Agenda Report
Fullerton City Council
MEETING DATE: OCTOBER 6, 2026
TO: CITY COUNCIL
SUBMITTED BY: STEPHEN BISE, PUBLIC WORKS DIRECTOR
PREPARED BY: JEROME JOAQUIN, ADMINISTRATIVE MANAGER
MICHELLE DURON, ENVIRONMENTAL SERVICES SPECIALIST
SUBJECT: SOLID WASTE MANAGEMENT SERVICES RFP SELECTION
SUMMARY
Staff requests City Council direction on the next phase of the Solid Waste Management Services Request for Proposal (RFP) process, including authorization for staff to negotiate the final terms of the service agreement with the selected proposer and prepare the negotiated contract for City Council consideration and final approval.
PROPOSED MOTION
Provide direction regarding the selected proposer, authorize staff to negotiate the final contract terms, and direct staff to return to City Council for final contract award.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends 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
Customer service rates in the Refuse Fund (Fund 46) incorporate the Solid Waste Management Services contract cost structure for residential and commercial solid waste services. Staff would present final fiscal implications based on the final negotiated contract for the Refuse Fund, General Fund and customer service rates with the contract award.
BACKGROUND AND DISCUSSION
Senate Bill 1383, signed by Governor Brown in 2016, established statewide requirements for organic waste recycling and food recovery to reduce methane emissions. Following the law’s implementation, the City undertook a multi‑year effort to comply, including negotiations with Republic Services beginning in 2021 and the submission of compliance notices to CalRecycle. Despite completing most of CalRecycle’s corrective action requirements, progress stalled due to repeated delays and unapproved or inconsistent rate proposals from Republic.
By early 2025, the City moved toward issuing a Request for Proposals (RFP) after unsuccessful attempts to finalize an SB 1383 agreement. The City Council then formed an Ad Hoc Committee and released a Solid Waste Management Services RFP in September 2025, receiving nine proposals.
Through extensive evaluation, EDCO, CR&R, and Universal Waste Systems ranked as the top three firms. The Ad Hoc Committee later recommended expanding consideration to additional firms, including Republic, Athens, and Valley Vista. City Council ultimately advanced six firms, then narrowed the field to CR&R, Republic, and Valley Vista at the June 30, 2026 City Council Meeting. These remaining firms attended two community events and submitted enhanced offers. Community feedback from the events were heavily focused on service quality, bulky item service, container management, customer service, environmental priorities, pricing and varies preference between CR&R and Republic Services.
At the September 15, 2026 Solid Waste Management Services RFP Selection meeting, staff presented the enhanced offers to the City Council. Once more, Council directed staff to advance the two firms, CR&R Environmental Services and Republic Services, for final consideration.
The City Council also noted that there was still room for negotiation in pricing and enhancement clarifications. The two firms were provided one final opportunity to enhance and/or clarify their submissions based on priorities identified during the meeting and submitted their true best and final proposals by September 25, 2026.
Final Offer Review
Staff reviewed the two final offer submissions, communicated with both firms directly to clarify and confirm pricing and service enhancement offerings, and prepared a comparative analysis for City Council consideration.
CR&R Environmental Services (CR&R)
In the latest final offer, CR&R proposed the following new pricing and enhancement options:
Enhancement
Description
Lower Residential and Senior Rates
Standard Residential 96-Gallon three cart set reduced by $0.28, Senior 3-Cart 35-Gallon rate reduced by $8.94 Lower Commercial Rates
Standard Commercial rate (Trash 1x/Week Bin Service) reduced by $1.00 New Mobile Home Park Rate Structure
Rate structure specifically for mobile home parks at $18.66 per month and requires residents to utilize a 35-Gallon three cart set to qualify for this service Increased Road Improvement Investment
Unconditional infrastructure payment was increased to $4.25 million, to be paid upfront on July 1, 2027 Unlimited Multifamily Bulky-Item Collection Service
Multifamily unlimited monthly collection during peak move-in/move-out periods and on-call collection at no cost during non-peak times Republic Services
In the latest final offer, Republic Services proposed the following new pricing and enhancement options:
Enhancement
Description
Commercial Rate Reductions
Standard Commercial rate (Trash 1x/Week Bin Service) reduced by $0.74, Commercial service levels 2x-6x/week reduced by 0.65%, and Downtown Commercial rate (Three-Container 7x/Week Service) reduced by $0.36 Three-Tier Multifamily Rate Option
Tier 1: $30.42 per bundle per month with three-container cart service for 4 units or less Tier 2: $146.96 per bundle per month with three-container cart service for 5 units or more Tier 3: $520.31 per bundle per month serviced weekly with one 3-yard trash bin, one 3-yard recycling bin, and one 96-gallon organics cart $4 Million Investment Infrastructure and City Cost Recovery Conditional infrastructure payment was reduced to $4 million, any direct RFP-related expenses exceeding $75K would be reimbursed from this investment. Current RFP-related costs are estimated at $300,000, resulting in an estimated infrastructure payment of approximately $3.7 million Transition Plan
Staff communicated the State’s and the City’s SB 1383 transition plan expectations with all firms during the interview phase of the RFP process in January 2026. To achieve an effective and methodical outcome, the following order of the transition plan steps is the desired approach:
Customer Data Evaluation and Revision
SB 1383 Education and Outreach Campaign
Customer Service Level Assessment and Waivers
SB 1383 Compliant Container Exchange/Delivery
Citywide SB 1383 Collection Service Complete Rollout
CR&R provided a credible and specific plan, including biweekly City coordination, vehicles ordered the day after City Council approval, and Sustainability Team visits to every Multifamily and Commercial account by December 31, 2026.
