1 MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (“MOU”) is entered into as of November 20, 2025 ("Effective Date") by and between the City of Fairfield (“City”) and Solano Garbage Company ("Company") to memorialize the understandings reached between them concerning the disruption of the Company’s collection services for residential customers during the period of July 8 through July 18, 2025, due to labor action of third party employees.
RECITALS
1. The Company provides collection services for the collection, processing, and disposal of solid waste, recyclable material, and organics to residents in the City pursuant to an exclusive Franchise Agreement dated March 15, 2022.
2. Commencing on July 8, 2025, and extending through July 18, 20 25, some of the Company’s employees providing collection services in the City elected not to report to work and /or not to cross picket lines established by employees of another subsidiary of the Company’s parent company, Republic Services, Inc. (the “Dispute Period”).
3. In recognition of the annoyance and inconvenience caused by the delay in collection services for most residential customers in the City in July 2025, the Company has offered to provide credits to its residential customers in the City pursuant to this MOU.
4. The Company does the billing and collection for all solid waste services provided by the Company in the City and then remits to the City certain franchise and other fees based on its collections.
5. As a result of the delay in collection services for some residential customers in the City during the Dispute Period, the City’s Police Department issued an Administrative Citation to the Company dated July 18, 2025 (Citation No. 1259), for an alleged violation of Fairfield Municipal Code Section 27.404(f) (the “Citation”).
6. The City Council has approved the following credit structure to be provided by the Company to its residential customers in the City , which along with the other consideration recited herein, shall constitute a full and final resolution and settlement of all claims the City may have against the Company, including the Citation, arising from or related to the service disruptions for Company’s customers in the City during the period of July 8 through July 18, 2025. 2 AGREEMENT AND RELEASE
NOW THEREFORE, the City and Company agree as follows:
1. Residential Customer Credits to be Provided.
For all residential customers who were subscribing to the Company’s services during the month of July 2025 in the City, the Company 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 estimated credit to residential customers for base scheduled service is $309,751 as calculated in Exhibit A. Where applicable, the credits provided to an individual customer will include additional cans and backdoor service.
The Company will commence processing residential customer credits starting with the Company’s billing cycle on December 31, 2025, and continue until all residential customers who were subscribing to the Company’s services during the month of July 2025 have received the agreed -upon credits. All credits will be provided to residential customers no later than December 31, 2025.
2. Reimbursement of City Costs During Dispute Period.
Within 30 days following the City’s execution of this MOU, the Company shall issue its check to the City for Seventy-Five Thousand Dollars ($75,000.00) to reimburse the City for its costs incurred in providing supplemental solid waste collection services during the Dispute Period.
3. Disposal Coupons for Residents.
The Company will provide its residential customers in the City with one (1) landfill coupon per customer, to be used only in calendar year 2026, that will entitle each residential addressee to deliver, free of charge, for disposal at the Potrero Hills Landfill: (a) one load of up to two (2) cubic yards of solid waste and (b) one Bulky Item (as defined in section 9.030 of the Fairfield Municipal Code), which are to be self-hauled by the addressee to the Potrero Hills Landfill.
4. Collection Schedule for Certain City Trash Cans.
The Company will service six (6) City cans not currently on the Company’s route, at the locations noted in Exhibit B. The Company will service these cans on Friday of each week. The City will identify 3 these six most highly impacted stops to receive this enhanced service.
5. Good Faith Negotiation of Franchise Amendment.
The City and Company will negotiate in good faith a potential amendment to the Franchise Agreement that would require the Company to submit a strike plan to the City, including a communication plan, in advance of any anticipated future strikes.
6. Full Resolution of All Claims Relating to Customer Credits.
The City agrees, for itself and on behalf of all customers of Company who subscribed to solid waste collection services during the month of July 2025, to release and discharge Company and its affiliates from any claims arising from or related to the collection service disruptions that occurred in the City during the Dispute Period of July 8 through July 18, 2025, including but not limited to any claims for damages, fees, breach of the Franchise Agreement, or as alleged in or relating to the Citation, arising from or related to the July 2025 service disruptions.
The City and Company acknowledge that this MOU represents a settlement and release of all claims related to the July 2025 service disruptions, the Citation, and the above-described credits allowed on the Company’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.
7. Parties acknowledge the provisions of section 1542 of the Civil Code of the State of California, and hereby knowingly waives the benefit of such provisions on its behalf, and understands that said section provides as follows:
A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
8. Entire Agreement. This MOU, including the recitals, constitutes the entire agreement and understanding of the City and Company 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 warranty not contained in this Agreement. The Parties forgo, waive, release and relinquish any and all claims or rights to pursue a claim or lawsuit against any of the other Parties to this Agreement before any City, County, State, Federal or other governmental agency or court concerning the matters described within this 4 Agreement, except to enforce the provisions of this Agreement. In the event either Party seeks to enforce the provisions of this Agreement, venue shall be the Solano County Superior Court of California.
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 W ARRANTS 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.
__________________________________
Y asser Brenes
Area President
Solano Garbage Company
Date: ________________
__________________________________
David Gassaway
City Manager
City of Fairfield
Date: ________________
___________________________________ __________________________________ David Lim Lance Bayer , Counsel
City Attorney Fairfield Police Department
City of Fairfield
Date: ________________ Date: ________________
11/21/2025
5 Exhibit A
Customers Total Reimbursement
City Services Reimbursement $75,000
Service Credit 2x weeks $309,751
Total Fairfield Customers 29,211
Fairfield Customers with Backdoor Service 231
Fairfield Senior Customers with Backdoor Service 30
Fairfield Senior/ Lifeline Rate Customers 187
Fairfield Customers with Additional Carts 535
Fairfield Customers with Additional YW Carts 990
Fairfield Customers with Additional YW Carts
Backdoor Service
17 Travis Airforce Base Customers 1,181
Total - Republic Service Credit $384,751
City of Fairfield Residents
One additional Landfill Coupon for Potrero Hills Landfill for calendar year 2026.
One load of up to Two (2) Cubic Yards of Solid Waste and One (1) Bulky Item.
Extended City Trash Services Enhanced service of Six (6) public trash cans designated by the city. Adding the pickups to current services.
6 Exhibit B
See following pages
2 bus stop locations on N. Texas St. just south of Acacia St.
Exhibit B
Bus stop location on N. Texas St. just north of Travis Blvd. (in front of IHOP)
Exhibit B
Bus stop location on N. Texas St. across from Utah Street (or Dave’s Giant Burger)
Exhibit B
2 bus stop locations: 1) Union Ave. just north of USPS; 2) Kentucky St. in front of USPS.
Exhibit B