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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: July 2, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager;
Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Conduct a Public Hearing 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:
1. Conduct a public hearing to receive public comments on the proposed Maximum Permitted Service Rates for Integrated Solid Waste Collection, Processing, and Disposal Services; and,
2. Determine if written protests have been received from the owners and tenants of parcels which are subject to the Maximum Permitted Services Rates for Integrated Solid Waste Collection, Processing, and Disposal and whether a majority protest has been received; and,
3. If there is no majority protest, adopt Resolution No. 2025-310 of the Mayor and City Council of the City of San Bernardino, California establishing the Maximum Permitted Service Rates for Integrated Solid Waste Collection, Processing, and Disposal starting July 2, 2025.
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. Through the franchise agreement, Burrtec may request periodic rate increases 2 7
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to cover the costs of providing solid waste collection and processing services. The proposed rate increase is $1.33 per residence; the CPI portion is 2.61% or $0.6895 while the remaining 2.39% is $0.6314 per single-family residential account. This would raise the residential rate from $26.42 to $27.75 per month. Commercial rates may increase from 2.61% to 8%, depending on the type and frequency of the commercial service.
Under Proposition 218 (Article XIII D, Section 6 of the California Constitution), notice of a public hearing regarding rate increases was mailed to property owners and tenants of the properties receiving solid waste collection services 45 days in advance of this scheduled public hearing. (Attachment 2).
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 (a) 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. Section 21.1.3(b) of 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 of 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 rate increase is $1.33 per residence or 5.03%. In the proposed current rate, the CPI portion is 2.61% or $0.6895 while the remaining 2.39% is $0.6314 per single-family residential account. This would raise the residential rate from $26.42 to $27.75 per month.
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It's important to note that the City of San Bernardino continues to have the lowest rate in the region, and that cities such as Los Angeles and San Diego are proposing monthly residential rate increases above $50.00. Attachment 1 shows current and proposed residential refuse rates in effect for 2024-2025 and proposed (where applicable) for 2025-2026 for various jurisdictions within the southern California area. As shown in Attachment 1, residential refuse rates for FY2025-2026 range from $27.75 as proposed for the City of San Bernardino to a high of $43.81 for the City of Ontario; the average for 18 cities surveyed is $37.07.
In addition, Burrtec is entitled to CPI increase for Commercial Rates of 2.61%. With SB 1383 Program Costs, these proposed increases range from 4-8% based on frequency based on collection.
2021-2025 Strategic Targets and Goals
Setting the public hearing aligns with Key Target No. 3c: Improved Quality of Life by evaluating and enhancing the quality of public safety services and Key Target No. 3d: Improved Quality of Life by improving the City’s appearance, cleanliness, and attractiveness
Fiscal Impact
There is an anticipated increase in revenues to the General Fund if the rate increase is adopted by the Mayor and City Council. These revenues will vary based on the types of solid waste services selected by the community. In FY 2024-25, the City expects to receive $10,763,500 in franchise fees. If the solid waste rates are approved, this amount may increase by approximately 5% in FY2025-26.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Conduct a public hearing to receive public comments on the proposed Maximum Permitted Service Rates for Integrated Solid Waste Collection, Processing, and Disposal Services; and,
2. Determine if written protests have been received from the owners and tenants of parcels which are subject to the Maximum Permitted Services Rates for Integrated Solid Waste Collection, Processing, and Disposal and whether a majority protest has been received; and,
3. If there is no majority protest, adopt Resolution No. 2025-310 of the Mayor and City Council of the City of San Bernardino, California establishing the Maximum Permitted Service Rates for Integrated Solid Waste Collection, Processing, and Disposal starting July 2, 2025.
Attachments
Attachment 1 Residential Rate Survey
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Attachment 2 Proposition 218 Notice
Attachment 3 Proposed Solid Waste Rates
Attachment 4 Resolution 2025-310
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 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 2 7
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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.
May 4, 2025 – 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)