1504 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com May 11, 2026
Mr. Todd Storti
Recycling and Solid Waste Program Manager
City of Union City
34009 Alvarado‑Niles Rd, Union City, CA, 94587
submitted via email: [email protected]
SUBJECT: Master Services Agreement for Fiscal Year (FY) 2026-27 – R3 Proposal Dear Mr. Storti,
R3 Consulting Group, Inc. (R3) is pleased to submit the attached proposal to the City of Union City (City) for Master Services Agreement for various consulting services for FY 2026-27.
Over the past year, R3 has worked with the City to provide staff augmentation in the Solid Waste and Recycling Manager and Sustainability Analyst roles. We have worked cross-departments to better understand programs, document processes where possible, and feel confident in our ability to support the City and Solid Waste Division in FY 2026-27. This engagement primarily provides consulting, financial oversight, and regulatory support services to assist the City in managing its solid waste franchise agreements with Republic Services, Tri-CED, and BLT. The work is intended to ensure that all franchise agreements are properly administered, that franchised haulers meet their contractual obligations, and that all revenues owed to the City are accurate and fully received. Our team will also support the City in maintaining compliance with State of California requirements, including CalRecycle, SB 1383, AB 939, and StopWaste programs. In addition, the R3 will provide guidance to improve processes, identify risks, and strengthen overall program performance.
Project Team
Claire Wilson, Sr. Managing Consultant, will serve as Project Lead and primary point of contact for this engagement. Claire will be supported by Scott Hanin, Principal, who will provide strategic direction and assistance as needed. Sarah Koplowicz, Managing Consultant, and Gauvri Nathwani, Consultant, will also provide direct support throughout this engagement. * * * * *
Thank you for your continued partnership and the opportunity to be of service in your community. If you have any questions or need additional information, please contact us.
Sincerely,
Claire Wilson | Sr. Managing Consultant Scott Hanin | Principal R3 Consulting Group, Inc. R3 Consulting Group, Inc.
707.480.0753 | [email protected] 510.812.7144 | [email protected]
1. SCOPE OF WORK
City of Union City | Master Services Agreement, FY 26-27 1 Project Understanding
The City’s solid waste staffing needs cover a range of tasks that support contract administration and compliance for two franchise agreements and a disposal agreement. As such, R3 will provide expert knowledge and technical assistance to aid in program development and success in all areas of the City’s solid waste management program.
R3’s ultimate goal for this engagement is to provide a turn-key solution to the City’s solid waste management program, in collaboration with City staff. We will verify that the City’s franchised haulers operate safely and effectively, that they comply with their contractual obligations, and that the City complies with all relevant laws and regulations. As the City’s consultant, R3 will assist in maintaining the City’s compliance with the state by preparing required reports, communicating with CalRecycle, training City staff on processes and procedures, and performing all obligations as set by the governing entities.
R3 will also support the City in developing and implementation changes to programs, including its Construction and Demolition (C&D) ordinance and program as well as its Foodware Ordinance.
Scope of Work
R3 will provide ongoing support in contract administration, financial monitoring, revenue collection, billing issues, regulatory compliance, and program oversight. We will work closely with City staff, the City’s franchise haulers, and regulatory agencies to help ensure the City’s solid waste system operates effectively, transparently, and in full compliance with all applicable requirements. All tasks will be conducted as requested by the City. Any deliverables will be agreed to by R3 and the City.
Task 1 Franchise Agreement Oversight
As part of this task, R3 will evaluate and monitor compliance with franchise agreements for Republic Services, Tri-CED, and BLT. This includes developing and maintaining a structured compliance tracking system, reviewing operational performance metrics, and identifying any deficiencies, risks, or areas of non-compliance. R3 will provide written findings upon request and support the City in implementing corrective actions, including follow-up monitoring to ensure resolution. R3 will schedule monthly meetings with Republic and Tri-CED and prepare agenda items to review contract compliance components, tonnage and diversion reports, and any current and upcoming solid waste activities.
These activities include but are not limited to:
》 Reviewing monthly franchise fee payments and all associated financial reports submitted by the haulers to verify accuracy, completeness, and proper calculation of revenues owed to the City. 》 Review monthly and quarterly reporting submitted by Republic, Tri-CED, and BLT for anomalies, noncompliance with the Franchise Agreements, and other performance metrics. 》 Financial performance tracking and identification of inconsistencies in revenues and expenses related to solid waste.
》 Preparing agendas for monthly meetings with Republic and Tri-CED and following up with action items after meetings.
》 Provide periodic summaries and recommendations to support informed decision-making.
