SIDE LETTER AGREEMENT
REGARDING JULY 2025 SERVICE DISRUPTION CUSTOMER CREDITS AND
SETTLEMENT
Date: On or after June 9, 2026
The Parties:
City of Union City
Allied Waste Services of North America, LLC
Subject:
Side Letter Agreement to the Amended and Restated Franchise Agreement Regarding July 2025 Collection Service Disruptions
CONTENT
This Side Letter Agreement (“Agreement”) to the Amended and Restated Franchise Agreement between the City of Union City (“City”) and Allied Waste Services of North America, LLC (“Republic” or “Allied”) dated July 1, 2025 (“Franchise Agreement”), is entered into as of June 9, 2026 (“Effective Date”), to memorialize the agreement reached regarding collection service disruptions occurring between July 8, 2025 and July 18, 2025 (“Dispute Period”).
RECITALS
1. Republic provides solid waste, recycling, and organics collection services within the City pursuant to the Franchise Agreement.
2. During the Dispute Period, some of Republic’s employees providing collection services in the City elected not to report to work and/or not to cross picket lines established by employees of an affiliate of Republic.
3. In recognition of the annoyance and inconvenience caused by the delay in collection services for customers in the City in July 2025, Republic has offered to provide credits to its customers in the City pursuant to this Agreement.
1. The City and Republic desire to resolve matters associated with the Dispute Period, including customer service credits, reimbursement of City costs, and related claims arising from the service disruptions.
AGREEMENT AND RELEASE
NOW, THEREFORE, the City and Republic agree as follows:
1. Residential Customer Credits
For all residential customers in the City, Allied will credit each of these customers for the collection services portion of their bills (which is a separate service component from the processing and disposal of solid waste, recyclables, and organics—and which later service component was provided to all residential customers even though the collection of these materials was delayed) in the amounts detailed in Exhibit A, Table 1.
The estimated total credit for residential customers for base scheduled service is $110,815 as calculated in Exhibit A. Where applicable, the credits provided to an individual customer will include additional cans and backyard service credit consistent with the adjustment schedule provided in Exhibit A. Customers who deducted the anticipated credit will be credited for any late fees assessed by Allied.
Allied will commence processing residential customer credits starting with Allied’s billing cycle on June 28, 2026 and continue until all residential customers who were subscribing to Allied’s services during the month of July 2025 have received the agreed-upon credits. All credits will be provided to residential customers no later than August 31,2026.
2. Commercial and Multi-Family Customer Credits
Allied will credit each commercial and multi-family customer in the City for the disruption of collection services based on the formula and calculations described in the attached Exhibit B and will include credits for each type of service. The estimated total credit for commercial customers is $82,811. The estimated total credit for multi-family customers is $20,280. These estimates include both the monthly service rates and the push-pull and lock-unlock service rates. Allied will credit customers based on the portion of the scheduled service in effect from July 8-July 18, 2025.
To implement this credit process, Allied agrees to calculate the credits and make all appropriate adjustments within 60 days of execution of this Agreement. These credits will be approximately 13.5% of the monthly bill and will exclude disposal and related processing fees. Commercial and multi-family customers who deducted the anticipated credit will also be credited for any late fees assessed by Allied. Roll-off customers in the City are billed per haul and, therefore, were not charged for services not rendered during the strike period. Roll-off customers whose total cost for non-hazardous solid waste disposal for July 2025 did not exceed their average monthly bill amount will not be eligible for reimbursement.
3. Reimbursement of City Costs
Republic shall reimburse the City in the amount of Thirty-Five Thousand Dollars ($35,000) for City costs associated with responding to the July 2025 service disruptions, including staff, administrative, consulting, and legal costs.
Payment shall be made through the monthly franchise reconciliation process following execution of this Agreement.
4. Resolution of Claims
The City agrees to release and discharge Allied and its affiliates from any claims arising from or related to the collection service disruptions that occurred in the City during the Dispute Period of July 8 through July 18, 2025, including but not limited to any claims for liquidated damages, other fees, or breach of the Franchise Agreement, arising from or related to the July 2025 service disruptions during the Dispute Period.
The City and Allied acknowledge that this Agreement represents a settlement and release of all claims related to the July 2025 service disruptions and the abovedescribed credits allowed on Allied’s billings and agree that the parties’ performance under this Agreement is not to constitute or be interpreted as an admission of any liability or wrongdoing whatsoever by any party to this Agreement.
5. Entire Agreement
This Agreement, including the recitals, constitutes the entire agreement and understanding of the City and Allied and supersedes all prior negotiations and/or agreements, proposed or otherwise, written or oral, concerning the subject matter hereof. Each Party acknowledges that in entering into this Agreement, it has not relied on any promise, representation, or warranty not contained in this Agreement.
EACH OF THE PARTIES CERTIFIES THAT IT HAS READ THIS AGREEMENT AND
FULLY UNDERSTANDS AND AGREES TO EACH OF THE ABOVE TERMS, CONDITIONS, AND PROVISIONS. EACH SIGNATORY TO THIS AGREEMENT
REPRESENTS AND WARRANTS THAT HE OR SHE IS AUTHORIZED TO EXECUTE
THIS AGREEMENT ON BEHALF OF THE PARTY FOR WHICH HE OR SHE EXECUTED THE AGREEMENT.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set forth below.
ALLIED WASTE SERVICES OF NORTH AMERICA, LLC
Date:
Yasser Brenes
Area President
CITY OF UNION CITY
Date:
Joan Malloy
City Manager
Exhibit A
Residential Calculations
Exhibit B
Commercial Calculations