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HomeMy WebLinkAboutItem 12 - Republic Services Related to Waste Infrastructure System Enterprise Agreement with County of Orange Public Works Agency www.santa-ana.org/pw Item # 12 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 7, 2026 TOPIC: Memorandum of Understanding with Republic Services Related to Waste Infrastructure System Enterprise Agreement with County of Orange AGENDA TITLE Memorandum of Understanding with Republic Services Related to Waste Infrastructure System Enterprise Agreement with County of Orange (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute a Memorandum of Understanding with Republic Services to formalize the refuse rate stabilization plan associated with the County of Orange Waste Infrastructure System Enterprise agreement for FY 2026-27 (Agreement No. A-2026-XXX). GOVERNMENT CODE §84308 APPLIES: Yes BACKGROUND & DISCUSSION On January 27, 2026, the Orange County Board of Supervisors (the "County") adopted a new Waste Infrastructure System Enterprise (WISE) Agreement, establishing updated regional rates for municipal solid waste disposal at County landfills. The agreement introduces a phased increase in landfill disposal rates beginning July 1, 2026, thereby increasing the City's cost of providing solid waste services. While landfill disposal costs have increased, the WISE agreement remains the most cost-effective landfill alternative due to the County's control of the regional landfill system and overall higher costs of feasible alternatives. To address the adopted changes made by the County, on April 21, 2026, the City Council approved the WISE agreement with the County and directed staff to implement a one-year rate stabilization strategy to manage and address the financial impacts of the new rates. This approach utilizes available reserves in the City's Refuse Enterprise Fund to offset disposal cost increases for residential, multi-family, and commercial customers, preventing the immediate pass-through of the WISE agreement related costs during the one-year period. This one-year measure will allow time for the City to complete the Proposition 218 regulatory compliant process in order to implement a new Memorandum of Understanding with Republic Services Related to Waste Infrastructure System Enterprise Agreement with County of Orange July 7, 2026 Page 2 rate structure, aligning the City's costs for providing solid waste disposal services caused by the increases adopted by the County. The proposed Rate Stabilization Memorandum of Understanding (MOU) with Republic Services (Exhibit 1) will facilitate the implementation of the City's rate stabilization strategy and formalizes the financial arrangement between the City and Republic Services for Fiscal Year 2026-27. The MOU maintains existing Franchise Agreement provisions, including applicable fees and adjustments, while introducing a rate stabilization approach to address increased landfill disposal costs resulting from the WISE Agreement. The use of Refuse Enterprise Fund resources is limited to eligible landfill disposal-related costs and is intended as a temporary measure through June 30, 2027. Approval of the MOU will allow time for the City to complete the Proposition 218 process and establish a long-term refuse rate structure that reflects the increased disposal costs under the new WISE Agreement. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT As discussed in the April 21, 2026 staff report, the WISE Agreement increases the landfill disposal rates charged by the County beginning July 1, 2026. The City will reimburse Republic Services for the increased disposal costs as part of the approved rate stabilization strategy. The estimated annualized financial impact of the increased landfill disposal rates is approximately $6.8 million. The FY 2026-27 adopted budget includes $3.4 million, representing approximately six months of the estimated annualized cost and providing adequate time for the City to process and implement a new rate structure during FY 2026-27. No additional appropriation is being requested at this time. Staff will continue to monitor funding needs throughout the fiscal year, and any additional funding requirements will be presented to the City Council for consideration and appropriation at a later date. Accounting Fiscal Unit—Account Fund Accounting Unit, Amount Year No. Description Account Description Project No. CURRENT BUDGET Refuse Refuse Collection 2026-27 06917640- Collection Service, Contract $3,400,000 62300 Service Services - Professional Memorandum of Understanding with Republic Services Related to Waste Infrastructure System Enterprise Agreement with County of Orange July 7, 2026 Page 3 TOTAL I $3,400,000 EXHIBIT(S) 1. Memorandum of Understanding with Republic Services Submitted By: Rodolfo Rosas, P.E., Acting Executive Director of Public Works Agency Approved By: Alvaro Nunez, City Manager Exhibit 1 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SANTA ANA AND REPUBLIC SERVICES REGARDING FISCAL YEAR 202612027 RATE STABILIZATION REIMBURSEMENT This Memorandum of Understanding ("MOU") is entered into on this 7th day of July, 2026 by and between the City of Santa Ana, a charter city and municipal corporation ("City")and Republic Waste