ Recycle Report Fee 33.15$ 1.09$ 34.24$ 23 501.64$ 14.87$ 516.52$
24 649.72$ 19.20$ 668.92$
25 805.14$ 23.78$ 828.91$
26 956.77$ 28.22$ 984.99$
3 1 251.10$ 7.45$ 258.55$ Size Service Frequency FY 2025/26 Proposed Rate Rate Adjustment FY 2026/27
Proposed Rate
32 462.39$ 13.59$ 475.97$ 96-Gallon Cart 1 14.53$
33 663.91$ 19.41$ 683.32$ 96-Gallon Cart 2 29.06$
34 861.02$ 25.08$ 886.10$ 96-Gallon Cart 3 43.59$
35 1,067.05$ 31.05$ 1,098.10$
96-Gallon Cart 4 58.12$
36 1,268.58$ 36.87$ 1,305.45$ 96-Gallon Cart 5 72.65$ 41 323.05$ 9.54$ 332.59$ All Sizes 1 87.18$ 2.86$ 90.04$ (5) 42 595.44$ 17.42$ 612.86$ All Sizes 2 174.34$ 5.72$ 180.06$ (5) 43 855.30$ 24.89$ 880.20$ All Sizes 3 261.54$ 8.58$ 270.12$ (5) 44 1,109.58$ 32.18$ 1,141.76$ All Sizes 4 348.70$ 11.45$ 360.15$ (5) 45 1,375.08$ 39.83$ 1,414.92$
All Sizes 5 435.90$ 14.31$ 450.21$ (5)
4 6 1,635.03$ 47.31$ 1,682.33$ All Sizes 6 523.07$ 17.17$ 540.24$ (5) Extra empty (bin) 39.79$ 1.31$ 41.10$
Size Service Frequency FY 2025/26
Proposed Rate Rate Adjustment FY 2026/27
Proposed Rate
2 1 291.71$ 9.58$ 301.29$
FY 2025/26
Proposed Rate Rate Adjustment
FY 2026/27
Proposed Rate
2 2 582.68$ 19.13$ 601.81$ Recycling Material Offset $ - $ - $ - 2 3 873.64$ 28.68$ 902.32$ $ 33.59 0.63$ 34.22$
2 4 1,164.55$ 38.23$ 1,202.78$ $ 30.23 0.57$ 30.80$ 2 5 1,455.49$ 47.77$ 1,503.26$ $ 5.78 0.15$ 5.93$ 2 6 1,746.41$ 57.32$ 1,803.73$ $ 7.32 0.17$ 7.49$ 64-Gallon Cart 1 54.34$ 1.78$ 56.12$ N/C N/C (6)
64-Gallon Cart 2 108.68$ 3.57$ 112.25$ $ 9.60 0.21$ 9.81$ 64-Gallon Cart 3 163.04$ 5.35$ 168.39$ $ 10.66 (0.09)$ 10.57$ 64-Gallon Cart 4 217.38$ 7.14$ 224.52$ $ 4.04 0.13$ 4.17$ 64-Gallon Cart 5 271.72$ 8.92$ 280.64$ $ 3.53 0.12$ 3.65$ 64-Gallon Cart 6 326.07$ 10.70$ 336.77$ $ 14.28 0.47$ 14.75$ $ 23.03 0.76$ 23.79$ (7)(8)
$ 23.03 0.76$ 23.79$
$ 178.48 5.86$ 184.34$
$ 393.92 12.93$ 406.85$
$ 17.28 0.57$ $ 17.85
$ 16.88 0.55$ 17.43$
Footnotes
(1) Includes one 96-gallon recycle cart serviced one time per week and one 64-gallon organics cart serviced 1 time 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 & Multi-Family Organics
Senior citizen discount rate
Roll off
Attachment 1
City of Moreno Valley
Solid Waste and Recycling Rates
Effective July 1, 2026
Commercial & Multi-Family Service (1) Commercial Misc Services Container changes over 1 per year
Commercial Compactor Service
Commercial & Multi-Family Recycling
Single family rate
Residential Service
Per bag charge
B-2
HF&H Consultants
590 Ygnacio Valley Rd. Suite 105
Walnut Creek, CA 94596
Phone: (925) 977-6950
Web: hfh-consultants.com
April 1, 2026
Diana Vargas
Purchasing & Sustainability Manager
City of Moreno Valley
14177 Frederick St.
Moreno Valley, CA 92553
Sent via email: [email protected]
Subject: Solid Waste Rate Adjustment Review – FY 2026-27 Dear Diana Vargas,
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 (FY) 2026-27 rate adjustment request for the City of Moreno Valley (City).
