City Council

12A. REVIEW AND APPROVE THE DRAFT PROPOSITION 218 PUBLIC HEARING NOTICE\nREGARDING PROPOSED RATE INCREASES TO SOLID WASTE SERVICES\nThe City of Stanton has an exclusive franchise with CR&R, Inc. (“CR&R”) for the\ncollection, disposal, recycling, and processing of solid waste, green waste, food scrap\nwaste, and recycling within the City. CR&R is proposing to increase the rates it charges\nfor the collection and handling of solid waste within the City to account for annual\ninflationary rate increases and increased landfill tipping fees imposed by OC Waste &\nRecycling.\nThe franchise agreement establishes a process for adjusting the rates that CR&R charges\nratepayers in the City for the solid waste services it provides. The agreement provides\nthat the rates that CR&R charges shall be adjusted each year for inflationary increases.\nConsequently, the solid waste fees are proposed to be adjusted based on the annual\npercentage change in the Consumer Price Index (“CPI”) for the Los Angeles-Long Beach-\nAnaheim metropolitan area beginning September 1, 2027, and each September 1\nthereafter through and including September 1, 2030. However, the City’s franchise\nagreement with CR&R ensures that such CPI increases shall not exceed the median of\nrates for similar services in 13 nearby North County cities.\nThe franchise agreement also provides that the rates charged by CR&R may be adjusted\nfor other extraordinary costs, including extraordinary changes in the tipping fee charged\nby a landfill owned or operated by the County of Orange.\nBeginning in July 2026, OC Waste & Recycling will begin an 85% increase in landfill\ntipping fees phased in over a 3-year period. The current tipping fee of $43.76 per ton will\nbe increased to $67.00 per ton effective July 1, 2026. Thereafter, the tipping fee will\nincrease to $74.00 per ton on July 1, 2027, and then to $81.00 per ton on July 1, 2028.\nAs such, the solid waste fees are proposed to be adjusted to pass through the increase\nin tipping fees. Further, each September 1 thereafter, through and including September\n1, 2030, the then-current solid waste service fees are proposed to be adjusted annually\nbased on the City’s agreement with the County of Orange for CPI adjustments. 60% of\nthe increase shall be comprised of the CPI published by the Bureau of Labor Statistics\nfor all Urban Consumers: Water and Sewer and Trash Collection Services in U.S. City\nAverage (CUSR0000EHG). The remaining 40% of the increase shall be comprised of the\nCPI for All Urban Consumers, not seasonally adjusted, all items index – all items in Los\nAngeles-Long Beach-Anaheim (CUURS49ASA0).\nRECOMMENDED ACTION:\n1. City Council find that the recommended actions are exempt from CEQA per\nSection15378(b)(5) [Project does not include]: organizational or administrative\nactivities of governments that will not result in direct or indirect physical changes in\nthe environment; and\n2. It is recommended that the City Council review and approve the draft Proposition 218\npublic hearing notice regarding the proposed rate increases for solid waste services.