Services of Southern California, LLC dba Republic Services ("Republic"). SECTION I. RECITALS A. The City and Republic entered into an agreement entitled "Agreement Between City of Santa Ana and Republic Waste Services of Southern California, LLC DBA Republic Services for Collection and Handling of Solid Waste Generated, Produced and/or Accumulated in the City of Santa Ana" (A-2021-171) dated. August 17, 2021 (the "Franchise Agreement"). The Franchise Agreement remains active in full force and effect. B. The County of Orange, through Orange County Waste & Recycling (OCWR), operates the County-owned landfill system, including three active landfills and approximately 20 inactive sites. Since 1997, Orange County cities have participated in the Waste Disposal Agreement (WDA), which provided guaranteed landfill capacity and disposal rates of at least 10% below noncontract customers. The WDA has been amended several times, in 2004, 2009, 2015 and most recently for a one-year extension in 2025. As the WDA neared expiration, OCWR developed the successor Waste Infrastructure System Enterprise (WISE)Agreement. C. The WISE agreement increases OCWR landfill disposal tonnage rates to address funding gaps for landfill closures, capacity expansions, and rising operational costs the current annual Consumer Price index (CPI) adjustments do not cover. D. The City of Santa Ana approved the WISE agreement on April 21, 2026. Republic executed an acknowledgment regarding the WISE agreement on April 30, 2026.The increased WISE rates will go into effect beginning July 1, 2026. E. To mitigate the impact of the first year of City's collection rate increases resulting from OCWR's WISE disposal rate increases, the City will use reserves from its Refuse Enterprise Fund to pay Republic and offset the WISE rate impact for residential, commercial, and multi-family rates for Fiscal Year (FY) 2026/2027. SECTION ll. PURPOSE The purpose of this Memorandum of Understanding (MOU) is to memorialize the Page 'I of 11 agreement between the City and Republic regarding the refuse rate stabilization payments from the City to Republic for Fiscal Year (FY) 2026/2027. This MOU will address rate stabilization reimbursement methodology, timing of invoicing to the City, terms of payment, methodologies to calculate the rate stabilization reimbursement by collection sector, and the methodology to calculate franchise fee remittances to City for commercial rate stabilization payments for subsidization of OCW R landfill tonnage rate increases and the preservation of existing Article 3 franchise fees.The purpose of the City's use of reserves is to stabilize rates for residential and commercial customers and to ensure that Republic is fully compensated in accordance with the requirements of the Franchise Agreement for services provided to customers. This MOU does not formally amend or supersede the existing Franchise Agreement (A- 2021-171) between the Parties, which remains in full force and effect. To the extent any portion of this MOU supplements existing relationship between the Parties, such provisions shall remain applicable during the term of this MOU only. The Parties hereby agree that any new customer rates adopted following this MOU will (1) be subject to the full requirements of Proposition 218 (California Constitution Article XIIID and Govt. Code §§ 53750 et seq.); and (2) be calculated utilizing the cumulative adjusted rates of the existing Franchise Agreement, WISE Agreement adjustments including the compensation provided by this MOU, as well as all other relevant and legally required factors. SECTION Ill.TERM The term of this MOU shall commence on July 1, 2026, and shall expire on June 30, 2027, unless terminated earlier in accordance with the terms of this MOU. To the extent this MOU is formally executed after July 1, 2026, the Parties intend and hereby agree that this MOU shall apply retroactively to July 1, 2026 for purposes of invoicing and payment, described herein. The Parties may extend this MOU by mutual written agreement and the approval of the Santa Ana City Council. SECTION IV. ARTICLE 3 PROVISIONS For the term of this MOU, all provisions within Article 3 of the Franchise Agreement shall remain in effect under "status quo" conditions. This includes the Section 3.1 Franchise Fee, maintained at the greater of$8,000,000 or 17.9% of Gross Receipts, for Customers direct-billed by Republic. Furthermore, the City and Republic agree to the continued application of annual CPI adjustments for the NPDES Fee (Section 3.2), Vehicle Impact Fee (Section 3.3), Administrative Fee (Section 3.4) and the Clean Business Initiative Program, (Section 3.7). Page 2 of 11 SECTION V. RATE STABILIZATION ENTERPRISE FUND To mitigate the impact of rate increases resulting from ©CWR landfill tonnage costs, the City will establish a Rate Stabilization allocation under the Refuse Enterprise Fund using the existing fund balance. For FY 2026/2027, the City will utilize this allocation offset all residential, multi-family, and commercial small container rate increases associated with the increase in landfill disposal fees. The City confirms that the Refuse Enterprise Fund maintains a sufficient balance to cover these specific costs without impacting existing service levels. City and