Task 2 Annual Rate Review and Compensation Analysis
R3 will review and analyze annual rate and compensation applications submitted by Republic Services, Tri-CED, and BLT to ensure completeness, accuracy, and compliance with franchise agreement methodologies. R3 will build off the work and workbooks developed from review of Republic Services, TriCED, and BLT’s submissions for rates effective July 1, 2026.
City of Union City | Master Services Agreement, FY 26-27 2 These activities include but are not limited to:
》 Meet with hauler representatives to review submitted data, assumptions, and supporting documentation.
》 Prepare detailed reports of findings for each application, including:
》 Determination of actual cost of operations
》 Calculation of adjusted and allowable costs
》 Analysis of historical and projected revenues and expenses 》 Provide clear recommendations to City leadership regarding appropriate rate adjustments. 》 Support with City Council meeting adoption (as needed).
Task 3 Continuation of Republic Billing Audit
R3 will continue supporting the City with completing the remainder of the Billing Audit. In FY 2025-26, Republic Services began billing most of the Union City residential customers for the first time. After supporting the City through the implementation of this new billing system, errors were identified by R3 and City staff. R3 received direction to pause the billing audit due to Republic Services staff transitions and the unanticipated need to provide staff augmentation services for two positions for three months. As such, R3 will complete any remaining tasks of the Billing Audit in FY 2026-27.
To ensure accurate account collections and payments of fees to the City R3 will perform the following tasks for this fiscal year:
》 Meet with Republic & Tri-CED (as necessary) Financial Staff to review approaches and request billing information.
》 Determine if current rates have been properly and accurately posted to the appropriate service code in those billing/customer service systems and charged appropriately. Perform periodic revenue reconciliation based on billing frequency.
》 Review the detailed customer service census data in the billing/customer service systems maintained by the franchisees for the first three quarters of the fiscal year. 》 Review billing schedules in relation to cash collections and delinquent payments to ensure proper cash management.
》 Perform an independent calculation of fees owed and compare fees remitted by Republic Services to supporting documentation including Tri-Ced revenues and payments due are accurate. 》 Review the invoices to the City and determine that the collection of franchise and other fees are done accurately and remitted to the City in a timely manner. 》 Work with Finance in real time to make changes as soon as they are discovered. Provide regular reports outlining our findings and recommendations for any improvements to the billing process.
Task 4 Regulatory Compliance
R3 has assisted many jurisdictions in monitoring and planning for changes in solid waste programs that are needed under the SB 1383 regulations and other solid waste legislation. R3 will support the City in meeting compliance with State Laws AB 939, AB 341, AB 1826, SB 1383, and SB 54. On-going support for the following activities will help to ensure compliance with solid waste legislation and reporting including the City’s impending Jurisdiction and Agency Compliance and Enforcement (JACE) review in 2026.
These activities include but are not limited to:
》 Support staff in management of grant-funded programs including submitting required documentation and tracking grant expenditure for reimbursement through CalRecycle OWR4 grant monies. 》 Support staff in maintaining the City’s Implementation Record for SB 1383 including coordination with various City Departments.
City of Union City | Master Services Agreement, FY 26-27 3 》 Support the City in its goal to achieve 100% compliance of its Recovered Organic Waste Product (ROWP) target through monitoring purchases of compost and mulch and through its franchise agreement with Republic, including verification that purchases meets SB 1383 standards. 》 Support preparation of all required State reporting, including the Electronic Annual Report (EAR) and any additional reporting required by CalRecycle or StopWaste (e.g., Measure D funding). 》 Coordinate and communicate with the City’s local assistance and market development (LAMD) CalRecycle representatives, StopWaste, and City staff, including participation in meetings, site visits, and compliance reviews as requested by staff.
》 Provide regulatory compliance support related to SB 54, including evaluating acceptable materials, identifying impacts to the City’s collection and processing systems, and recommending updates to franchise agreements and programs to align with producer responsibility requirements. 》 Assist the City in responding to regulatory inquiries including a JACE review or other enforcement actions.
Task 5 Solid Waste Program Support
R3 has assisted the City in the many facets of its solid waste program. The proposed activities include maintenance of current activities including public education and outreach from the franchised haulers, management of the City’s C&D program through Green Halo support, building permit reviews, StopWaste’s Measure D audit, and quarterly Recyclist uploads. R3 will also support the City in new activities for FY 2026-27 including evaluation and updating the City’s C&D ordinance and program, foodware ordinance, and revamp of the City’s website. To ensure consistency and effective communication, R3 will meet with the City at least once per week to coordinate weekly activities and track agenda items and notes in a shared document.
