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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 17, 2026
To: Honorable Mayor and City Council Members
From: Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Resolution Declaring Intent to Conduct a Public Hearing on August 19, 2026, to Consider Adjusting the Maximum
Permitted Service Rates for Solid Waste, Recycling,
Organic Waste Collection, Processing, and Disposal
Services (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, Calidornia, adopt Resolution No. 2026-089, declaring its intention to conduct a public hearing on August 19, 2026, to consider adjusting the maximum permitted service rates for solid waste, recycling, organic waste collection, processing, and disposal services.
City Manager's Comments
This item has proposed rates from Burrtec including the 3.28% CPI adjustment and a request for increases in permissible service rate increases based on implementation of operation changes based on requirements of State law including the implementation of SB 1383.
Executive Summary
The City of San Bernardino (City) and Burrtec Waste, Inc. (Burrtec), have an exclusive franchise agreement (Agreement) for solid waste, recycling and organics collection and processing services within the City. These services include residential/multifamily homes, and commercial/industrial businesses. Through the terms of the franchise agreement, Burrtec may request annual rate increases to cover the increased costs, if any, of providing solid waste collection and processing services. Such costs include annual adjustments for inflationary increases in Consumer Price Index (CPI), and any additional increased operation costs.
This action is to commence the rate setting process for FY 2026-27 by declaring the 55600.00224\44821016.1
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City’s intent to conduct a public hearing on August 19, 2026. The hearing will be to consider the recommended rate increase(s) as proposed by Burrtec, and to comply with the noticing requirements set forth in Proposition 218. If the resolution is approved, City staff will coordinate with Burrtec to mail the required Proposition 218 Notice (Attachment 2) to all affected residential and commercial customer accounts.
Background
The term of the 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. The CPI for the rate increases shall refer to the 12-month annual average percentage change for the most recent January 1 to December 31 period, compared to the prior January 1 to 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.
Under Section 21.1.3(a) of the Agreement, Burrtec may submit a proposed annual Consumer Price Index (CPI) inflationary rate adjustment and rate schedule to the City Manager for review by March 1 each year. The Agreement, per section 21.1.3(b), restricts the increase in Maximum Permissible Service Rates increase over 5% during any July 1 – June 30 period regardless of the amount increase in the CPI. However, if the changes to the CPI result in an increase above 5%, or below 0%, they shall be carried forward or applied in subsequent years.
Under Section 21.1.3(c) of the Agreement with Burrtec, “Contractor may adjust the Maximum Permissible Service Rates by an amount equal to the increase or incremental increase, as the case may be, in the costs (i.e. on any direct or indirect cost, whether fixed or variable) of Contractor’s provision of services under this Agreement that are caused by the Change in Law and that have been demonstrated to the City Council.”
Discussion
Burrtec has provided the City with the FY 2026-27 proposed solid waste rate adjustments (Attachment 3). Burrtec is requesting an annual CPI-based adjustment of
3.28% to all of the Permissible Service Rates per Section 21.1.3(a) of the Agreement.
Burrtec is requesting increases to the Permissible Service Rates under Section
21.1.3(c) for a second, and final, phase in of Change in Law operations costs as a direct impact of implementing Senate Bill (SB) 1383. These increases are varying and are based on the increase costs for Burrtec to implement SB 1383 with specific services. In discussions with Burrtec, staff is aware that while the law change for SB1383 occurred in 2022, Burrtec has not been able to fully implement the actual costs of service implementation increases for this. Some costs were permitted to be recovered in the FY2025 Rate increase; this proposed increase due to Change in Law will fully amortize the costs of SB 1383 implementation. 55600.00224\44821016.1
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Furthermore, Burrtec is requesting a minor adjustment in the rate as a “Catch-Up” component to recover costs for the delay of the rate hearing and rate adoption from July 1, as determined in the franchise agreement, to August 19, 2026. The proposed rate adjustments reflect the minimum CPI rate increases allowed by the agreement as well as Burrtec’s proposed balance of the SB 1383 program costs under the Change in Law provisions stated in the agreement.