Republic hereby agree to the following rate stabilization methodologies: A. Residential Curbside Service — Rate Stabilization Reimbursement Calculation Methodology 1. The City will reimburse Republic on a $21.07 per-ton basis on all residential curbside service landfilled tons collected from residential customers within the City of Santa Ana. This curbside service reimbursement rate is calculated based on the difference between the FY 2026/2027 WISE disposal fee of $67.00 and a disposal fee of $45.93 that reflects a 4.95% adjustment of the current disposal fee ($43.76 through June 30, 2026). The 4.95% adjustment of the current disposal fee was calculated using the average of the past 4-years of CPI adjustments published by OC Waste and Recycling. (See Exhibit A, Table 1, attached hereto, for full discussion and calculation of referenced rates.) 2. Franchise fees shall not apply to the residential curbside service rate stabilization reimbursement calculation. 3. Republic will invoice the City monthly on or before the 121h business day of the month following the billing period. 4. The invoice will include the total residential curbside service landfilled tons that were generated by customers within the City of Santa Ana for the month multiplied by $21.07 to calculate the total amount payable by the City to Republic for that billing period. 5. The City will pay Republic within 30 days of receipt of the invoice. 6. The City anticipates the rate stabilization amount for the residential sector for FY 2026/2027 will be approximately$1.6 million based on tonnage projections. The parties agree that this amount is an estimate and the actual landfilled residential tonnage during FY 2026/2027 and the actual rate stabilization reimbursement paid by Page 3 of 11 the City to Republic may be less, or more,than this amount. B. Residential, Multi-Family, and Commercial Bin Service — Rate Stabilization Reimbursement Calculation Methodology 1. The City will reimburse Republic for the difference between the fully adjusted WISE disposal component and the disposal component that reflects the disposal fee with a 4.95% increase for the residential, multi-family, and commercial bin service collection revenue.The rate stabilization reimbursement will be calculated by applying the difference between (1)the WISE disposal fee increase percentage plus CPI service adjustments and PPI fuel percentage adjustments as described in Article 6.4.3 of the Franchise Agreement (calculations shown in Formula 1 below); and (2) the application of 4.95% on the current landfill disposal fee (i.e. the 4-year average of CPI adjustments from OCW&R shown in Exhibit A, Table 1) plus CPI service percentage adjustments and PPI fuel percentage adjustment as described in Article 6.4.3 of the Franchise Agreement (calculated as Formula 2 below). The difference between these two percentage values (Formula 3 below)shall be multiplied by gross commercial and multifamily bin rate receipts for the month of the billing period. These 3 calculations are described below. a. Formula 1: Contractual Inflation Adjustment with Full WISE Impact. Calculate the total inflation adjustment for residential, multi-family, and commercial bin service using the finalized CPI adjustments,as prescribed by Article 6.4.3 of the Franchise Agreement. Using the CPI adjustments for the service component (2.84%), the actual adjustment for CCW&R landfill disposal fees (53.11%), and fuel PPI adjustments (10.04%), the weighted increase with full WISE impact is 11.69%. (See Exhibit A,Table 2,for details supporting the calculation of this value.) b. Formula 2: Contractual Inflation Adjustment with Reduced WISE Impact. Calculate the total inflation adjustment for residential, multi-family, and commercial bin service using the finalized CPI adjustments, as prescribed by Article 6.4.3 of the Franchise Agreement. Using the CPI adjustments for the service component (2.84%), the 4-year average CPI adjustments for CCW&R landfill disposal fees (4.95%), and fuel PPI adjustments (10.04%), the weighted increase with the reduced WISE impact is 3.54%. (See Exhibit A, Table 3, for details supporting calculation of this value.) c. Formula 3. Residential, Multi-Family, and Commercial Bin Service Rate Stabilization Coefficient.To calculate the residential, multi-family, and commercial bin service rate stabilization coefficient to be multiplied by the total gross residential, multi-family, and commercial bin service rate receipts per month, the difference between Formula 1 (11.69%) and Formula 2 Page 4 of 11 (3.54%) of 8.15% shall be used. 2. The residential, multi-family, and commercial bin service rate stabilization coefficient calculated in Formula 3 will be applied to the gross residential, multi- family, and commercial bin service revenue receipts each month for all residential, multi-family, and commercial bin service lines (i.e. 1-cubic yard container up to 6-cubic yard on scheduled service for refuse, recycling, and organics service). a. The City will fund the residential, multi-family, and commercial bin service rate stabilization reimbursement. Republic shall itemize all franchise fees applicable to the residential, multi-family, and commercial bin service rate stabilization reimbursement and remit 17.9% of the