As provided for in the franchise agreement, and consistent with the City's obligation to protect the public health and safety by ensuring that solid waste is regularly collected and processed in compliance with state law, the City regularly monitors the fees charged for solid waste collection services to ensure they are adequate to fund this necessary service.

On April 8, 2026, the City received correspondence from its contract solid waste hauler, CR&R Incorporated, requesting increased in the various rates charged for their services. A review of the change in the annual data from Bureau of Labor Statistics (BLS) for calendar year 2025 revealed an increase in Consumer Price Index (CPI) for all urban consumers by 3.28%. In addition, the County of Riverside's Waste Management Department has indicated that they will be adjusting their disposal rate for FY 2026-2027 TO $45.06 per ton.

Therefore, based upon the data supplied by both BLS and the Couty of Riverside, CR&R has prepared a new rate schedule which passes these adjustments through to the various rates.

Based on the current rate structure, the CPI adjustment would result in an increase to the standard single-family residential month rate from $35.61 to approximately 36.78, an increase of approximately $1.17 per month. Similarly for commercial, industrial and multi-family residential refuse service, the typical three cubic yard bin with one pickup per week would increase from $201.31 to approximately $207.91 per month, an increase of approximately $6.60 per month.

All other service rates will be adjusted in accordance with the CPI and applicable disposal cost increases as reflected in the updated rate schedule (Exhibit "A").