City Council Staff Report Page 1 of 3 June 9, 2026
Staff Report
Agenda Item No. 4.8
DATE: June 9, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Approving a Consulting Services Agreement with R3 Consulting Group, Inc., in a Not-To-Exceed Amount of $156,000, Through June 30, 2027, for Consulting Services, and Authorizing the City Manager to Execute the Agreement in a Form Approved by the City Attorney
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt the attached resolution (Attachment 1) approving a Consulting Services Agreement with R3 Consulting Group, Inc. for Fiscal Year (FY) 2026-2027 solid waste, recycling, regulatory compliance, franchise administration, billing audit, and program support services in an amount not to exceed $156,000 and authorizing the City Manager to execute the agreement.
STRATEGIC PLAN ALIGNMENT
This report is in alignment with the following City Council priorities:
Goal D: Environmental Sustainability and Infrastructure Strategy 12: Coordinate with City departments, commercial and residential customers to implement the requirements of state organics and food recovery legislation.
Strategy 13: Continue monitoring the Collection Services Franchise Agreement Contractors' assistance with organics regulations and waste diversion compliance.
BACKGROUND
The City of Union City continues to manage increasingly complex solid waste, recycling, sustainability, and regulatory compliance responsibilities associated with State mandates, franchise agreement administration, rate review, financial oversight, and program implementation. These responsibilities include administration and oversight of agreements and programs associated with Republic Services, Tri-CED Community Recycling, BLT Enterprises, CalRecycle regulations, SB 1383 compliance, Construction Agenda Item No. 4.8
City Council Staff Report Page 2 of 3 June 9, 2026
and Demolition (“C&D”) debris management, StopWaste requirements, and related solid waste initiatives – all of which require specialized technical and financial expertise.
R3 Consulting Group, Inc. provided consulting and staff augmentation services during periods when the Recycling and Solid Waste Division had one or two vacancies over the past fiscal year. R3 Consulting Group assisted the City with franchise agreement oversight, financial reconciliation, billing audit activities, annual rate reviews, regulatory compliance support, public outreach coordination, and program implementation support.
The proposed FY 2026-2027 Master Services Agreement continues these services and provides ongoing support to the City’s Solid Waste and Recycling Division. The proposed agreement includes oversight and compliance monitoring of franchise agreements, annual rate review and compensation analysis, continuation of the Republic Services billing audit, SB 1383 and CalRecycle regulatory compliance support, C&D debris recycling program support, updating the City’s foodware ordinance, and other ongoing solid waste program support.
The proposed agreement establishes a total not-to-exceed compensation amount of $156,000 for FY 2026-2027.
DISCUSSION
Under the proposed agreement, R3 Consulting Group, Inc. will provide technical consulting and operational support services to assist the City in administration and oversight of its solid waste and recycling programs. The agreement is intended to provide a comprehensive support framework for regulatory compliance, operational oversight, financial monitoring, and program implementation.
The proposed agreement includes five primary service categories, including Franchise Agreement Oversight, Annual Rate Review and Compensation Analysis, Continuation of Republic Billing Audit, Regulatory Compliance Support, and Solid Waste Program Support. R3 Consulting Group, Inc. will continue to provide support to City staff, including the functions of the Sustainability Analyst role, until the position is filled. Additional planned work, at the direction of City staff, will include:
• Assistance with administration and oversight of franchise agreements associated with Republic Services, Tri-CED, and BLT Enterprises.
• Providing annual rate review and compensation analysis support associated with Republic Services, Tri-CED, and BLT compensation applications. • Continuation of the Republic Services billing audit initiated during FY 2025-2026.
Following the implementation of the Republic’s residential billing system, City staff and R3 Consulting Group, Inc. identified inconsistencies and billing concerns that require additional reconciliation and review. The analysis helps ensure accurate billing practices and the appropriate collection and remittance of franchise fees. • Assistance with maintaining compliance with State solid waste and recycling regulations, namely SB 1383 and SB 54, including maintenance of the City’s implementation record and support during compliance reviews. • Providing, as requested, operational support services associated with the City’s solid waste and recycling programs, including C&D debris program administration, Agenda Item No. 4.8
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Green Halo review and verification, permit and diversion review support; Public outreach material review; Foodware ordinance support; Coordination with franchised haulers and City staff.
FISCAL IMPACT
Sufficient funds are available within the FY 2026-2027 Adopted Budget in the Solid Waste Assessment Fund under Professional/Consulting, Account No. 203-12301-54110, to support the proposed agreement.
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution approving a Consulting Services Agreement with R3 Consulting Group, Inc., in a not-to-exceed amount of $156,000, through June 30, 2026, for Consulting Services, and authorizing the City Manager to execute the Agreement in a form approved by the City Attorney.
Prepared by: Todd Storti, Recycling and Solid Waste Program Manager Submitted by: Jennifer Phan, Deputy City Manager
Attachments
1. Draft Resolution
2. Exhibit A – R3 Consulting Group, Inc. FY 2026-2027 Master Services Agreement Proposal