residential, multi-family, and commercial bin service rate stabilization reimbursement amount to the City monthly via the existing franchise fee payment process. Example Calculation (for illustrative purposes only) ■ Gross residential, multi-family, and commercial bin rate receipts for month: $4,000,000.00 • Residential, multi-family, and commercial bin rate stabilization coefficient: 8.15% ■ Total rate stabilization reimbursement paid by City to Republic ■ $4,000,000.00 x 0.0815 = $326,000.00 ■ Calculation of franchise fees for remittance by Republic to City • Franchise fee = 17.9% • Rate stabilization reimbursement paid by City to Republic: $326,000.00 ■ Total rate franchise fee remittance paid by Republic to City • $326,000.00 x 0.179 = $58,354.00 3. The City anticipates the rate stabilization amount for the commercial sector for FY 2026/2027 will be approximately $4.5 million based on current service levels. C.Commercial Cart Ser►rice - Rate Stabilization Reimbursement Calculation Methodology 1. The City will reimburse Republic for the difference between the fully adjusted WISE disposal component and the disposal component that reflects the disposal fee with a 4.95% increase for the commercial cart collection revenue. The rate stabilization reimbursement will be calculated by applying the difference between (1)the WISE disposal fee increase percentage plus CPI service adjustments and PPI fuel Page 5 of 11 percentage adjustments as described in Article 6.4.3 of the Franchise Agreement (calculations shown in Formula 1 below); and (2) the application of 4.95% on the current landfill disposal fee (i.e. the 4-year average of CPI adjustments from OCW&R shown in Table 1 above) plus CPI service percentage adjustments and PPI fuel percentage adjustment as described in Article 6.4.3 of the Franchise Agreement (calculated as Formula 2 below). The difference between these two percentage values (Formula 3 below) shall be multiplied by gross commercial and multifamily cart rate receipts for the month of the billing period. a. Formula 1: Contractual Inflation Adjustment with Full WISE Impact. Calculate the total inflation adjustment for commercial cart services using the finalized CPI adjustments, as prescribed by Article 6.4.3 of the Franchise Agreement. Using the CPI adjustments for the service component (2.84%), the actual adjustment for OCW&R landfill disposal fees (53.11%), and fuel PPI adjustments (10.04%n), the weighted increase with full WISE impact is 14.71%. (See Exhibit A, Table 4, for detail supporting the calculation of this value.) b. Formula 2: Contractual Inflation Adjustment with Reduced WISE Impact. Calculate the total inflation adjustment for commercial cart services using the finalized CPI and PPI adjustments, as prescribed by Article 6.4.3 of the Franchise Agreement. Using the CPI adjustments for the service component (2.84%), the 4-year average CPI adjustments for OCW&R landfill disposal fees (4.95%), and fuel PPI adjustments (10.04%®), the weighted increase with the reduced WISE impact is 3.67%. (See Exhibit A, Table 5, for details supporting calculation of this value.) c. Formula 3.Commercial Cart Service Rate Stabilization Coefficient.To calculate the commercial cart service rate stabilization coefficient to be multiplied by the total gross commercial cart service rate receipts per month, the difference between Formula 1 (14.71%) and Formula 2 (3.67%4) of 11 .04% shall be used. 2. The commercial cart service rate stabilization coefficient calculated in Formula 3 will be applied to the gross commercial cart service revenue receipts each month for all commercial cart service lines (i.e. 35-gallon up to 96-gallon on scheduled service for refuse, recycling, and organics service). 3. The City will fully fund the commercial cart service rate stabilization reimbursement. Republic shall itemize all franchise fees applicable to the commercial cart service rate stabilization reimbursement and remit 17.9% of the commercial cart service rate stabilization reimbursement amount to the City monthly via the existing franchise fee payment process. a. Example calculation (for illustrative purposes only) — Commercial Cart Services: Page 6of11 ■ Gross commercial cart service rate receipts for month: $1,000,000.00 ■ Commercial cart service rate stabilization coefficient: 11.04% ■ Total rate stabilization reimbursement paid by City to Republic 0 $1,000,000.00 x 0.1104 = $110,400.00 ■ Calculation of franchise fees for remittance by Republic to City • Franchise fee = 17.9% • Rate stabilization reimbursement paid by City to Republic: $110,400.00 • Total rate franchise fee remittance paid by Republic to City 0 $110,400.00 x 0.179 = $19,761.60 SECTION VI. PAYMENT STRUCTURE AND INVOICING For the duration of the 2026/2027 Rate Year (July 1, 2026, through June 30, 2027), the City shall remit the Rate Stabilization Fee to Republic in twelve monthly installments by the 30th of the month following the billing period (i.e. August 30, 2026, for the July 2026 Rate Stabilization Reimbursement invoice). To facilitate these payments, Republic is required to submit a monthly Rate Stabilization Reimbursement Invoice by the 12t' business day of the month following the billing period. A. Invoice Requirements Residential and Commercial invoices submitted