Collectively, the proposed increases account for a 13.2% increase to residential and multi-family barrel/cart Permissible Service Rates. The following table includes a demonstration of (not all) Burrtec proposed increases to the Permissible Service Rates:
Residential Service Current
Rates
Proposed 2026
Rates
Dollar
Increase
Percent
Increase
Resi/MF Barrel (3 carts)
1x Week
$27.75 $31.41 $3.66 13.2%
Mobile Home (3 Carts)
1x Week
$18.62 $21.24 $2.62 14.1%
Multi-Family Mixed
Organics (65gal Cart)
1x Week
$80.13 $83.00 $2.87 3.58%
Commercial Barrel 1x
Week
$27.61 $29.16 $1.55 5.6%
Commercial Trash
3cu.yd. 1x Week
$166.14 $172.09 $5.95 3.58%
Commercial Green
Waste 3cu.yds. 1x
Week
$136.53 $141.42 $4.89 3.58%
Commercial Food
Waste 2cu.yd. 1x Week
$270.42 $280.09 $9.67 3.58%
Roll Off Service All
Refuse Temporary
(Includes Disposal)
$638.25 $661.09 $22.84 3.58%
Service 2025
Rate
SB 1383
Change-in-
Law (incld
CPI)
CPI
(3.28%)
July
Delay
Catch-Up
Franchise
Fee
(20%)
Proposed
2026
Rate
Total
Residential/MF $27.75 $1.96
($29.71)
$0.73
($30.44)
$0.24
($30.68)
$0.73
($31.41)
$31.41
Residential
35gal
$24.60 $1.96
($26.56)
$0.65
($27.21)
$0.24
($27.45)
$0.71
($28.16)
$28.16
Mobile Home 2
Barrel
$18.62 $0.41
($19.03)
$0.49
($19.52)
$0.08
($19.60)
$0.25
($19.85)
$19.85
Mobile Home 3
Barrel
$18.62 $2.77
($21.39)
$0.49
($21.56)
$0.17
($21.73)
$0.53
($22.26)
$21.24
(phase in
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credit -
$1.34)
Commercial
Barrel
$27.61 $0.41
($28.02)
$0.73
($28.75)
$0.10
($28.85)
$0.31
($29.16)
$29.16
For complete details regarding the proposed rate increases for 2026-27, see Attachment 3.
While this proposed action includes Burrtec’s requested increase(s) for Change in Law per the agreement and is only being considered for this 2026-2027 increase, staff is recommending City Council adopt an annual pass through to all Solid Waste Services customers automatic CPI adjustments for inflation (“Annual Automatic Adjustments”) as authorized under the franchise agreement. These adjustments will impact the Solid Waste Services rates.
If approved, beginning July 1, 2027, and each July 1 thereafter, through and including adjustments effective on or after July 1, 2030, the rates for Solid Waste Services may be adjusted annually, without a further public hearing, by an amount not to exceed the annual percentage increase, if any, in the CPI, subject to a maximum increase of 5% annually. In no event may an automatic increase exceed the City’s cost of providing Solid Waste Services. This pass-through language will also be demonstrated within the Proposition 218 Notice that shall be mailed (see Attachment 2). This action will allow CPI changes (not Change in Law), which are determined and go through the public hearing process, to be passed through without the need for a public hearing or resolution for the remainder of the current agreement term. Any future change in law requested increases will continue to require a public hearing process and resolution.
Upon approval of the resolution, the City will set a proposed public hearing in order to consider the proposed solid waste rates proposed for FY 2026-27. 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 at least 45 days prior to the public hearing. The proposed date of the public hearing is August 19, 2026, and is 49 days from the date of the City Council meeting setting the public hearing date (June 17, 2026). At the public hearing, the Mayor and City Council will consider whether a majority protest exists. If the rates are adopted on August 19, 2026, they will be effective starting August 1, 2026. 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.
Key Target No. 3d: Improve Quality of Life by improving the City’s appearance, cleanliness, and attractiveness.
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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, California, adopt Resolution No. 2026-089, declaring its intention to conduct a public hearing on August 19, 2026, to consider adjusting the maximum permitted service rates for solid waste, recycling, organic waste collection, processing, and disposal services.
Attachments
Attachment 1 Resolution No. 2026-089
Attachment 2 Proposed Proposition 218 Notice
Attachment 3 Table of Proposed Solid Waste Rates 2026-27 Attachment 4 Burrtec 2016 Franchise Agreement
Attachment 5 Burrtec 2016 Franchise Agreement – Amendment 1 Attachment 6 Burrtec 2016 Franchise Agreement – Amendment 2 Attachment 7 Burrtec 2016 Franchise Agreement – Amendment 3 Ward:
All Wards
Synopsis of Previous Council Actions:
July 2, 2025 Conduct a Public Hearing to Consider Adjusting the Maximum Permitted Service Rates for Integrated Solid Waste Collection, Processing, and Disposal Services (All Wards).
May 7, 2025 Resolution of the Mayor and City Council of the City of San Bernardin, California, Declaring it’s Intention to Conduct a Public Hearing on July 2, 2025, to Consider Adjusting the Maximum Permitted Service Rates for Integrated Waste Collection, Processing and Disposal Services (All Wards)
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.
CC: Eric Levitt, City Manager