HomeMy WebLinkAboutItem No. 12 2023 Annual CPII Refuse Collection Svs CR&R
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REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Remon Habib, City Engineer
Date:June 13, 2023
Subject:2023 Annual Consumer Price Index Increase for Refuse Collection Services
Provided by CR&R
Recommendation
Receive and file this report and the proposed rate increases since the rate increases fall within
the allowable amount per the franchise agreement.
Background
CR&R, Incorporated holds an exclusive franchise in the City of Lake Elsinore to collect and
dispose of refuse and to collect and process recyclables in the City. The franchise contract
specifies that rates be adjusted annually to reflect changes in the Consumer Price Index (CPI)
and any increases in the Riverside County Landfill Fees. Pursuant to the formula established in
the Franchise Agreement, increases in the landfill tipping fee are passed through on a pro-rata
basis effective at the start of the first full billing period after the landfill fee is adjusted. The current
monthly residential rate is $30.58, which includes the Landfill Fee of $3.78.
Discussion
The CR&R requested increase in service rates is based on the data supplied by the Bureau of
Labor Statistics for the 12 months ending March 31, 2023, in which the Consumer Price Index
(CPI) for the Los Angeles, Riverside and Orange County area increased by 2.49%.
In addition, City staff has been notified that the County of Riverside Waste Management
Department will be requesting an increase to the landfill rates this year of 7.33%, increasing the
landfill fees from $35.52 to $38.12 per ton.
Due to the increase in landfill fees and CPI adjustment factors, a monthly rate adjustment will
become effective for residential and commercial accounts. The monthly residential rate will go
from $30.58 per month to $31.55 per month. The commercial rates for fiscal year 2023-2024
reflect the bundled services; per the guidelines from CalRecycle to prepare for the implementation
of SB 1383.
2023 Consumer Price Index Increase
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The new rates are reflected in Exhibit “C” and will become effective July 01, 2023.
Fiscal Impact
No negative fiscal impact to the City. This rate adjustment will result in a slight increase in
franchise revenues to the City.
Attachments
Attachment 1- 2023 Price Adjustment
Exhibit A- 2023 Schedule of Rates Exhibit "C"