These activities include but are not limited to:
》 Support the City’s C&D debris program by reviewing project applications, waste management plans, and compliance with the City’s ordinance and CALGreen requirements. These activities may include:
》 Review and verify project data within Green Halo Systems for project plans and reports including materials, facilities, weight tickets, and diversion calculations. 》 Communicate directly with applicants to resolve discrepancies, request corrections, and ensure compliance.
》 Track projects in the City’s C&D Waste Management Log and coordinate with Building staff as needed.
》 Identify non-compliance and recommend enforcement actions consistent with City policy. 》 Assist the City in revising, and updating the C&D Ordinance to reflect current regulations, including evaluating the transition from a deposit-based system to a final fee or performance-based compliance structure.
》 Support the City in review of upcoming projects and building permits for solid waste enclosures, planned service levels, use of compactors, and attendance at DRC meetings if requested. 》 Review public education and outreach materials prepared by Republic and Tri-CED prior to distribution, as requested by the City. Ensure materials are accurate, consistent with City standards, and aligned with franchise agreement requirements, with emphasis on contamination reduction, service clarity, and regulatory compliance.
》 Provide ongoing coordination, technical support, and training as requested to City staff, including the Sustainability Analyst, to ensure alignment with program goals, regulatory requirements, and implementation schedules. R3 will participate in weekly meetings with staff and provide timely responses to staff requests.
》 Assist with audit-related activities, including Measure D audits and other financial or programmatic audits. Prepare and organize supporting documentation, respond to auditor requests, and help ensure successful audit outcomes.
City of Union City | Master Services Agreement, FY 26-27 4 》 Support the City in quarterly updates to Recyclist including requesting subscription information from Republic and Tri-CED, reviewing data, submitting final data to Recyclist, and coordination with Recyclist staff for successful updates.
》 Provide strategic guidance and technical support for the comprehensive redesign of the City’s Solid Waste and Recycling website. This includes development of content structure, improved user experience, and integration of performance dashboards. These activities may include:
》 Coordination with franchised haulers to obtain and integrate data related to service levels, diversion performance, contamination rates, and participation metrics. 》 Supporting development of dashboard concepts, data flows, and reporting formats that improve transparency and public access to information.
》 Assist the City in reviewing, updating, and expanding its Foodware Ordinances to align with current and anticipated State regulations. This effort includes evaluating current pathways jurisdictions are employing to reduce single-use plastics, identifying opportunities to expand reusable and compostable requirements within the City of Union City, developing implementable policy recommendations, and drafting policy language. If adopted, R3 will support the City with implementation of its adopted program if passed in FY 2026-27, including development of outreach materials, implementations timelines, and other requested support.
Project Deliverable
R3 will provide regular written summaries and reports documenting compliance status, financial findings, and program performance. Cadence and subject matter will be agreed to by City staff and R3. Such deliverables will include periodic compliance updates, billing audit results, revenue reconciliation summaries, and an annual rate review report with recommendations. R3 will also provide supporting documentation for State reporting and maintain records necessary for audits and compliance reviews.
2. PROJECT BUDGET
City of Union City | Master Services Agreement, FY 26-27 5 R3 proposes completing the project for a total fee of $156,000. Table 1, below, shows the total cost breakdown by task. Additional consulting services beyond those proposed will be charged at the standard rates shown in Table 2, below. Fees for completed work will be billed monthly at the first of each month, for the preceding month, and are due within 30 days of the invoice date.
Table 1: Fee Breakdown
TASK HOURS FEE
1. Franchise Agreement Oversight 50 $ 15,000
2. Annual Rate Review and Compensation Analysis 30 $ 8,000
3. Billing Audit 100 $ 27,000
4. Regulatory Compliance 50 $ 12,000
5. Solid Waste Program Support 325 $ 75,000
Contingency for other, as-needed support 70 $ 19,000
TOTAL 625 $ 156,000
Table 2: Standard Rates FY 2026-27
CLASSIFICATION FY 26-27 RATES
Principal / Sr. Director $ 360 per hour
Director $ 320 per hour
Sr. Managing Consultant $ 280 per hour
Managing Consultant $ 255 per hour
Sr. Consultant $ 230 per hour
Consultant $ 210 per hour
Associate Consultant $ 195 per hour
Expert Witness 1.5x Rates Listed Above
REIMBURSABLE COSTS
Consultants/Subcontractors Cost plus 10%
Lodging and meals Direct cost
Travel - Private or company car At Current Federal Rate Travel - Other Direct cost
Delivery and other expenses Direct cost