Solid Waste Contract Performance
& Billing Audit Follow-Up
A review of corrective actions and billing audit resolution since the May 26, 2026 Council update.
Arlene Tieu – City of Rosemead Public Works Administrative Analyst Girard Mobley – MSW Consultants Senior Consultant
Stephen Herring – Republic Services General Manager
September 8, 2026
COUNCIL UPDATE
Agenda
01 Bulky Item Pick Up, Graffiti on Waste Containers, and Bus Shelter Collection Services
Service performance updates
02 Billing Audit Resolution
Final reimbursement amount and recommendations
03 Remediation Plan and Next Steps
Reimbursement plan and options to consider
CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
2 SINCE MAY 26, 2026
Performance Snapshot
99%
BULKY ITEM CALL-INS
within 9-day contractual timeframe
100%
GRAFFITI EXCHANGES
within 5-day contractual timeframe
13 HIGH-USE BUS SHELTERS
locations increased to 5 collections/week
The July review shows measurable improvement in the areas previously identified for corrective action.
CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
3 01 | PERFORMANCE
Bulky Item Collection
619
RESIDENT CALL-IN
requests during review period
8 FIELD REPORTS
additional bulky items reported by
Republic staff
WITHIN 9-DAY TIMEFRAME
97%
99%
May Review July Review
2-percent improvement from May's 97%
627
TOTAL BULKY ITEM
REPORTS
Combined resident call-ins and fieldidentified items during the review period.
Daily reports provide the City with better visibility into scheduled requests and bulky items identified in the field.
CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
4 01 | PERFORMANCE
Abandoned Bulky Items
230
CRM REQUESTS
95%
CLOSED WITHIN 2 DAYS
NEW CITY PROCESS
Public Works and Code Enforcement developed a
streamlined process for identifying, tagging, and citing residents who leave bulky items in the public right-of-way.
Current CRM data does not provide sufficient information to calculate compliance specifically against the onebusiness-day collection requirement.
CONTRACT BENCHMARK: 1 BUSINESS DAY
CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
71%
95%
May Review July Review
% ADDRESSED WITHIN 2 DAYS
5 01 | PERFORMANCE
Graffiti on Waste Containers
19 REPUBLIC-REPORTED
containers for exchange
100%
COMPLETED WITHIN 4 DAYS
new field-response process
3 CITY CRM REQUESTS
all addressed within 5 days
NEW FIELD-RESPONSE PROCESS
Sustainability Advisors equipped with approved spray paint.
Minor touch-ups measuring 12 inches by 12 inches may be completed in the field when conditions allow for the work to be performed safely.
More extensive graffiti is referred to Operations for container exchange.
% WITHIN 5 DAYS
43%
100%
May Review July Review
MAY → JULY
43% → 100%
of graffiti container exchanges
completed within 5-day
requirement
CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
6 01 | PERFORMANCE
Bus Shelter Maintenance
79 ACTIVE SHELTERS
verified by audit conducted by Republic Services
13 HIGH-USE SHELTERS
now at 5 collections/week
3×/week
MINIMUM FREQUENCY
required by franchise agreement
Republic Services created service accounts for each active shelter to improve tracking and re-evaluated collection frequency based on actual use.
GOAL
Align service frequency with high-traffic locations and reduce overflowing receptacles.
CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
9 13
Previous
Current
HIGH-USE SHELTER COLLECTIONS - 5x / WEEK
7 02 | FINAL RESOLUTION
Billing Audit: Final Amounts
Billing Item Audit Finding Final Reimbursement Reason for Change Waivered accounts charged non-waivered rate $46,950.55 $12,868.87 Additional invoicing showed that the error was limited to a 6-month period
Additional 64-gallon organics cart charges $149,515.80 $67,498.78 Additional evidence of organics cart being
delivered was provided, indicating that carts
were previously on-site for some accounts
Incorrect “Extra Yards” rate $13,295.67 $13,295.67 No changes Late fee charges $30,977.92 $30,977.92 No changes
Total $240,739.94 $124,641.24
The $35,000 reimbursement for the full audit cost and the $1,300 administrative penalty for non-compliant containers is separate from the billing-related reimbursement shown above.
CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
8 02 | FINAL RESOLUTION
Resolution to Audit Findings
$240,739.94
ORIGINAL AUDIT FINDING
billing discrepancies and overcharges
$124,641.24
FINAL BILLING REIMBURSEMENT
after additional documentation and
analysis
$36,300
PAYMENTS TO CITY
cost of billing audit and penalty for noncompliant containers
TOTAL CITY REIMBURSEMENT
$160,941.24
Final resolution
Based on supporting documentation provided by
Republic Services, the audit findings were adjusted as
appropriate, and the resulting amounts were agreed
upon by the City and Republic Services.
$124,641.24 billing reimbursement + $36,300 payment to City CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
9 02 | FINAL RESOLUTION
Recommendations
MSW Consultants and City staff recommends the following measures to improve Republic Services' billing process.
CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
1 2
3 3
Perform scheduled Quality Assurance/Quality Control (QA/QC) reviews of rates and charges within its billing system using a standardized checklist approved by the City and provide associated documentation quarterly.
Establish a written process to capture and maintain City-approved organics service waivers to ensure correct rates are charged for these accounts.
Implement a written procedure to review additional service rates, including overage fees, additional organics charges, and late fees, to ensure they are billed in accordance with the franchise agreement.
10 03 | REMEDIATION PLAN
Next Steps for Credits
End of 2026
CREDITS SUBSTANTIALLY COMPLETE
most customer credits processed
60 Days
PAYMENT ISSUANCE
payments to the City for audit cost and
penalties completed
July 2027
ALL FINDINGS ADDRESSED
all customer credits processed and
findings addressed
ADDITIONAL RESEARCH REQUIRED
Some customers will require a great deal of research if they no longer are in Rosemead or no longer have an active account.
CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
11 03 | REMEDIATION PLAN
Measures to Ensure Correct Billing
1 Annual review of all rates in the billing system to confirm accuracy. 2 Full audit of the first billing cycle after each annual price increase to ensure accuracy.
3 Continued partnership with City staff for regular reviews and providing any data required to ensure accuracy.
CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
Republic Services proposes the following measures to ensure correct billing moving forward. 12 CLOSING
Conclusion & Next Steps
01 Measured improvement
Bulky item pickup, graffiti removal, and bus shelter collection improved following corrective measures. 02 Billing audit resolved
Republic Services will reimburse the City $160,941.24, including $124,641.24 for billing discrepancies and $36,300 for the audit cost and administrative penalties. 03 Ongoing oversight
Staff will continue monitoring Republic Services' performance, billing practices, and compliance with the Franchise Agreement. MSW Consultants will conduct quarterly reviews of Republic Services’ billing to monitor ongoing billing accuracy and contract compliance.
CITY OF ROSEMEAD | PUBLIC WORKS SEPTEMBER 8, 2026
1 13
Questions & Discussion