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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: May 7, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager;
Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Resolution Declaring Intention to Conduct a Public Hearing on July 2, 2025, to Consider Adjusting the
Maximum Permitted Service Rates for Integrated Solid
Waste Collection, Processing, And Disposal Services (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino California, Adopt Resolution No. 2025-285, Declaring its intention to conduct a public hearing on July 2, 2025, to consider adjusting the maximum permitted service rates for integrated solid waste collection, processing and disposal services.
Executive Summary
The City of San Bernardino (“City”) has an exclusive franchise agreement (“Franchise Agreement”) with Burrtec Waste Industries (“Burrtec”) to provide solid waste, recycling and organics collection and processing services to all residential, commercial and industrial businesses within the City through automated carts, front-load bins, roll-offs.
Burrtec also provides street sweeping and right-of-way cleanup through the Franchise Agreement. Through the franchise agreement, Burrtec may request periodic rate increases to cover the costs of providing solid waste collection and processing services.
Under Proposition 218 (Article XIII D, Section 6 of the California Constitution), notice of a public hearing regarding rate increases must be mailed to property owners and tenants of the properties receiving solid waste collection services at least 45 days in advance of the scheduled public hearing. The proposed resolution would commence the rate-setting process for Fiscal Year (FY) 2025-26 by declaring the City’s intent to set the public hearing for July 2, 2025. If the resolution is approved, staff will mail the Proposition 218 notice to property owners and tenants.
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Background
The term of the franchise agreement for solid waste services was initially April 1, 2016 through March 31, 2026 and was subsequently extended to March 31, 2031 by the adoption of the Third Amendment to the Franchise Agreement on July 3, 2024.
Consumer Price Index Adjustments
Section 21.1.3 of the franchise agreement between Burrtec and the City provides that Burrtec may increase the Maximum Permitted Service Rates by the Consumer Price Index (“CPI”) each July 1. The franchise agreement allows for a CPI rate adjustment to a maximum of a 5% increase annually, with any amount above 5% or below 0% carried forward and applied in subsequent years. Burrtec must send the proposed rate adjustment calculations and full rate schedule to the City Manager for review by March 1 each year.
The CPI for the rate increases shall refer to the 12-month annual average percentage change for the most recent January 1 – December 31 period, compared to the prior January 1 – December 31 period, in the All Urban Consumers Index (CPI-U), Not Seasonally Adjusted, All Items, Riverside-San Bernardino-Ontario, CA, as published by the U.S. Department of Labor, Bureau of Labor Statistics.
Discussion
Burrtec has provided the City with the FY 2025-26 Proposed Solid Waste Rate adjustments (See Attachment 3). Burrtec is entitled to a 2.61% CPI adjustment for residential customers. Due to increased costs for materials and fuels, Burrtec has requested an additional increase of 2.39% to recover a small portion of the overall SB 1383 Residential Program Costs. This small increase for the SB 1383 organic waste program recognizes that program costs for the implementation of the SB 1383 regulations are causing upward pressure on residential rates after the first full year of implementation. The total proposed increase for residential customers is 5%.
In discussions with Burrtec, SB 1383 costs are increasing significantly, and it is anticipated that future rate increases on residential rates will consist of SB 1383 cost recovery and CPI as the program matures.
In addition, Burrtec is entitled to a 2.61% CPI increase for Commercial Rates. With SB 1383 Program Costs, these increases range from 4-8% based on frequency based on collection.
The following table provides examples of some of the rate increases proposed:
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The City is complying with Proposition 218 out of an abundance of caution and without conceding its applicability to privately provided solid waste services. The City will set a proposed public hearing in order to consider the proposed solid waste rates proposed for FY 2025-26. The City and Burrtec will mail or cause to be mailed to both the property owner and tenants of the properties receiving solid waste services a notice of the proposed public hearing regarding the rate increases 45 days prior to the public hearing. The earliest that the public hearing may be set is June 21, 2025; the proposed date of the public hearing with be July 2, 2025, and is 56 days from this Council meeting. At the hearing the Mayor and City Council will consider whether a majority protest exists.
While this proposed action is for a one-year rate increase, from July 1, 2025 through June 30, 2026, staff will be recommending the Council adopt a multiple year rate increase next year.