Republic Services’ plan requires a more comprehensive and robust transition strategy. While the intent to implement an immediate or accelerated transition is well-intentioned, it does not align with the State’s and City’s expectations for an undertaking of this magnitude.
Upon contract award, staff would work closely with the selected firm to develop a comprehensive implementation plan that establishes a clear sequence of steps for a streamlined rollout. The plan would prioritize the community’s access to appropriate waste services while considering cost-effectiveness and minimizing disruption throughout the transition.
Revised RFP Timeline Schedule
The RFP timeline was adjusted to better align with the deliberation process and anticipated City Council direction. Key milestones, including the City Council Study Session and Final Recommendation meeting, were advanced to later dates to allow sufficient time for City Council review of internal documents, public engagement and remaining compliant with the State’s Corrective Action Plan (CAP) deadline. *Italicized sections indicate revised activities and dates Activity
Milestone Date
RFP Posted - Electronic Delivery
September 17, 2025
Mandatory Pre-Proposal 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 Presents Findings to Ad Hoc Committee
February 2, 2026
Prepare RFP Report Packet for City Council Review
Week of February 2, 2026
RFP Report Packet Available for City Council Review
February 9, 2026 – Contract Award
Follow-Up Evaluation with Ad Hoc Committee
February 24, 2026
Present Evaluation at City Council Study Session
April 14, 2026
Continue Evaluation at City Council Study Session
June 30, 2026
Host Community Open House Meetings
July 23 and 28, 2023
Continue City Council Selection Evaluation
September 15, 2026
Present Final Recommendation to City Council**
October 6, 2026
Finalize Agreement with Recommended Firm
October 12, 2026
Finalize Equipment Purchase and Roll-Out Plan
October 12, 2026
Present Finalized Agreement to City Council
October 20, 2026
Selected Firm Orders Equipment*
October 21, 2026
Roll Out of Commercial Program*
July 1, 2027
Roll Out of Residential Program*
July 1, 2027
*Firm timeline requirements for the City to meet the CAP deadline **Current timeline – October 6, 2026
CalRecycle Corrective Action Plan
City staff met with CalRecycle’s JACE Branch on June 8, 2026, to discuss delays in the CAP RFP schedule, prompting concerns about missed milestones and potential risk to the SB 1383 deadline. CalRecycle warned that continued delays could lead to cancellation of the CAP and a formal Compliance Review audit, which carries steep daily penalties, and later documented these concerns in a June 19, 2026 letter. On July 15, 2026, the City provided an update following the June 30 Council meeting, establishing a revised schedule that CalRecycle ultimately approved with expectations for expedited progress. Additional updates were provided after the September 15, 2026 Council meeting, confirming continued efforts and the decision to advance two firms in the RFP process. Staff continues to emphasize strict adherence to CAP milestones to maintain compliance and ensure sufficient time for full SB 1383 program implementation by July 1, 2027 Deliberation Priorities
City Council direction at this stage is essential to authorize the development of detailed scopes of work, rate structures, and service level deliberation needed to finalize contract terms. Timely action is necessary to maintain progress toward awarding and transitioning contracts in accordance with the State-mandated CAP timeline.
City Council should consider the following priorities:
Reasonable Pricing Structure Relative to Services Provided Service Quality and Reliability
Compliance and Regulatory Alignment
Local Economic Impacts
Long-Term Rate Stability
Community Engagement
Innovation, Infrastructure & Sustainability
Workforce Reliability, Minimizing the Risk of Labor Stoppages New Contract Transition Timeline for All Proposed Firms (i.e., Customer Data Evaluation, Customer Service Level Assessment, Equipment Purchases, SB 1383 Education and Outreach Campaign, Citywide SB 1383 Collection Service Rollout, including the transition and replacement of waste containers) The overarching objective of the procurement process is to secure regulatory compliance, operational reliability, cost-effective service delivery, and alignment with the City’s sustainability goals. Staff requests City Council direction to finalize service agreement terms with a selected provider for Solid Waste contract award.
Attachments:
Attachment 1 – PowerPoint Presentation
Attachment 2 – RFP Baseline Required Services
Attachment 3 – Draft Franchise Agreement
Attachment 4 – Final Comparative Analysis
Attachment 5 – CR&R Final Proposal
Attachment 6 – Republic Services Final Proposal
Attachment 7 – CalRecycle Letter
Attachment 8 – CalRecycle Fullerton CAP
cc: City Manager Eddie Manfro
Solid Waste RFP Selection
October 6, 2026 - Page PAGE \* MERGEFORMAT 2