to the City shall be substantially in the form of the invoices attached as Exhibit "B". Republic shall calculate the franchise fee amounts that are excluded from the commercial and multi-family rate stabilization amounts payable by the City. B. Payment and Calculation The City shall remit the Rate Stabilization Fee to Republic in twelve monthly installments by the 30th of the month following the billing period (i.e. August 30, 2026, for the July 2026 Rate Stabilization Reimbursement invoice). If the City identifies any miscalculations or calculations that it believes do not conform with the protocols included in this MOO, the City will notify Republic within 5 business days of receipt. Republic shall have 10 business days to address the issues identified by the City and resubmit the invoice to City. SECTION VII. LIMITATIONS OF THE STABILIZATION FUND The use of the Rate Stabilization Fund is governed by specific criteria to ensure fiscal accountability. Primarily, the fund is restricted to addressing the cost difference between the standard CPI rate adjustment for FY 2026/2027 and the increased tonnage fees at the WISE landfill. Eligibility for these rate stabilization reimbursement payments made to Page 7 of 11 Republic is strictly limited to residential, commercial, and multi-family accounts. Furthermore, these funds are dedicated exclusively to covering the specified tonnage service costs and may not be reallocated to cover other operational expenses or to offset unrelated fees. SECTION Vlll. RECORDS AND ACCESS For all records relating to the subject matter of this MOU, Republic shall provide City with all necessary access to review, verify or audit the contents thereof as prescribed under the Franchise Agreement. SECTION IX. WAIVER As consideration for the City's implementation of this MOU and payment of rate stabilization reimbursements as outlined therein, Republic waives the right to seek any further rate adjustments under the Franchise Agreement during the term of this MOU. SECTION X. TERMINATION City reserves the right to terminate this MOU upon thirty (30) days written notice upon the showing of a material and adverse or change in circumstances, including but not limited to: reduction or elimination of required funding, changes in applicable laws or regulations governing the subject matter of this MOU. In the event of termination under this Section, Republic shall be entitled to full payment for all covered services rendered up to the effective date of termination. SECTION A. LIABILITY, INDEMNIFICATION, & INSURANCE A. Incorporation of Existing Provisions. The Parties mutually acknowledge and agree that this MOU does not alter, diminish, waive, or otherwise modify Republic's obligations regarding liability, defense, indemnification, and insurance as set forth in the Franchise Agreement, specifically including but not limited to Article 9. All such provisions remain in full force and effect. B.Application to this MOU All operations conducted, actions taken, and funds received by the Parties in connection with this MOU shall be deemed to fall within the scope of the Franchise Agreement for the purposes of liability, indemnity, and insurance. C. No Assumption of Liability by Agency The City's sole obligation under this MOU is the payment of the Rate Stabilization Reimbursement funds as expressly detailed above. City assumes no operational, financial, or legal liability for Republic's general business operations, workforce management, or the other operations as discussed in this MOU. City's participation in this MOU shall not be construed as an assumption of risk, a partnership, or a joint Page 8 of 11 venture, nor does it relieve Republic of its independent obligations to manage its operational risks and liabilities. D. Maintenance of Insurance Coverage Republic represents and warrants that all insurance policies and coverages required by the Franchise Agreement are currently active, in full force and effect, and shall remain in compliance with the Franchise Agreement throughout the term of this MOU. Republic shall ensure that City remains properly endorsed as an additional insured on all applicable policies for the duration of this MOU. Any lapse in required insurance coverage shall constitute an immediate material breach of both the Existing Agreement and this MOU, entitling City to immediately withhold any pending or future payments. SECTION XII. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this MOU shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: City Clerk City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax: 714-647-6956 With courtesy copies to: Executive Director, Public Works Agency City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702 To Republic: Republic Waste Services of Southern California, LLC Attn: General Manager 1800 S Grand Ave. Santa Ana, CA 92705 Page 9 of 11 Email. A®eitch@republicservices.com A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four(24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. SECTION 7[I11. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this MOU, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. This MOU has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this MOU shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this MOU. {Signature Page Follows} Page 10 of 11 IN WITNESS WHEREOF, the parties have executed this Memorandum of Understanding as of the date noted above. ATTEST: CITY OF SANTA ANA JENNIFER L. HALL ALVARO NUNEZ City Clerk City Manager APPROVED AS TO FORM: REPUBLIC WASTE SERVICES OF SOUTHERN SONIA R. CARVALHO CALIFORNIA, LLC: City Attorney C Kyle Nellesen Anthony D Assistant City Attorney General an er RECOMMENDED FOR APPROVAL: 4 L� Rodolfo Rocac(jilp 29 9096 14-14-In Pn Rodolfo Rosas, P.E. Acting Executive Director Public Works Agency Page 11 of 11 EXHIBIT A Table 1:4-year Average OCW&R Disposal Fee Increases Percent Fiscal Year Disposal Fee at OCW&R Increase 2022/23 $38.34 6.20% 2023/24 $41.31 7.75% 2024/2S $42.65 3.24% 2025/26 $43.76 2.60% Four-year Average 4.95% Calculation of Disposal Fee with 4-year Average Inflation Adjustment: Current Disposal Fee at OC Landfills(effective through 6/30/2026): $43.76 Landfill Disposal Fee Ado ustedby 4.95%:$43.76 x 1.0495 =$45.93 Table 2: Contractual Calculation of Inflation Adjustment with Full WISE. Impact- Residential, Multi-Family, and Commercial Bin Service Step One: Calculate Percentage Change in Indices A 6 C Adjustment Percent Change in Row Factor Index Old Index Value New Index Value Index((Column B/Column A)-1) 1 Service (1) 318.983 328.036 2.8406 2 Fuel (2) 255.608 281.282 10.04% 3 ❑isposal (3) $43.76 $67.00 53.11% Step Two: Determine Weighted Increase D E F Adjustment Cost Component Weighted as a%of Percent Change in Index Total Weighted Row Factor Index Component Total(4) (from Column Cl Change(Column D x Column E) 4 Service (1) 78.25% 2.84% 2.22% 5 Fuel (2) 4.83% 10.04% 0.48% 6 Disposal (3) 16.92% 1 53.11% 8.99% 7 Total 100.00% 11.69% 9 Total Adjustment with Additional Adjustment 11•6g% Table 3: Contractual Calculation of Inflation Adjustment with Reduced WISE Impact- Residential, Multi-Family, and Commercial Bin Service Step One: Calculate Percentage Change in Indices A B C Percent Change in Row Adjustment Index Old Index Value New Index Value Index((Column Factor B/Column A)-1) 1 Service (1) 318.983 328.036 2.84% 2 Fuel (2) 1 255.608 281.282 1 10.04% 3 Disposal (3) $ 43.76 $ 45.93 4.95'l0 Step Two: Determine Weighted Increase D E F Adjustment Cost Component Weighted as a%of Percent Change in Index Total Weighted Row Factor Index Component Total(4) (from Column CI Change(Column D x Column E) 4 Service (1) 78.25% 2.84% 2.22% 5 Fuel (2) 4.83% 10.04% 1 0.48% 6 Disposal (3) 16.92% 4.95% 0.84% 7 Total 100.00% 3.54% 9 Total Adjustment with Additional Adjustment 3.54% Table 4: Contractual Calculation of Inflation Adjustment with Full WISE Impact- Commercial Cart Service Step One: Calculate Percentage Change in Indices A B c Percent Change Row Adjustment Factor Index Old Index Value New Index Value in Index((Column B/Column A)-1) 1 Service (1) 319.983 328.036 2.84% 2 Fuel (2) 255.609 281.282 10.04% 3 isposal (3) $43.7 $67-00 53.11% Step Two: Determine Weighted Increase D E F Cost Component Weighted as a% Percent Change in Index Total Weighted Row Adjustment Factor Index of Component Total(4) (from Column C) Change(Column D x Column E) 4 Service (1) 72.25% 2.84% 2.05% 5 Fuel (2) 4.84% 10.04% 0.49% 6 Disposal (3) 22.91% 53.11%a 12.17% 7 Total 100.01 14.71% 9 Total Adjustment with Additional Adjustment 14.71% Table 5: Contractual Calculation of Inflation Adjustment with Reduced WISE Impact- Commercial Cart Service Step One: Calculate Percentage Change in Indices A B C Adjustment Percent Change in Row Factor Index Old Index Value New index Value Index((Column BJColumn A)-1) 1 Service (1) 318.983 328.036 2.84% 2 Fuel 1 (2) 255.608 1 281.282 10.04% 3 Disposal (3) $43.75 $45.93 4.95% Step Two: Determine Weighted Increase D E F Adjustment Cost Component Weighted as a% Percent Change in Index Total weighted Row Factor Index of Component Total(4) (from Column C) Change(Column D x Column E) 4 Service (1) 72.25% 1 2.84% 2.05% 5 Fuel (2) 4.84% 10.04% 0.49% 6 Disposal (3) 22.91% 4.95°% 1.13% 7 Total 100.0% 3.67% 9 Total Adjustment with Additional Adjustment 3.67% EXHIBIT "B" (Sample Invoice) REPUBLIC SERVICES CITY OF SANTAANA RATE STABILl.ATION REIMBURSEF'ENT INVOICE RepublicSeMces INVOICE PERIOD 1800 S.Grand Ave. Aprit-2026 Santa Ana.CA 92705 Line.ltern A 'Line Item Description I InvoiceCharges fro mCommercialCartSenricekcounts $ 413,335.25 2 Rate StabIlizationReimbursementAmounI for Cammerclal Cart service Accounts(11.44%ofbne1) $ 45.632.21 3 Invoice Charges from Residential,Multi-Family and Cc m mercial Bin Service Accou nts $ 3,S41,491.49 4RateStablizalIonBeimbursemen%Amount for Res Identiat,Mutti-Family andCommercial8inServlceAccounts(8,15%of Line3) $ 321,231,56 5 Total La ndt i Red Tonnage fro m Res i d e nl ial Ac counts 6.438.67 6 Rate StabillzationRe1rnbursement Amount torResidentiatAecounts($21.o7honmlti ply byI!ne5) $ 135,687.76 7 Total Rate Stabilization Reimbursement Due to Republic Services,Inc. $ 502,551.53 (line 2..line 4 t line 6) 8 Gross receipts fro mCornmerciat Rate StabalizationReImbursement S 366.663.77 9 Franchi5e Fee AmounttorCommerc[al Rate Stababza[ion Reimburserrlenti17.9%ofiine81 S 65,668.61 10 Total Franchise Fees for Rate Stabilization Reimbursement Due to the City of Santa Ana 5 65,668.61 I declare,under penaltyof perjury,that the foregoingis true and