These elements may include increases in solid waste rates due to the increase in (a) disposal fees at San Bernardino County landfills (so-called “tipping fees”), (b) recyclables and organics processing and disposal costs, (c) the annual percentage increase in the CPI, (d) increased costs for complying with State solid waste diversion mandates (e.g.: AB 939; AB 1826) and, (e) applicable business taxes and permit fees under the Franchise Agreement.
Such a mechanism would be used to establish future solid waste rates for between three to five years, based on the direction of the Council, and would result in both Service LevelCurrent FY24-25 RateProposed FY25-26 RatePercent increaseResidential/MF Barrel (3 carts)$26.42 $27.75 5.03%Commercial trash 3 cu. yrd. 1 X week$137.52 $147.30 6.58%Commercial green waste 3 cu yds 1 X week133.0513.532.62%Commercial trash 4 cu. yrd. 3 X week$478.75 $515.97 7.77%Commercial green waste 4 cu yds 3 X week$396.78 $407.15 2.61%Commercial Food Waste 2 cu. yrd. 3 x week$670.32 $687.85 2.62%Roll off service (include disposal)$615.90 $638.25 3.63% 2 6
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predictable future rates for solid waste, organics and recyclables collection and processing, but provide savings by not requiring additional public hearings. The council would be able to amend the Franchise Agreement to establish appropriate caps on various elements to further control rate escalation.
2021-2025 Strategic Targets and Goals
Setting the public hearing aligns with Key Target No. 3c: Improve Quality of Life by evaluating and enhancing the quality of public safety services and Key Target No. 3d:
Improve Quality of Life by improving the City’s appearance, cleanliness, and attractiveness
Fiscal Impact
There is no fiscal impact for setting the Public Hearing. There is an anticipated increase in revenues to the General Fund if the rate increase is adopted by the Mayor and City Council.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, Adopt Resolution No. 2025-285, Declaring its intention to conduct a public hearing on July 2, 2025, to consider adjusting the maximum permitted service rates for integrated solid waste collection, processing and disposal services.
Attachments
Attachment 1. Resolution No. 2025-285
Attachment 2: Proposed Proposition 218 Notice
Attachment 3: Table of Solid Waste Rates
Ward:
All Wards
Synopsis of Previous Council Actions:
January 25, 2016 Resolution of the Mayor and City Council of San Bernardino approving a ten-year Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc.
December 7, 2022 Notice of Intent to Conduct a Public Hearing on December 7, 2022, to Consider Adjusting the Maximum Permitted Service Rates for Integrated Solid Waste Collection, and Organic Waste Collection, Processing and Disposal Services, Street Sweeping, and Right-of- Way Cleanup Service.
February 15, 2023 Public Hearing Regarding Solid Waste Rate Increases and Resolution Adopting Rates for Solid Waste Services, Approving Third Amendment to the City’s Exclusive Franchise Agreement for 2 6
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Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc., and Finding the Action Exempt from the California Environmental Quality Act (All Wards).
May 17, 2023 Public Hearing Regarding Solid Waste Rate Increases and Resolution Adopting Rates for Solid Waste Services, Approving Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc., and Finding the Action Exempt from the California Environmental Quality Act (All Wards) June 21, 2023 Continuation, to July 19, 2023, of Public Hearing Regarding Solid Waste Rate Increases and Resolution Adopting Rates for Solid Waste Services, Approving Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc., and Finding the Action Exempt from the California Environmental Quality Act.
July 19, 2023 Continuation to September 6, 2023, of Public Hearing Regarding Solid Waste Rate Increases and Resolution Adopting Rates for Solid Waste Services, Approving Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc., and Finding the Action Exempt from the California Environmental Quality Act.
September 6, 2023 Continuation, to January 17, 2024, of Public Hearing Regarding Solid Waste Rate Increases and Resolution Adopting Rates for Solid Waste Services, Approving Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc., and Finding the Action Exempt from the California Environmental Quality Act.
January 17, 2024 Cancellation of January 17, 2024, Public Hearing Regarding Solid Waste Rate Increases and Resolution Adopting Rates for Solid Waste Services, Approving Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc., and Finding the Action Exempt from the California Environmental Quality Act
July 3, 2024 Approval of the Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc.