Staff Report re Republic Services MOU Page 1 of 3
STAFF REPORT
TO
: Mayor and Members of the City Council
FROM: Dan Barros, City Manager
MEETING DATE: January 28, 2026
SUBJECT: Consideration of Approval of Memorandum of Understanding (MOU) with Republic Services regarding credit to ratepayers
RECOMMENDATION
Staff recommend that the City Council consider the following motion:
APPROVE AND AUTHORIZE THE CITY MANAGER TO EXECUTE A MEMORANDUM OF
UNDERSTANDING (MOU) WITH REPUBLIC SERVICES REGARDING A CREDIT TO
RATEPAYERS AND NEGOTIATE MINOR ADMINISTRATIVE CHANGES PRIOR TO
EXECUTION
C
OUNCIL ADOPTED VALUES
T
his recommendation is consistent with the Council’s adopted values from the Values-Based Code of Conduct for responsibility because consideration of the MOU provides a credit to Colma’s ratepayers.
BACKGROUND
In July 2025, Republic Services had a work stoppage due to a Republic’s Teamsters strike at Forward landfill in Manteca and many Bay Area Republic Services workers committed to a work stoppage in solidarity with the Teamsters, causing service disruptions in Colma (and Half Moon Bay, Daly City and other cities served by Republic) where residential and commercial trash, recycling and organics pickups were not collected or delayed for approximately 2 weeks .
Republic’s General Manager stat ed non-union Republic staff would collect some garbage from Colma residents and businesses, but several challenges resulted from no or minimal collection of garbage, recycling and organics due to the work stoppage due to Republic’s lack of staffing.
During this time, Town staff worked to assist residents where feasible and Republic provided a rolloff container at the corporation yard as an interim measure. Once the work stoppage ended, Colma staff requested a credit for ratepayers and a meeting with Republic’s General Manager and Municipal Manager in early August to discuss a method to calculate the credit to residential and commercial ratepayers. At our meeting, Republic stated they’d provide a draft calculation for the credit and would send an MOU for our consideration.
AGENDA ITEM #7
Staff Report re Republic Services MOU Page 2 of 3
On 8/27/25 Republic provided their credit calculations for ratepayers and staff met with Republic in September to discuss Republic’s proposed credit scenarios and on 9/5/25 informed Republic of the Town’s preferred approach for credits. On September 25, Republic sent a draft MOU to the Town. Town staff does not believe a MOU is necessary for Republic to issue the credits and Town staff believes the Franchise Agreement already obligates Republic to issue this credit.
Nevertheless, Republic continued to advocate for an MOU. On November 5 staff met with Republic General Manager, Republic legal counsel and regional manager to discuss the MOU and at this meeting, Republic continued to advocate for the MOU . At this time Town staff is bringing this item forward for Council consideration.
ANALYSIS
The MOU in Attachment 1 details Republic’s plan and calculation to credit residential and commercial customers. The following provides the excerpts related to residential and commercial customers, and Republic’s release and discharge related to any claims arising from or related to the service disruptions.
Per the MOU, for all residential customers, Allied will credit each of these customers for the collection services portion of their bills (which is a separate service component from the processing and disposal of solid waste, recyclables, and organics—and which later service component was provided to all residential customers even though the collection of these materials was delayed) in the amounts detailed in Exhibit A, Table 1. The Town has agreed to include franchise fees as part of the credit to customers. This amount will be deducted from the next franchise fee calculation and payment to the Town, after credits are issued. The total credit for franchise fees will be in the amounts detailed in Exhibit A.
Per the MOU, for commercial customers, credits shall be allowed on a case-by-case basis Republic’s General Manager stated in a meeting with staff that they will credit on a case by case basis due to their providing some level of service to commercial accounts during the work stoppage). To implement this credit process, Allied agrees to notify all multi-family and commercial customers via its website at https://www.republicservices.com/municipality/colma- ca stating that credits will be made available for multi-family and commercial customers of disruptions of collection services experienced by each of them during the period of July 8 through July 18, 2025. Republic will calculate and offer a credit for each customer who contacts Republic requesting a credit on a case-by-case basis based on the level of disruption of service to each such customer, as verified by Allied’s records, for each missed collection event.
The credit will be based on the portion of Allied’s bill to each such customer representing the collection component of the bill-only, not including a credit for franchise and other Town fees.
The MOU details the timeline for the credits.
Per the MOU, the Town agrees, for itself and on behalf of all residential, multi-family and commercial customers of Allied who subscribed to solid waste collection services during the month of July 2025, to release and discharge Allied and its affiliates from any claims arising from or related to the service disruptions that occurred in the Town during the period of July 8 through July 18, 2025, including but not limited to any claims for breach of the Franchise Agreement, arising from or related to the July 2025 service disruptions. At this time, Town staff isn’t aware of any other claims the Town would have against Republic relating to the strike, other than the credit for missed pickups.
Staff Report re Republic Services MOU Page 3 of 3
In addition, Allied agrees for itself and its affiliates, to release and discharges the Town from any claims for breach of the Franchise Agreement, including for any and all damages, arising from the Town's allowance of credits to residential, multifamily, and commercial customers in the Town provided pursuant to the terms of this MOU.
Overall, the Town and Allied acknowledge that this MOU represents a settlement and release of all claims related to the July 2025 service disruptions and the above-described credits allowed on the Town’s billings and agree that the parties’ performance under this MOU is not to constitute or be interpreted as an admission of any liability or wrongdoing whatsoever by any party to this MOU.
FISCAL IMPACT
The MOU will not materially impact the Town's budget since the MOU is related to residential and commercial ratepayers.
ALTERNATIVES
The City Council could consider the alternative of not approving the MOU and provide direction to staff on next steps.
CONCLUSION
Staff does not have a recommendation on this MOU. Council should consider the MOU for approval or denial.
ATTACHMENT
A
. Re public’s Memorandum of Understanding (MOU)
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (“MOU”) is entered into as of _____ ___, 2025 ("Effective Date") by and between the Town of Colma (“Town”) and Allied Waste Services of North America , LLC (" Allied") to memorialize the understandings reached between them concerning the partial disruption of Republic’s collection services during the period of July 8 through July 18, 2025, due to labor action of third party employees.
RECITALS
1. Republic provides collection services for the collection, processing, and disposal of solid waste, recyclable material, and organics to residents , multi-family and commercial customers in the Town pursuant to an exclusive Franchise Agreement dated August 31, 2016.
2. Commencing on July 8, 2025, and extending through July 18, 2025, some of Republic’s employees providing collection services in the Town elected not to report to work and /or not to cross picket lines established by employees of another subsidiary of Republic Services, Inc.
3. In recognition of the annoyance and inconvenience caused by the delay in collection services for most residential and some multi-family and commercial customers in the Town in July 2025, Allied has offered to provide credits to its residential, multi -family, and commercial customers in the Town.
AGREEMENT AND RELEASE
NOW THEREFORE, the Town and Allied agree as follows:
1. Customer Credits to be Provided.
• Residential Customers: For all residential customers, Allied will credit each of these customers for the collection services portion of their bills (which is a separate service component from the processing and disposal of solid waste, recyclables, and organics—and which later service component was provided to all residential customers even though the collection of these materials was delayed) in the amounts detailed in Exhibit A, Table 1.
The Town has agreed to include franchise fees as part of the credit to customers.
This amount will be deducted from the next franchise fee calculation and payment to the Town, after credits are issued. The total credit for franchise fees will be in the amounts detailed in Exhibit A, Table 1.
