Agenda Item: 10
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: November 25, 2025
SUBJECT: FRANCHISED WASTE HAULER ANNUAL RATE ADJUSTMENT DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller
RECOMMENDED ACTION
City Council adopt a resolution approving the annual rate adjustment request for Burrtec Waste Industries, Inc., contingent upon the implementation of Los Angeles County’s proposed residential rate in the unincorporated areas of the Santa Clarita Valley effective January 1, 2026.
BACKGROUND
Burrtec Waste Industries, Inc. (Burrtec), provides solid waste management services to the City of Santa Clarita (City) in accordance with the Agreement for Provision of Garbage, Recyclable Materials, and Organic Waste Collection Services (Agreement) dated July 1, 2023. Per the Agreement, Burrtec retains the exclusive right to provide all solid waste handling services in the City including commercial, single-family, and multi-family properties. The term of the current agreement is ten years, with an expiration date of June 30, 2033.
Annual Rate Adjustment
Per section 6.0 of the Agreement, Burrtec is entitled to an annual rate adjustment, effective January 1, 2026. The rate adjustment is calculated using the percentage change between the 12- month average of the Consumer Price Index for All Urban Consumers (CPI-U) from August 1, 2023, through July 31, 2024, and the 12-month average of the CPI-U from August 1, 2024, through July 31, 2025, not to exceed 4 percent. The requested 2026 annual rate adjustment is
3.10 percent, which is consistent with the rate adjustment formula in the agreement.
For a standard 3-cart bundle, the increase equals $1.16 per month for single-family home waste collection services. The current monthly rate is $37.39, and the new rate, if approved by the City Council, would be $38.55, effective January 1, 2026. For commercial and multi-family properties with a standard 3-yard bin bundle serviced once per week, the increase equals $7.03 per month, adjusting the current rate of $226.80 to a new rate of $233.83 per month. All other
residential and commercial rates will also be adjusted by 3.10 percent, effective January 1, 2026.
Relationship to Unincorporated Los Angeles County Rate
Section 6.04.2 of the Agreement requires that the City’s maximum residential rate remain below all jurisdictions in the Santa Clarita Valley, including unincorporated Los Angeles County (County) areas that have franchised collection services for garbage, recycling, and organics. At this time, the County is still in the process of establishing its new rate, which is expected to take effect January 1, 2026. The County’s current rate for a standard single-family dwelling is $37.49 per month, and its proposed new rate, anticipated to be approved by the Los Angeles County Board of Supervisors on December 9, 2025, is $44.67 per month.
Although the City’s proposed rate of $38.55 per month would temporarily exceed the County’s current rate, it will remain below the County’s new rate on January 1, 2026, when both new rates would take effect, if approved. If the County’s new rate is not implemented on or before January 1, 2026, Burrtec will defer implementation of the new City rate until the County rate is in effect.
The City is presenting this item in advance of the County’s formal action to meet the City’s 30- day customer notification requirement for any rate adjustment. The County does not require a 30-day notice for rate adjustments in the unincorporated Santa Clarita Valley. If the City waited until after the County rate is approved on December 9, the City would be unable to implement the adjustment that Burrtec is entitled to on January 1, 2026.
ALTERNATIVE ACTION
Other action as determined by the Council.
FISCAL IMPACT
None by this action.
ATTACHMENTS
Burrtec Resolution - Third Amendment
Burrtec Request Including Methodology