correct to the best of my knowledge and belief. CITY OF SANTA ANA SUMMARY REPORT By Line of Business DescripWn JAN FEB MAR APR MAY JUN JUL AUG SFP OCT Tons Hauled Residential Single Family 9.981.83 8,446,79 9,909.50 9.517.85 ❑.00 0.00 0.00 0.00 0.00 0. Commercial&Multi-Farnity 11,000A7 10,063.74 10,573.17 10,375.33 0.00 0.00 0,00 0.00 0.00 0. -Rolloff I industrial 2,591.07 2.416.95 2.781.11 2,747.67 0.00 0.00 0.00 0,00 0.00 0. -Deroli11en 298.68 354.96 502.44 356.781 0.00 0.00 0.001 0.00 0,00 0. -Total tons Hauled- 23,872.051 21.282.44 23,866-221 22,997,631 0.001 0.00 0.001 0.001 0.001 0. Tons Diverted Residential Single Family 3,169.00 2,671.72 3,371.99 3.079,19 0100 0.00 0.00 0.00 0.00 0. Commercial&Mkilli-Famity 514.97 576.35 541,53 636.02 0.00 0.00 0.00 0.00 0.00 0. Rol loff I Ind ustrial 66.57 7525 68.73 110,11 0.00 0.00 0,00 0.00 0.00 0. Demolilion 194.14 230,72 326.59 231.91 0,00 000_ 0.00 0.00 0,00 0. -Total Diversion- 3.644.69 3.554.05 4,308.83 4,057.22 0.00 0.00 0.00 0.00 0.00 0, Tons Landfllled: Residential Single Family 6,812.63 5.775,07 6,537.52 6,438,67 0.00 0.00 0,00 0.00 0.00 0. Commercial&Mutt.-Family10.485.50 9.487.39 10.131.64 9,73921 0100 0.00 0.00 0.00 0.00 0. Rollaff f Industrial 2,524.50 2,341,70 2.712.38 2.637,55 0.00 0.00 0,00 0.00 0,00 0. Demolition 104.54 124.24 175.85 124.87 0:00 0.00 0.00 0.00 0.00 0. •Total Tons landfilled- 19,927.37 17,728.39 19.557.39 18.940.41 0.00 0.00 0.00 0.00 0.00 0. Statistics Diversion-Res.S.F. 31.7% 31.6% 34,0% 32.4% 0.0% 0.0% 0.0% 0.01/. 0.0% 0.( %L)iverSion-CommJMultr-Fam. 4.7% 5,7% 5.1% 6.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0 %Diversion-Rolloff!Industrial 2.6% 3.1% 2.5% 4.0% 0.0% 0.0% 0.0% 0.0% 0.0% OX •Diversion-Demolition 65,0% 65.0% 65.0% 65.0% 0.0% 0.0% 0.0% OA% 0.0% 0-{ Total%Diversion 16.5%1 16.7%1 18.1%1 17.6%1 0.0% 0.0°!0 0,0-/.F 5.0%1 0.0% 0.[ Prepared by Republic Services 10f17 Revenue Dkl Code Thruriptlon Charge Cade 0esulPUsn eunladner she Total Charter 2026 Customer PI% Cluges wle the 2026 PI% 2D25 City WISE PI% 0"invNce SmaLL CortMrser Trash ORGANIC WAST E PROC ESSING 0.17 S 3,67% S - 11-044 S Small Container Trash R€CYCUNGSERVICE 0.17 5 - _ 3.67% S 11,04% S SmallCantamer Trash PICKUP SERVICE 0.17 $ 3,67% S 11.04% $ Smut Ca mer Trash VAROWASTE SERVICE D.17 $ 3.67% S 11.04% S "LLCOntalller Recycle ORGANIC WASTE PROCESSING 0.27 S - 3.67% $ 11.04% S SmallContaeier Recycle RECYCUNGSERViCE 0.17 $ 8.233.59 3.67%1 S 7,94211 _ 11-O4% S 676.81 Smal[Cantauier Recycle PICKUP SE RVICE 0.17 $ - 3.67% $ 1F.04% S Smelt Container Recycle YARDWASTESERVICE 0,17 S 3.67% $ 11.044 S Small Conumer Organic ORGANIC WASTE PROCESSING CA7 $ 3,87% $ 11.44% S Small Contain.r Organs RECYCLIN65ERVICE 0.17 $ 1.902-01 3.67% S 1.835-45 11.04% S 202,63 Smart Contawer Organic PICKUPSERVICE 0.17 $ 21,556.12 3.67% S 20.793.02 11.04% $ 2.295.55 SmaLLContslner Organic YARUWASTE SE RVICE 0.17 $ 3.67% S 11.04% $ SmaLICargai TTrash ORGANIC WAST E PROCESSING 0.72 S 3,67% S 11.04% $ Small Comamer Trash RECYCLINOSERVICE 0.32 $ 3.07% $ 11.04% S Small0-14191Trash PICKUP SERVICE 0-32 $ 1,147,76 3.67% $ 1,107,13 11.04% S 122.23 Small Cantaine r Trash YAROWASTE SE RVIC E 032 S 3.67% S 11.04% S SmaLL Carlalner Recycle ORGANIC WASTE PROCESSING 0-32 $ - 3.67% $ 11.04% S Small Contame'Recycle RECYCLING S€RVtCE 0-32 $ 9.723.69 3-67% $ 9.379.46 11.04% $ 1,035.49 5maR Conumer Recycle PICKUPSERVICE 0.32 $ 3,67% $ 11.04% $ Sma4 Conuine r R.cycle YARDWASTE SERVICE 0.32 S 3.07% S 12.04% $ Small Con;alner Organic ORGANIC WASTE PROCESSING 0.32 5 3,176.44 3.67% S 3.063.99 11,04% S 338.26 Small Container Organic RECYCLINGSERVICE 0.32 S 1,590.21 3.67%1$ 1,541.63 11,04% S 170.20 Small Cortainer Orgrnle PICKUP SERVICE 0,32 S 40,077.52 3.67%1 S 46.375.54 11-04% S 5,119,86 Small CGntamer 0rtarlIC YAROWASTE S€RVIC E 0.32 S 180,96 3.67% S 174,55 11,04% 3 19.27 Small Contame r Trash ORGANIC WASTE PROC ESSING 0-49 $ - 3.67% S I1,04% S SmaOConta+her Trash RECYC LING SE RVIC E 0.48 $ 90.61 3.67% 3 87.40 11.011% S 9.65 SmaLLContalner Trash PICKVPSERWCE 0.48 $ 43.897.51 3-67% S 42,343.50 11,04% $ 4,674.72 Smart Container Trash YARDWASTE SERVICE 11.48 S 367% S - 11-04% S - SmaLlContaer�rRacyt4 ORGANIC WASTE PROCESSING 0.48 S 3.67% S 11-04% $ Small Contame,Recyc It RECYCONrGSERVICE 0.40 $ 132.014,30 3.67% $ 12B.112.65 11,044 $ 14.143.64 Small Container Recyc It PICKUP SE RVIC E 0.48 $ 3.67% $ 11.04% S Small Container Recycle YARDWASTE SERVGE 0.46 $ 3.67% S - 11.04% $ Small C"Tiinerprpft C ORGANIC WASTE PROCESSING 0.48 S 282,22 3,67% S 174,80 11.04% $ 19,30 SmaLLConwworganic RECYCUNGSE.RVICE 0.48 $ 1.830.32 3,67%. 