• CR&R Rate Hike 2019: Clarifications

Where to start on this topic? 

First, understand going in that the following is the way a video/animator guy —turned city council member, tells you what he understands about an accounting issue. 

Another award winning graphic from the WR art department.

If my wording doesn't earn an A+ in your book, I understand... the point of this blog is to dispel some inaccurate information that I've seen circulating out there, not win the Nobel Peace Prize in CPI (Consumer Price Index) interpretation.

Ready? Here goes...

Our trash rates go up every year based on inflation, it's in the contract. The difference this year is that there was a Prop 218 notification because the contract had to be amended. 

Use this link to read more about Prop 2018.

The change was due to the fact that CPI that had been used, was now defunct and a new CPI had to be used.

The previous CPI was called: Los Angeles/Anaheim/Riverside Metropolitan Area

That CPI was changed to two different CPIs. The LA CPI became Los Angeles/Long Beach/Anaheim Area (which carried over the existing historical data), and a new one, Riverside/San Bernardino/Ontario (which was given a new baseline of 100), came into existence.

This gets pretty wonky, so let me de-wonkify it best I can.

The above graphic is one I made from three different sheets of paper. It's not a legal document, just something to give you a reference.

Try enlarging the image to read it.

The green arrow is pointing to a missing data point. This index was created in December 2017, given the arbitrary starting point of 100, and therefore there wasn't an average for 2017 to compare 2018 to for the annual CPI. 

There is another view out there, that suggests that there are enough Data Points since the index had a starting position of 100 as of December 2017, but the key column is blank... and that matters (If you're not lost yet, you're in rare company).

The fuschia arrow is pointing to annual CPI for years 2017 and 2018 in the LA CPI. The column under it has the math worked out as percentage differences between years. The circled number (3.8) is the CPI for 2018. 

The blue arrow indicates the language in our contract with CR&R that states, The change shall be measured for the twelve month period January through December.

With the new CPI, there has only been ONE such twelve month period to date. Therefore, the LA CPI, which kept its historical data when Riverside was part of it, was used for the rest of 2019.

Updated with comments on the CPI question by BLS (Bureau of Labor Statistics).

The other problem that occured here is that the Prop 218 notice was wrong... TWICE. The printer, Press Print of Banning, took the blame for the second error, where the first mailing was sent out a second time.

That's the gist of it... I hope that it made some sense.

This is from the Temecula CR&R rate increase, dated June 11th.
They also used the new Los Angeles/Long Beach/Anaheim CPI to calculate the increase.

There were a few other erroneous things posted about the new contract with CR&R that I put to spokesman Alex Braicovich for clarification.

• Trash rates are not going up 100%. For an average home, with three barrels, the rate will be going from $27.11 to $28.09 a month (3.61%).
• There will be no change in the twice yearly bulky item pickups. If you want an additional bulky item pick up it will now cost you $25.16, up from last year's rate of $24.28.
• You cannot opt out of trash service unless you prove that you've gone (or will be going) to the dump, with a receipt, each week (even then it'll be a bureaucratic nightmare getting it set up). You cannot team up with your neighbor(s) and create your own de facto trash company where you say you'll truck your neighbor's trash along with yours. It's a health issue.

Opinion Time:
 
Inflation is a built into our monetary system and rate increases are a fact of life. That goes for every facet of our lives where money is involved. 

Our houses appreciate thanks to inflation, as do our wages. When I moved to Wildomar in 2001 the price of gasoline was under $1.50 and it's more than doubled. The value of my house has seen the same thing and so too about most other things that money can buy. 

My concern regarding the CR&R rate increase was centered around which CPI to use for this year. 

The argument for switching to the new Riverside CPI was good, but the argument for following the course that was chosen was just more solid, and contractually enforceable.

Though I'd love for CR&R to pick up my trash for free, or at least promise to never raise my rates again... that suggestion only brought a combo raised eyebrow—tilted head—mercy smirk from Alex... all that was missing was him doing the sound of a rimshot.

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The trouble with integrity is that it doesn't come in bits and pieces. It's either all or nothing.
– EG Marshall CBSRMT 1976

The trouble with Wildomar Rap is that there is no off switch.

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