April 7, 2026
TO: City Council
REQUESTED BY: Kimberly Ganimian, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Notice of Public Hearing for Proposed Solid Waste Rate Adjustments (Prop 218)
RECOMMENDATION:
Staff recommends that the City Council:
1. Approve and adopt Resolution No. 4116, declaring its intention to approve proposed solid waste rate adjustments; and
2. Give notice and set a Public Hearing for June 2, 2026, in accordance with Proposition 218 requirements; and
3. Direct staff to return following the Public Hearing with the proposed Sixth Amendment to the Franchise Agreement between the City of San Jacinto and CR&R Incorporated, incorporating the updated rate schedule, for City Council consideration.
BACKGROUND:
The City of San Jacinto maintains an exclusive Franchise Agreement with CR&R Incorporated for the collection, transportation, recycling, and disposal of solid waste, recyclables, and organic waste within the City. The original agreement was approved in 2005 and has been subsequently amended to address regulatory requirements, service enhancements, and rate adjustments.
The Franchise Agreement establishes a methodology for annual rate adjustments based on the Consumer Price Index (CPI-U) for Riverside-San Bernardino-Ontario, landfill tipping fees, and commercial organic rates. These provisions are intended to ensure that service levels are maintained while reflecting changes in the cost of providing service.
The most recent amendment to the agreement was adopted in 2022 to address State-mandated organic waste collection requirements under SB 1383. The proposed Sixth Amendment would implement updated rates consistent with the agreement’s rate adjustment provisions.
DISCUSSION:
CR&R has submitted a request for a rate adjustment for Fiscal Year 2026–2027 consistent with the Franchise Agreement. The requested adjustment reflects a 3.28% increase in CPI based on U.S. Bureau of Labor Statistics data and a 2.94% increase in landfill disposal costs as provided by the Riverside County Department of Waste Resources. The proposed increases are applied in accordance with the rate adjustment methodology established in the Franchise Agreement and are passed through to the various service rates.
The standard single-family residential rate is proposed to increase from $32.92 per month to $34.19 per month. Other service categories, including commercial services, temporary services, and ancillary fees, are also adjusted as reflected in the attached rate schedules.
CR&R has also proposed a Tax Roll Administration Fee of $65.00 per account to offset costs associated with administering delinquent accounts placed on the tax roll.
Solid waste collection rates are subject to Proposition 218. Adoption of Resolution No. 4116 will initiate the required noticing and hearing process and set the public hearing date for June 2, 2026.
This action does not approve or implement any rate increases at this time. No new rates or fees will take effect unless and until the City Council considers and approves them following the Public Hearing.
At the Public Hearing, residents, property owners, and members of the business community will have the opportunity to provide comments on the proposed rate adjustments and submit written protests.
Following the Public Hearing, staff will return to the City Council with the proposed Sixth Amendment to the Franchise Agreement and updated rate schedule for consideration.
FISCAL IMPACT:
There is no direct impact to the City’s General Fund. Solid waste services are funded through user fees paid by ratepayers in accordance with the Franchise Agreement. The proposed rate adjustments are intended to reflect increases in the cost of providing solid waste services and to maintain compliance with State regulatory requirements; however, no fiscal impact will occur unless the rates are approved following the Public Hearing.
ATTACHMENTS:
Resolution No. 4116