Agenda Report
Fullerton City Council
MEETING DATE: SEPTEMBER 16, 2025
TO: CITY COUNCIL
SUBMITTED BY: STEPHEN BISE, PUBLIC WORKS DIRECTOR
PREPARED BY: JEROME JOAQUIN, ADMINISTRATIVE MANAGER
MICHELLE DURON, SOLID WASTE AND RECYCLING SPECIALIST
SUBJECT: SOLID WASTE SERVICES REQUEST FOR PROPOSAL
SUMMARY
Staff presents the Final Draft Request for Proposal (RFP) as requested by City Council.
PROPOSED MOTION
Authorize and direct the Interim City Manager to release the Solid Waste Service Request for Proposal.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
None.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
This item has no General Fund (Fund 10) fiscal impact. The City Refuse Fund (Fund 46) manages funding for solid waste services. The RFP process would ultimately lead to negotiating and executing a new long-term service agreement for solid waste collection, processing and disposal. Staff will analyze the financial implications of the agreement and present at a future City Council meeting.
BACKGROUND AND DISCUSSION
Staff presented the Solid Waste Services Request for Proposal (RFP) City Council on August 19, 2025 and requested authorization to release the RFP. City Council directed staff to continue the item to September 16, 2025 to include the draft RFP and proposed contract agreement as report attachments.
The solid waste services agreement term ends June 30, 2027. City Council formed a Solid Waste Ad Hoc Committee to evaluate current service levels, identify future needs and assist in developing a new competitive RFP process.
Senate Bill 1383 (SB 1383) adopted in September 2016 takes precedence over RFP proceedings to establish required organic waste collection services and assistance with other components of the law such as procurement, waivers and exemptions, contamination monitoring, recordkeeping and reporting. The current contract does not meet new regulatory laws and collection services. Continued non-compliance could result in penalties amounting to $500 to $10,000 per violation per day.
The City is on a SB 1383 Corrective Action Plan (CAP) due to collection service implementation tasks delayed by unsuccessful contract negotiations with Republic Services since 2021. This delay placed the City in jeopardy of not meeting legal compliance. The State required a RFP contingency plan to receive a final CAP extension in case negotiations continued to fail. Republic Services submitted proposals that did not align with the best interest of the City which obligated the City to proceed with the RFP process, receiving an extension from the state until June 30, 2027. The following RFP timeline aligns with the state stipulation to begin new contract services on July 1, 2027.
Activity
Milestone Date
RFP Posted - Electronic Delivery
September 17, 2025
Mandatory Pre-Proposer Conference
October 1, 2025
Last Day to Submit RFP Questions
October 15, 2025
Last Written Response to Proposer Questions
October 17, 2025
Deadline For Submittal of Proposals
November 17, 2025
Complete Proposal Evaluation
January 15, 2026
Interview Selected Proposers
January 19 through 23, 2026
Review Committee Finalize Recommendation
February 2, 2026
Finalize Agreement with Recommended Firm
March 2, 2026
Finalize Equipment Purchase and Roll-Out Plan
March 16, 2026
Present Evaluation at Council Study Session
April 7, 2026
Present Final Recommendation to the City Council
April 21, 2026
Selected Firm Orders Equipment
July 1, 2026
Roll Out of Commercial Program
July 1, 2027
Roll Out of Residential Program
July 1, 2027
The City Manager’s Office, Public Works staff and the Ad Hoc Committee (Mayor Jung and Council Member Valencia) met three times over the past few months to review and discuss various elements of the proposed RFP. City priorities and key service component expectations such as enhancing collection services, organics and recycling program improvements, compliance with state-mandated waste diversion requirements, value added services, financial sustainability, transparent rate structures and ensuring cost efficiency guided the discussions.
The committee identified specific service gaps within the community and included succeeding enhancements for improved daily residential, multifamily and commercial sector activities.
Key service components include:
SB 1383 compliance collection services
residential senior discount
commercial three cart system collection
bulky item quarterly collection services
city-owned waste enclosure maintenance services
downtown block maintenance services
household hazardous waste, paper shredding, compost give-away additional collection programs collection vehicles (new or as-new condition)
equipment (new additional container configurations with identified markings).
The committee established contract fees to provide a structured mechanism to generate revenue to support municipal operations and oversight as part of ongoing efforts to ensure the financial sustainability of City solid waste services. These fees would offset contract administration costs, administration costs and various regulatory compliance requirements. Additionally, this framework provides flexibility for future program enhancements while maintaining fiscal responsibility. Staff, along with Solid Waste Recycling Consultant and legal counsel, developed these fees based on the cost of service with nexus to refuse collection operation.
Description
Fee
RFP Reimbursement Fee
Actual Cost (Estimate $75,000)
Franchise Fee
10% Gross Receipts
NPDES Fee
$1,550,000 + CPI
*City Billing Fee
$155,000 + CPI
Legislative Compliance Fee
$2,000,000 + CPI
*Bid Alternative to proposers to provide billing services based on Council’s recommendation.
Issuing an RFP for a solid waste services contract gives the City an opportunity to ensure the selected proposer aligns with long-term community needs and allows the City to make informed, strategic decisions in the best interest of the community.
RFP key benefits include:
Encouraging competitive bidding: Promotes fairness and transparency while providing an opportunity to evaluate multiple vendors and innovative service approaches.
Improving service levels: Allows the City to refine service expectations and incorporate enhancements based on public and stakeholder feedback.
Cost control: Enables the City to compare pricing and service models to ensure it selects the most cost-effective solution. The City is in the top two-thirds of residential and the second highest in commercial waste collection rates in Orange County even without organic collection services.
Revised rate structures: Permits the City to restructure the multifamily and downtown block account pricing to a set flat rate model.
Sustainability alignment: Addresses evolving environmental goals and regulatory requirements through performance-based proposals.
Contractual flexibility: Provides an opportunity to restructure contract terms to improve accountability, reporting and responsiveness.
Staff rescheduled the RFP for release on September 17, 2025, initiating a formal bidding process. The City will invite qualified firms to submit proposals outlining their approach to delivering solid waste services in line with City expectations.
Staff will hold a mandatory pre-proposal meeting with prospective vendors on October 1, 2025. Staff anticipates returning to City Council in Spring 2026 with a recommendation for contract award based on the evaluation of submitted proposals.
The release of the Solid Waste Services RFP represents a critical step in ensuring the City continues to receive high-quality, cost-effective and environmentally responsible waste management services. Staff appreciates the guidance of the Ad Hoc Committee and looks forward to reviewing competitive proposals in the coming months.
Attachments:
Attachment 1 – Final Draft Request for Proposal
cc: Interim City Manager Eddie Manfro
Solid Waste Services Request for Proposal
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