City Council Staff Report Page 1 of 5 June 9, 2026
Staff Report
Agenda Item No. 4.9
DATE: June 9, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Approving the Side Letter Between the City of Union City and Allied Waste Services of North America, LLC, Regarding the July 2025 Solid Waste Collection Service Disruptions, Authorizing Customer Service Credits and Reimbursement of City Costs
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt the attached resolution approving the Side Letter between the City of Union City and Allied Waste Services of North America, LLC (“Allied” dba “Republic Services”) regarding the July 2025 solid waste collection service disruptions, authorizing customer service credits and reimbursement of City costs, and authorizing the City Manager to execute the agreement.
In July 2025, labor-related disruptions from third-party employee picketing affected portions of Republic Services’ solid waste, recycling, and organics collection operations serving Union City residents and businesses. Collection delays occurred between July 8 and July 18, 2025, affecting single-family residential, multi-family, and commercial customers throughout portions of the City.
Following the service disruptions, City staff engaged in extensive discussions with Republic Services regarding customer impacts, operational response measures, and appropriate customer compensation. As a result of those negotiations, Republic Services and the City have developed the attached Side Letter establishing a negotiated settlement framework that includes customer service credits for impacted customers and reimbursement to the City for costs incurred in responding to the disruptions.
The proposed settlement includes:
• Automatic service credits for single-family residential customers based on two weeks of service, for a total of $110,815;
• Automatic service credits for eligible multi-family and commercial customers based on one week of service, for a total amount of $20,280 and $82,811, respectively; • Reimbursement to the City in the amount of $35,000 for City administrative, staff, Agenda Item No. 4.9
City Council Staff Report Page 2 of 5 June 9, 2026
consulting, and legal costs associated with managing the service disruption response; and
• Defined implementation schedules and reporting obligations for Republic Services.
The proposed agreement represents a negotiated resolution intended to compensate affected customers, reimburse the City for response costs, and formally resolve matters related to the July 2025 service disruptions.
STRATEGIC PLAN ALIGNMENT
This report is in alignment with the following City Council priority:
Goal D: Environmental Sustainability and Infrastructure Strategy 13: Continue monitoring the Collection Services Franchise Agreement Contractors' assistance with organics regulations and waste diversion compliance.
BACKGROUND
Republic Services currently provides solid waste, recycling, and organics collection services within Union City pursuant to the Amended and Restated Franchise Agreement effective July 1, 2025. Under the Franchise Agreement, Republic Services is responsible for providing collection services to residential, commercial, and multi-family customers within the City.
Beginning on July 8, 2025, labor-related actions involving employees associated with another Republic Services subsidiary resulted in operational disruptions impacting collection operations throughout portions of Northern California, including Union City.
During the disruption period extending through July 18, 2025, portions of Republic Services’ workforce did not report to work and/or did not cross active picket lines, resulting in delayed collection services for portions of the City’s customers.
Although Republic Services continued to provide disposal and processing services throughout the disruption period, collection delays led to missed or delayed residential, commercial, and multi-family collections, resulting in significant customer complaints, operational challenges, and increased coordination efforts by City staff.
Throughout the disruption period, City staff worked closely with Republic Services management to:
Monitor collection recovery progress;
Coordinate customer communications;
Address priority service concerns;
Manage customer complaints;
Evaluate operational impacts;
Coordinate legal and contractual review; and
Develop an appropriate customer compensation framework.
Following several months of discussions and negotiations, the parties formally prepared the attached Side Letter to resolve issues arising from the July 2025 service disruptions.
Agenda Item No. 4.9
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DISCUSSION
Single-Family Residential Customer Credits
Under the proposed settlement agreement, Republic Services will provide single-family residential customers with a two-week service credit associated with the collection service component of residential service rates during the disruption period.
The proposed single-family residential customer credits are estimated at approximately $110,815 and are based on:
Cart size;
Service level;
Collection service component of the residential rate structure; Additional container services; and
Applicable senior and low-income discount programs.
The single-family residential two-week service credit is based upon cart size and customer rate classification. Customers receiving backyard service or additional container services will receive proportional adjustments consistent with the approved methodology.
Republic Services will begin processing residential customer credits beginning with the June 2026 billing cycle and complete all credits no later than August 31, 2026. Customers who previously deducted anticipated credits and incurred late fees will also receive reimbursement for those fees.
Multi-Family and Commercial Customer Credits
The proposed agreement also includes a one-week customer credit for eligible multifamily and commercial customers affected by the collection disruptions.
Multi-family and Commercial one-week customer service credits are based upon the collection service component of monthly service rates. The methodology recognizes that disposal and processing services continued during the disruption period while collection services were delayed.
The proposed multi-family and commercial customer credits are estimated at $20,280 and $82,811, respectively.
The agreement establishes a credit formula equal to approximately 13.5 percent of the affected customer’s monthly service bill, excluding disposal and processing fees. Roll-off customers billed on a per-haul basis are generally excluded from reimbursement where no charges were incurred for unperformed services.
Republic Services will complete the calculation and implementation of multi-family and commercial one-week customer service credits within 60 days following execution of the agreement.
Agenda Item No. 4.9
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Reimbursement of City Costs
In addition to customer credits, Republic Services has agreed to reimburse the City for $35,000 in costs incurred in responding to the service disruptions. These costs include:
Staff time;
Administrative coordination;
Customer service response efforts;
Consulting support; and
Legal review and coordination activities.
The reimbursement will be processed through the monthly franchise reconciliation process following execution of the agreement.
Settlement and Release Provisions
The proposed Side Letter establishes a negotiated settlement and release framework resolving claims associated with the July 2025 service disruptions.
The agreement provides that the customer credits and reimbursement payments constitute a full and final resolution of matters arising from the collection disruptions between July 8 and July 18, 2025, including potential claims relating to service performance and related contractual issues.
City staff and the City Attorney’s Office believe the proposed settlement provides a reasonable and practical resolution that:
Provides direct customer compensation;
Reimburses City response costs;
Avoids extended disputes or litigation;
Establishes clear implementation timelines; and
Allows the City and Republic Services to continue focusing on ongoing service improvements and operational stability.
FISCAL IMPACT
The proposed agreement does not require an appropriation of additional City funds.
Republic Services will provide automatic and direct customer credits to affected customers and will reimburse the City in the amount of $35,000 for City-incurred response costs associated with the July 2025 service disruptions.
The reimbursement will offset City staff, consulting, administrative, and legal expenditures incurred in responding to the disruptions.
Agenda Item No. 4.9
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RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution approving the Side Letter between the City of Union City and Allied Waste Services of North America, LLC (“Allied” dba “Republic Services”) regarding the July 2025 solid waste collection service disruptions, authorizing customer service credits and reimbursement of City costs, and authorizing the City Manager to execute the agreement.
Prepared by: Todd Storti, Recycling and Solid Waste Program Manager Submitted by: Jennifer Phan, Deputy City Manager
Attachments
1. Draft Resolution
2. Exhibit 1 – Side Letter