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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: August 19, 2026
To: Honorable Mayor and City Council Members
From: Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Public Hearing and Adoption of Fiscal Year 2026-2027 Maximum Permitted Solid Waste Service Rates and Future
CPI Adjustments Through Fiscal Year 2030-2031 (All
Wards).
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Conduct the public hearing regarding 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 Service 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 2026-131 of the Mayor and City Council of the City of San Bernardino, California approving the Fiscal Year 2026-2027 Maximum Permitted Service Rates and the annual CPI adjustment schedule for Fiscal Year 2027-2028 through Fiscal year 2030-2031.
City Manager's Comments
The City Manager recommends approval. The SB 1383 increase is a part of the increase this year. Even with the increase, San Bernardino remains the second lowest cost compared to other area cities.
Executive Summary
The City's franchise agreement with Burrtec Waste Industries allows annual CPI adjustments to Maximum Permitted Service Rates and additional adjustments for documented costs resulting from changes in law. Burrtec is requesting FY 2026/27 rate adjustments consisting of a 3.28% CPI adjustment, the second and final proposed 3 0
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phase of SB 1383 compliance costs, and a catch-up component associated with the delayed 2026 rate implementation.
Under the proposal, the standard residential/multi-family three-cart rate would increase from $27.75 to $31.41 per month, an increase of $3.66 or 13.2%. Other residential and commercial adjustments vary by service type.
Council is also being asked to authorize CPI-only adjustments beginning July 1, 2027 through July 1, 2030, subject to the adopted formula, a 5% annual cap, applicable cost- of-service limitations, and advance customer notice. Future Change-in-Law adjustments are not included in that automatic authority.
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 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. 3 0
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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 vary 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 SB 1383 occurred in 2022, Burrtec has not been able to fully implement the actual costs of service implementation increases. Some costs were permitted to be recovered in the FY 2025 Rate increase; this proposed increase due to Change in Law will fully amortize the costs of SB 1383 implementation.
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 tables include demonstrations of (not all) Burrtec proposed increases to the Permissible Service Rates:
Table 1
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%
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Table 2
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
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.
Burrtec’s requested increase(s) for Change in Law per the agreement and is only being considered for this FY 2026-2027 increase, however 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. 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. 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 CPI rate adjustment; this action will simplify the process with several year resolutions compared to annually. Any future change in law requested increases will continue to require a public hearing process and resolution.
This action will allow rates to increase with changes in CPI as outlined in the franchise agreement.
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Based on available data shown in the below table – the City is the second lowest residential/MF solid waste rates in the Inland Empire region.
Table 3
Jursidiction Hauler Residential
2025-2026
Residential
2026-2027
Loma Linda CR&R $29.62 $30.83
San Bernardino Burrtec $27.75 $31.41
Colton CR&R $32.44 $33.51
Moreno Valley Waste Management $33.59 $34.22
Highland Burrtec $34.84 $34.77
Grand Terrace Burrtec $34.72 $3.77
Rialto Burrtec $36.56 $36.62
Rancho Cucamonga Burrtec $34.93 $37.61
Fontana Burrtec $37.63 $37.63
Montclair Burrtec $38.71 $40.06
(Proposed)
San Bernardino
County (CFA-8A)
Burrtec $39.24 $40.57
Pomona City of Pomona $38.93 $40.87
Chino Waste Management $38.82 $41.15
Riverside City of Riverside /
Athens
$39.75 $42.33
Upland Burrtec $39.54 $42.61
Yucaipa Burrtec $43.03 $43.03
Redlands City of Redlands $44.44 $48.44
Ontario City of Ontario $47.70 $51.59
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.
Fiscal Impact
The City receives a franchise fee equal to 20% of Burrtec's Gross Receipts for services provided under the franchise agreement.
There will be an increase in revenues to the General Fund associated with an increase to the Maximum Permissible Service rates for solid waste. 3 0
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Burrtec reported to the City for July, 2025 through June, 2026 a total of $15,582,637.47 in revenue strictly from residential services. In the same period Burrtec reported $31,565,205.65 in total for all other non-residential services. When calculating the franchise fees (20%) paid to the City, the resulting totals are $3,116,527.49 and $6,313,041.13 respectively.
Using the calculated franchise fee revenue from the time period mentioned previously and applying the proposed 13.2% increase for residential and 3.6% to all other services: it is expected the franchise fee revenue paid to the city will increase by $833,321.43 for residential rates and $112,194.99 for all other non-residential, a total increase of $945,516.49. For further clarification of the increase effect demonstrated in the rate, please refer to Table 2.
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 Service 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 2026-131 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 August 1, 2026.
Attachments
1. Resolution 2026-131
2. Proposition 218 Notice w/ Proof of Mailing
3. Table of Proposed Solid Waste Rates 2026-27
4. Burrtec 2016 Franchise Agreement
5. Third Amendment to the Exclusive Franchise Hauler Agreement with Burrtec, Inc.
Ward:
All Wards
Synopsis of Previous Council Actions:
June 17, 2026 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).
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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