5 1,765.53 11.04% S 194.91 Small CORI& ,Organle PICKUP SERVICE 0.48 $ 153,099.28 3,67% S 147,679.44 21.04% S 16,30311 Small Cnntalncr Organic YARDWASTE SERVICE 0.48 $ 994.23 3.67% $ 959.03 11-04% S 105.88 Smae Contame r Trash ORCAMC WASTE PROCESSING 1 $ 102-92 3,54% $ 99.40 8.15% $ 8.10 Small Contain.r Trash RECYCLING SERVICE 1 $ 411,72 3,64% 5 397.64 1 6.15% $ 32.41 Small Container Trash PICKUPSERVICE 1 $ 42.743-30 3.544b S 41,281.92 8,1554 $ 3,364.48 SmallContalner Prase YAROWASTE SERVICE 1 $ 3,54% S 8,1545 $ Small ConTaw r Recycle O RGANIC WASTE PROCESSING I S 3,54% S 8.15% $ Small Coma tRecyc It RECYGUNGS€RVICE 1. S 42,093.23 3.54% S 40,654.08 8.15% S 3.313-31 Small Conue*t Racyc it PICKUPSERVICE 1 $ 240.E-0 3.54% S 232.41. B.15% $ ISA4 Small Cantalner Re 4 YARDWASTE SERVICE 1 S 3.54% $ 8.15% $ Small COntawT 0.r is ORGANIC WASTE PROCESSING 1 5 3.54% S 0.15% S "It conulner0rc nic RECYCLING S€RNCE 1 $ 205.84 3654% S 198.90 8,15% $ 16.29 Small Contame'Orgran¢ PICKUP SERVICE i S 9,652,53 3.54%, S 9,322.51 8.155% 3 759475 Small Container Organ is YAROWASIE SERVICE 1 S 3.54% S 8.15% S SmallCantairierTrash ORGANIC WASTE PROCESSING 1.5 $ 154% $ _ 8.15% f Small Container Trash RECYCUNGSERVICE 1.5 $ 330`48 3.54% $ 319.18 8.15% S 26-01 Smarr Contawr Trash MCKUPSERVICE 1.5 $ 22,265,99 3.54% $ 21,SO4.72 - 8.25% $ 1.752-63 Small Container Trash YAROWASI E SERVRC€ 15 S 3.54% $ 0.15% $ Sma:I Contame r Re cycle ORGANIC WASTE PROCESSING E.S $ 3.54% S 8.15% $ Small Contame r Re cyc;e RECVCLINGSERVICE 1-5 $ 16.615,49 3.54% S 16.047.41 8.15% $ 1,307.86 Small Container Recycle PICKUP SERVICE 1.5 S 3,54% $ SAS% $ - SmallCentarrierRecytle YARDWASTE SERVICE 1.5 $ 3.54% $ 0,15% S Small Container Orgardc ORGANIC WASTE PROCESSING 115 $ 3.54% S 0.15% S -Small Contame r Organic R ECYC LING SE KVIC E 1.5 $ 110.16 3,54% S 106,39 8.15% $ 8.67 Sma0Contuner 0rganc MCK.UPSEWVICE 1-5 $ 3.54% S 8,15% 5 SmaLLCon;arner Organs YARDWASTE SERVICE 1.5 S 3.54% $ 9.15% 5 SmaUConramertrash ORGANIC WASTE PROCESSING 2 $ 3.54% $ 8.15% S - Sma^.ICamtamerTrash RECYCLING SERVICE 7 $ 444.33 3.54% S 429-14 0.15% $ 34.97 Small Conume r Trash MCKUPSERVICE 2 $ 304.527.97 3.54% S 294,116,25 0.15% S 23.970,47 Small Container Trash YAROWASIE SERVICE 2 $ - 3,54% S 8.154 S Small Contam r ReCyCIA O RGANIC WASTE PROCESSING 2 S - 3.5444 S 9.15% S Small Container Recycle RECYCLINGSERVICE _ 2 S fi2,196.16 3.54% $ 60,D69.69 8.15% $ 4,895.64 SmaLLContaaKrRtcycle PICKUPSERVICE 2 S 3,544 $ 8.15% $ Sm UConlamer ReCy[le YARDWASTESERVICE 2 $ _ • 3.84% S - 8.15% S Small Contamar 01anit ORGANIC WASTE PR0C€SSING 2 S 1.428.97 3,54% S 1,380.11 8.15% S 112-48 Small Contawr Organic RECYCLING SERVICE 2 $ 720-92 3-54% $ 696.18 8.15% $ 56.74 SmaLLContalner Organic PICKUP SERVICE 2 $ 53,395-90 3.54% S 51.570.39 8-15% $ 4,202.99 SmallCon;awOrganic YARDWASTE SERVICE 2 S 3.54% 3 8.15% S Snsa;l Container Trash ORGANIC WASTE PROCESSING 3 S 3.54% S - 0,15% $ Small CCntamer Trash RECYCLING SERVICE 3 $ 3.54% S 8.15tt S Small Contavrer Trash PICK UP SE RVICE 3 $ 1,545,65I.92 3,54% $ 1,492.806S7 8.15r<: $ 121.663.74 5ma0Contamer Trash YARDWASTE SERVICE 3,54% S 8,15% S Small Contawr RetyCle ORGANICWASTE PROCESSING 3 S - 3,54% S - 1 8-15% $ - SmaLLCOnulnerpecycle RECYCLINGSTFMCE 3 3 341,911.53 3.54% S 330,221.68 0-15% $ 26,913.07 Smau Container Recyc le PICKUP SERVICE 3 $ ifi9.80 3.Yt% S 163-99 0,15% 3 13.37 Small COnulner Recyn:la YA.RDWA57ESERVWE 3 $ 3.54% 5 0.15% S Sm LIC4ntaoiar0rganlc ORGANIC WASTE PROCESSAW. , 3 $ 3.54% $ 8.15'ti S Smalt Conalear Organic RECYCif NG SERVICE. 3 _ $ - 3.54% $ Sma:l Conamer Orp,.ic PICKUPSERVICE 3 $ - 3.54% S 0.15% S Small Cwamer Organic YAROWASTE SE RVICE 3 $ 3.54% S 0.15% S Small Contalner Trash ORGANIC WASTE PROC E55E1415 4 $ 3.54% $ - 8.15% S "Licannrnerirash REC yC LING SE RVFC E 4 S 8.052.82 3.54% S 7,777-50 9.15% S 633.87 Sm LIContatner Trash PICKUPS€RVICE 4 S 1.456.519.15 3.54% $ 1.406.721.22 8,15% $ 114,647.78 Sm L[Contwner Trash YAROWA5TESfRVICE a $ 3.54% S 8.15% $ Smse ConamerRecycie ORGANIC WASTE PROCESSING 4 S - 3-54% S 8.15% S - Sma,lContamerRecycle RECYCLING SERVICE 4 % 148,052.47 3.544 $ 142,'a%.60 8,15% S 11.653.73 "IICOntamer Recycle PICKUPSERVICE a S 3.54% $ - 8.15% S Small Can talner Recyc It YARDWASTE SE RViC F 4 $ - 3.54% $ - 8,15% S SmaA Canlame r O*ganl C ORGANIC WASTE PROCESSING 4 S 3,54% S 9.15% $ Sms;I Contame r Organi c iIECYCUlAr SERVICE 4 $ - 3.54% S _ 8.15% $ 5ma11Container Organs PICKUPSFRVICE 4 $ 3,54%1 $ 8,15% $ - SmatlConamerOraan,c YAROWASTF SERVICE A S 3.54% $ 9.15% $ Small Canamer TraSh ORGANIC WASTE PROCESSING 5 3 3.54% S B.15% $ Sm. UCanalne,Tra%N RFCYCLINGSERVICE 5 S 3.54% S B.1S% S - SmaNConamerTrasn PICKUP SE!VICE 5 S 3.64% S 8.15% S Small Contaner Trash YAROWASIESERVICE 5 $ 3.54% S 8.15% S Srr,al Ccnlamer Re c yc-e OR WASTE PROC ESSING 5 $ 3.54% S 8.15% $ 5-1 conamer At cyc.e RECYCLING SEAME 5 5 3.54% S 8,15% $ SmaA Comame r Rc cyece PICKUPSERVICE 5 $ - 3.54% S _ 915% $ Srnsp Container Recyc4 YARTRWAST€SERVICE 5 S 3.54% S 8-15% $ SnaLLConla4ner Organic ORGANICWASIE PROCESS14G 5 S 3.54% S _ 8,15% S - SmallCantalnerOrganic RECYCLMSERVICE 5 S 3.54% $ 8.15% S - SmallConamerOrwic PICKUP SERVICE 5 $ - 3.54% $ - 8,15% $ Small Canalnm Or.ganlc VAROWA.STE S€RVICE 5 S 3,54% S 0.15% S Small Ccnamer Trash ORGANIC WASTE PROCESSING 6 $ 3.54% $ 8.15% $ - SmaRContarnerTrash R.€CYCLING SERVICE 6 $ H4% S 8.15% $ ma SllCcnlm,mrTrash PICKUPSERVICE 6 S 27.221.93 3-54% S 21.452.17 8.15% $ 1,749.17 "LLContalrier Trash YAROWASTE SERVICE 6 $ 3,54% S 8,15% S Small Container RricAl. NIC WASTE PROCESSING 6 S 3.54% $ 6.15% S SmaRContamrRECYCLINGSERVICE 6 $ 954.14 3.54% $ 92142 B.15% S 75.10 SmaLLCantamer RPICKUP SE RVICE 6 S 3,54% S 8.15% S SmallCortwftrR. ARWWASSTESFRVICE 6 S 3,54% S 0.15% S Small Canainv ONIC WASTE PROC ESSING 6 S 3.54% S 8.15% S Small CanaKxrgAECYCLIIiG SERVICE 6 3 3.54% S 8.15% S Small Container OPICKUPSFRVICE 6 S 3.54% S 8.15% $ Small Container OAROWASTESERVICF 6 1 3,54% S _8.1555 S Teal $ 4,509,52434 S 4.354,826.74 S 366,863.77