Background
WM serves as the exclusive franchise hauler for the City, collecting solid waste, recyclable materials, and organic materials (including green waste) from all residences and businesses.
A Third Amendment and Restatement of the Agreement (Agreement) went into effect on July 1, 2022, in which Section 16 governs change to WM’s compensation for providing services. In February 2024, the parties signed the First Amendment to the Agreement (Amendment), which amended the definition of Consumer Price Index (CPI) as well as the Modification and Adjustment of Rates (Section 16.E).
Methodology
WM submitted its initial rate adjustment application to the City in February 2026; the City subsequently requested that HF&H review WM’s rate adjustment application , subject to approval by the City. HF&H reviewed the initial application and supporting documentation and requested updates to the rate application and additional supporting documentation from WM on March 10, 2026. WM provided the supporting documentation on March 12 and resubmitted the rate application on March 13. Updates to the rate application submitted on March 13 resulted in a minor change to the commercial solid waste disposal component of the rate. This change was not reflected in WM’s separate commercial and multi -family rate calculation document, which required HF&H to request another round of updates on March 23. WM provided a third submission of the rate application and commercial and multi -family rate calculations on March 25. HF&H performed the following steps while completing our review of the final March 25 rate adjustment application:
• Reviewed contractual requirements for WM’s rate adjustment (see Attachment A) Diana Vargas
April 1, 2026
• Reviewed the final proposed rate adjustment calculation from WM that was submitted on March 25 (see Attachment B)
• Reviewed all supporting documentation regarding tonnage, customer counts, cart counts, weighted average for organic materials processing costs, and commercial and multi-family r
ate calculations
• Confirmed the disposal rate for Riverside County (County) landfills effective July 1, 2026 via
their website
• Confirmed the change in the 12 -month average CPI to Series ID: CUURS49CSA0 using data from the U.S. Bureau of Labor Statistics
Findings
CONSUMER PRICE INDEX
The change in the 12 -month average CPI is used to adjust the service component of the residential rates and the commercial & multi-family rates, as well as ancillary services such as extra charges, delivery fees, and distance charges. The CPI adjustment to Series ID:
CUURS49CSA0—all items in Riverside-San Bernardino-Ontario, CA, all urban consumers, not seasonally adjusted—corresponds to a 3.28% increase.
DISPOSAL AND PROCESSING COSTS
Solid Waste Disposal
• HF&H confirmed via the County website that the disposal rate for landfills will increase from $51.18 to $52.68 per ton beginning July 1, 2026. This change in the landfill disposal rate coupled with a change in disposal tonnage per household results in a 1.55% increase in the residential solid waste disposal component.
• Commercial tonnage decreased by 4.22%, roughly aligning with the 3.35% decrease in the total number of commercial accounts. When factoring in the disposal rate increase at County landfills, th e commercial disposal component increased by 2.00% as shown in Attachment B.
Organic Materials Processing
• WM used a weighted average rate for organic materials processing based on the tonnage transported to three facilities and the per -ton gate rates at those facilities. There is no language in the Agreement that specifies how the organic materials processing rate should be calculated. WM provided, and HF&H confirmed, that the weighted average rate was calculated as shown in the table below.
Diana Vargas
April 1, 2026
Facility Tons from Jan. –
Dec. 2025
Cost per Ton % of Total
Tons
Weighted Cost
per Ton
Ecology Compost Facility 18,062.11 $98.41 86.62% $85.25 Otay Compost Facility 989.10 $108.54 4.74% $5.15
Pala Compost Facility 1800.31 $102.90 8.63% $8.88
Total 20,851.52 100.00% $99.28
RATE CALCULATIONS
The final rates for residential, commercial and multi-family, and compactor service 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 t
he rate based on the County disposal rate effective July 1, 2026 and confirmed that the rates submitted from WM were calculated consistently with the Amendment. • WM applied the annual CPI increase of 3.28% to the residential service component.