The grand total credit to residential customers will be $4,507. • Multi-Family and Commercial Customers: For all multi -family and commercial customers, credits shall be allowed on a case -by-case basis. To implement this
ATTACHMENT A
credit process, Allied agrees to notify all multi -family and commercial customers via its website at https://www.republicservices.com/municipality/colma-ca stating that credits will be made available for multi-family and commercial customers of disruptions of collection services experienced by each of them during the period of July 8 through July 18, 2025. Republic will calculate and offer a credit for each customer who contacts Republic requesting a credit on a case -by-case basis based on the level of disruption of service to each such customer , as verified by Allied’s records, for each missed collection event . The credit will be based on the portion of Allied’s bill to each such customer representing the collection component of the bill-only, not including a credit for franchise and other Town fees.
2. Timing of Customer Credits.
• Residential Customers : Allied will commence processing residential customer credits starting with the billing cycle on 11/1/25 and continuing until all residential customers who were subscribing to Allied’s services during the month of July 2025 have received the agreed-upon credits.
• Multi-Family and Commercial Customers : Allied will receive, process and grant multi-family and commercial customer credits for all multi-family and commercial customers contacting Allied and requesting a credit for their July services, provided that Allied verifies the claimed credit. Multi-family and commercial customers who experienced a disruption in their service schedule and who timely contacted Allied requesting a credit shall be granted a credit. Allied will receive and process all such credit reques ts on a case -by-case basis for up to thirty (30) days following the signing of this MOU by the Town.
3. Full Resolution of All Claims.
The Town agrees, for itself and on behalf of all residential, multi -family and commercial customers of Allied who subscribed to solid waste collection services during the month of July 2025, to release and discharge Allied and its affiliates from any claims arising from or related to the service disruptions that occurred in the Town during the period of July 8 through July 18, 2025, including but not limited to any claims for breach of the Franchise Agreement, arising from or related to the July 2025 service disruptions.
Allied agrees for itself and its affiliates, agrees to release and discharges the Town from any claims for breach of the Franchise Agreement, including for any and all damages, arising from the Town's allowance of credits to residential, multifamily, and commercial customers in the Town provided pursuant to the terms of this MOU.
The Town and Allied acknowledge that this MOU represents a settlement and release of all claims related to the July 2025 service disruptions and the above-described credits allowed on the Town’s billings and agree that the parties’ performance under this MOU is not to constitute or be interpreted as an admission of any liability or wrongdoing whatsoever by any party to this MOU.
4. Entire Agreement. This MOU, including the recitals, constitutes the entire agreement and understanding of the Town and Allied and supersedes all prior negotiations and/or agreements, proposed or otherwise, written or oral, concerning the subject matter hereof. Each Party acknowledges that in entering into this Agreement, it has not relied on any promise, representation, or warra nty not contained in this Agreement.
EACH OF THE PARTIES CERTIFIES THAT IT HAS READ THIS MEMORANDUM OF
UNDERSTANDING AND FULLY UNDERSTANDS AND AGREES TO EACH OF THE ABOVE TERMS, CONDITIONS, AND PROVISIONS. EACH SIGNATORY TO THIS AGREEMENT
REPRESENTS AND WARRANTS THAT HE OR SHE IS AUTHORIZED TO EXECUTE THIS
AGREEMENT ON BEHALF OF THE PARTY FOR WHICH HE OR SHE EXECUTED THE AGREEMENT.
IN WITNESS WHEREOF, and intending to be legally bound, each of the Parties hereto has caused this Agreement to be executed as of the date(s) set forth below.
IT IS SO AGREED.
Exhibit A.
Table A - Credit per
Container Size
20 Gallons 32 Gallons 64 Gallons 96 Gallons
Total MSW Containers 44 261 34 9
Service Credit $9.29 $10.74 $21.49 $32.24
$409 $2,804 $731 $290
Total - Allied Service Credit $4,233
Franchise and Other Fees $0.60 $0.69 $1.39 $2.08
$26 $181 $47 $19
Total - Franchise/Town Fees
Credit1 $273
Credit Total Per Customer $9.89 $11.44 $22.87 $34.32
Grand Total (Service Credit +
Town Fees Credit) $4,507
1 amount to be paid by the town and deducted from the next franchise fee payment