FROM:
Development Services
SUBJECT:
Hold a Public Hearing and Consider Adoption of Resolution Adopting Increases for Solid Waste Service Charges
Title
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RECOMMENDATION:
Recommendation
1. Hold a Public Hearing on proposed Solid Waste Service Charges; and
2. Approve Resolution No. 2025-045, of the City of Fontana, California Adopting Increases for Solid Waste Service Charges.
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COUNCIL GOALS:
• Enhance the local environment for future generations and create a healthy economic and environmental future by encouraging conservation, waste reduction, and recycling in the community.
• Enhance the local environment for future generations and create a healthy economic and environmental future by promoting programs that encourage reducing Green House Gas emissions.
DISCUSSION:
Pursuant to the Integrated Solid Waste Agreement (Franchise Agreement) between the City of Fontana (City) and Burrtec Waste Industries, Inc. (Burrtec), Burrtec may annually apply for a rate adjustment and supply evidence to the City to support said adjustment. The Franchise Agreement provides for increases in Solid Waste Service rates due to the increase in (a) disposal fees at San Bernardino County landfills (so-called “tipping fees”), (b) recyclables and organics processing costs, and (c) the annual inflationary increases. If the Resolution is approved by the City Council, the solid waste rate increases will take effect July 1, 2025.
The proposed increases will also allow for future automatic increases commencing on July 1, 2026, through and including July 1, 2029, as follows:
• CPI Adjustment: The proposed maximum rates for Solid Waste Services in Exhibit A of the Resolution shall account for inflation, subject to a 6% cap on Maximum Permitted Service Rates. Beginning July 1, 2026, and each July 1 thereafter, through and including July 1, 2029, the then-current Maximum Permitted Service Rates will be adjusted by annual percentage change in the All Urbans Consumer Index (CPI-U), Riverside-San Bernardino-Ontario, CA, as published by the U.S. Department of Labor, Bureau of Statistics.
• Tipping Fees: Beginning July 1, 2026, and each July 1 thereafter, through and including July 1, 2029, the then-current Maximum Permitted Service Rates will be annually adjusted for changes in tipping or gate fees charged by the landfill based on the percentage increase in the tipping fees applied to the maximum rates.
• Processing Fees: For the fiscal year beginning July 1, 2026, and annually thereafter on July 1 through and including July 1, 2029, the then-current Maximum Permitted Service Rates will be annually adjusted for changes in processing fees charged by any material recovery facility or processing facility that receives and processes waste generated in Fontana.
Residential Rates:
The proposed rate for residential service will increase from $36.15 per month to $37.63 per month. The senior citizen discounted rate will increase from $28.92 per month to $30.10 per month. Residents that are 60 years or older qualify for the senior discount.
Commercial Rates:
In addition to their residential service rates, Burrtec is also requesting adjustments to their commercial service rates. For example, a 3-yard bin for trash, serviced once per week, will change from $233.28 to $239.35.
Proposition 218 Procedures
A notice was mailed to property owners and tenants receiving solid waste services regarding the public hearing and proposed solid waste rate increases pursuant to Proposition 218 at least 45 days before the hearing.
Staff is recommending the City Council conduct a Public Hearing to hear and consider all information, including all protests and objections concerning the proposed increase, and to consider adoption of the proposed solid waste rates. If at the close of the Public Hearing, the City Council does not receive a majority protest (i.e., written protests from 50% plus 1 of parcels affected by the proposed rate increase), the City Council may approve the proposed Resolution adopting the solid waste rate increases effective July 1, 2025.
The City is conducting this Proposition 218 majority protest proceeding out of an abundance of caution and without conceding the applicability of Proposition 218 to Solid Waste Service.
FISCAL IMPACT:
The financial impact associated with the approval of this item is an estimated increase in revenue to the City of $225,000 in franchise fee revenue and household hazardous waste collections for fiscal year 2025-26.
MOTION:
Approve staff recommendation