Additionally, WM applied the County disposal rates and weighted average organic materials pr
ocessing rates to the disposal and organic materials processing components. WM calculated, and HF&H confirmed, an overall 1.88% increase in the standard residential service rate.
Commercial and Multi-Family Service
• For commercial and multi -family accounts, the service component will increase by the annual CPI adjustment of 3.28%. The disposal component of the commercial and multi - family rate adjustment increased by 2.00% as described in the Solid Waste Disposal section on page two of this letter and in Attachment B. • 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.
COMMERCIAL RECYCLING CARTS
With the FY 2026- 27 rate application, WM proposed the addition of rates for secondary recycling carts for commercial and multi -family customers. Currently, the City’s solid waste rates include one 96-gallon recyclable materials cart and one 64-gallon organic materials cart serviced one time per week per customer at no additional charge. Commercial and multi - family customers may voluntarily subscribe to additional organic materials and/or recyclable materials services as needed. There are existing rates for organic materials collected in two- cubic yard bins and 64-gallon carts as well as recycl able materials collected in any bin size.
However, additional recyclable material carts have not previously been offered. The costs for providing this new service were not analyzed; however, the rates were compared to other Diana Vargas
April 1, 2026
local cities serviced by WM (San Dimas and Oceanside), and the proposed rates for the City are well below the rates for the other cities. City staff agree with the proposal to add an “additional commercial recycling cart service ,” at the rates proposed by WM and included herein. Commercial recycling cart rates will be adjusted annually according to CPI.
RESIDENTIAL ORGANIC MATERIALS CARTS
As part of the rate application, the cost for additional residential solid waste and organic materials carts is calculated separately from the standard residential bundled rate , which includes one cart each for solid waste, recyclable materials, and organic materials. WM provided data on the total number of residential solid waste and organic materials carts in use, which, along with the total tonnage collected per cart and disposal or processing rate, is used to determine the new rate per cart. However, residential customers in the City are able to request one additional organic materials cart free of charge. Therefore, these free additional organic materials carts are removed from the calculations as shown in Attachment B. This year, WM noted in the submittal letter dated February 13, 2026 that “due to an administrative clerical error in previous years, accounts with two or more organic carts, particularly those with multiple sizes, were captured as having only one cart.” In 2024 and 2025, the reported number of free additional residential organic materials carts was 526 and 568, respectively.
This year, WM reported 3,320 free additional residential organic materials carts. As in previous years, HF&H confirmed these figures using the supporting documentation provided by WM ; however, this information was self-reported by WM and not independently verified.
Recommendations
INDEPENDENT AUDIT
HF&H strongly recommends that the City perform an audit of WM records during the next rate adjustment, as authorized under Section 22.A of the Agreement. This would enable the City to independently verify the infor mation provided as part of the rate adjustment , such as organic materials processing rates, number of tons collected and delivered to each facility by generator type, customer counts, and number of carts. As noted for this year, an error was identified in WM’s system regarding the number of reside ntial organic materials carts, and that error has a material effect on the rate adjustment. Independently auditing and verifying the data inputs to the rate adjustment provides additional transparency to ratepayers.
RATE APPLICATION UPDATES
HF&H strongly recommends that the City requires WM to embed the commercial and multi- family rate calculation Excel file into the rate application document. This would streamline the process and avoid potential future technical issues with cells linking to external documents, which is what occurred during this year’s process. Combining the documents would also leave less room for human error and provide transparency on how the rates are calculated.
Additionally, the City would benefit from requiring WM to embed the calculations for the weighted average for organic materials processing rates in the rate application document to expedite review of the rate application.
Diana Vargas
April 1, 2026
Limitations
Our review differed in scope compared to 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 independently verified the change in the 12 -month average CPI using the U.S Bureau of Labor Statistics, as well as the Riverside County landfill disposal fees using the County’s website. However, HF&H did not independently verify other WM self-reported data such as the number of residential or commercial customers, number of solid waste and organic materials carts, and the costs associated with organic materials processing. HF&H also 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. * * * *
H
F&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 pmainolfi@hfh- consultants.com.
S
incerely,
HF&H CONSULTANTS, LLC
R
ob Hilton Philip Mainolfi
President Senior Project Manager
A
ttachments
Attachment A – Rate Methodology
Attachment B – Rate Adjustment Transmittal Letter and Application