414 13th Street, Suite 450, Oakland, CA 94612 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com Background
R3 Consulting Group, Inc. (R3) was engaged by the City of Union City (City) to provide a review of the Fiscal Year (FY) 2026-27 rate adjustment application provided by its contracted solid waste services providers, Republic Services (Republic) and Tri-CED Community Recycling (Tri-CED). The City has two exclusive Franchise Agreements (Agreements); one with Republic for garbage, recycling (in bins), and organic waste1 and one with Tri-CED for recycling in carts. Republic provides billing services for both haulers on a quarterly basis for residential customers and monthly for multi-family and commercial customers. This is the first rate adjustment in the City’s new Agreements with both Republic and Tri-CED.
The Agreements include the terms and conditions of Sections 11.2 and 11.3 of describing the methodology for annual rate adjustments.
Both haulers are required to submit the applications to the City on or before March 1, 2026, so that the City has time to review them and notify the haulers regarding the outcome of the Index-Based Rate Adjustment to the rates effective July 1, 2026. If Republic or Tri-CED does not submit the request for a rate adjustment to the City by March 1, the rate adjustment is waived per the Agreements. Republic and Tri-CED submitted their respective rate adjustment requests on February 27, 2026.
Summary of Findings
R3 reviewed the mathematical calculations and supporting documentation submitted by Republic and TriCED and confirmed the accuracy of Republic’s and Tri-CED’s calculations. FY 2026-27 rate adjustments for residential customers are listed below in Table 1 with the overall adjustments totaling 3.11% to 3.53% increase for residential customers. These adjustments include the indexed increase in the haulers cost, annual adjustment in disposal cost, adjustment to the City Fees and implementation of a new Regulatory Fee (see below).
Table 1: FY 2026-27 Residential Customers Monthly Solid Waste Rate Adjustment Hauler Components 20-Gal
Adjustment
35-Gal
Adjustment
65-Gal
Adjustment
95-Gal
Adjustment
Republic $38.73 $48.43 $96.94 $145.35
Tri-CED $23.03 $23.03 $23.03 $23.03
Total Index-Based Rate Adjustment 3.53% 3.44% 3.21% 3.11% In March 2026, the Alameda County Waste Management Authority (StopWaste), of which the City is a member agency, adopted a Regulatory Fee (Fee). This Fee is assessed on all residential, commercial, and drop box accounts beginning July 1, 2027. For residents, the fee is $0.30 per month. For multi-family and commercial accounts, the fee is $1.10 per weekly cubic yard of garbage per account per month. For drop box services, the fee is $0.25 (loose) of $0.50 (compacted) per cubic yard of garbage per account per collection incident. This fee is managed by StopWaste to pay for programs it implements and 1 Organic waste in carts is subcontracted out to Tri-CED in the Republic Agreement.
To: Mr. Todd Storti
From: Claire Wilson, Sr. Managing Consultant
Scott Hanin, Principal
Date: May 26, 2026
Subject: City of Union City FY 2026-27 Rate Adjustment Review City of Union City – FY 2026-27 Rate Adjustment Review Page 2 of 3 administers on behalf of the City, including SB 1383, SB 54, and AB 939. Because this fee is the same regardless of cart size, the rate impacts are slightly different for each size.
Review of Request
Index-Based Rate Adjustment Methodology
The Index-Based Rate Adjustment described in the Agreements is an annual adjustment to the collection service rates that customers are charged for their collection services. The rates are adjusted based on index values provided by the Bureau of Labor Statistics and is 100.0% of the average change for the twelve (12) month period from January to December. The index stated in the Agreements is series CUSR0000SEHG, Water and Sewer and Garbage Collection Services in U.S. city average, all urban consumers, seasonally adjusted.
For this first rate adjustment, effective July 1, 2026, the Index-Based Rate Adjustment is based on the percentage change in CPI for the average CPI value from January 1, 2025, through December 31, 2025, compared to the average CPI value from January 1, 2024, through December 31, 2024, rounded to the nearest one-hundredth of a percent (1/100%).
The Agreement also includes provisions for annual adjustments to disposal per ton rates, of which are adjusted two times a year by BLT Enterprises of Fremont (BLT), bad debt, and City fees. City fees were adjusted by the Consumer Price Index for All Urban Consumers for this year. The CPI calculation is capped at 5.0% each year but may be rolled over to the subsequent Rate Year.
Tables 2 and 3, below, breaks down both hauler’s components for the most popular residential customer rate, 35-gallon garbage with any size recycling and organics. For commercial customers, Table 3 highlights a commercial customer with 1-yard garbage bin, a 96-gallon recycling cart, and 64-gallon organics cart that is serviced once per week.
Table 2: FY 2026-27 Residential Monthly Rate Increase
Residential 35-Gallon Garbage Rate Increase Current Rate ($/Month)
Proposed
Rate
($/Month)
Monthly
Change
Republic Component $47.08 $48.43 $1.35
Tri-CED Component $22.01 $23.03 $1.02
Index-Based Rate Adjustment ($) $69.09 $71.46 $2.37
StopWaste Regulatory Fee $0.00 $0.30 $0.30
Total Rate Adjustment ($) $69.09 $71.76 $2.67
All residential customers pay for recycling on a per-dwelling basis rather than by cart size. As such, all TriCED Components are the same for residential customers.
Table 3: FY 2026-27 Commercial Monthly Rate Increase
Commercial Rate Increase
1-Yard Garbage, 96 Recycling, 64 Organics
Current Rate
($/Month)
Proposed
Rate
($/Month)
Monthly
Change
Republic Component $252.39 $259.64 $7.25
Tri-CED Component $30.72 $32.15 $1.43
Index-Based Rate Adjustment ($) $283.11 $291.78 $8.67
StopWaste Regulatory Fee $0.00 $1.10 $1.10
Total Rate Adjustment ($) $283.11 $292.88 $9.77
City of Union City – FY 2026-27 Rate Adjustment Review Page 3 of 3 Recommendations & Next Steps
R3 recommends City acceptance of the FY 2026-27 collection rates as adjusted by the standard methodology outlined in the Agreements. R3 reviewed Republic and Tri-CED’s calculations for accuracy and adherence to the terms and conditions of the Agreements, which confirmed that the calculations are accurate and correct. Both Republic and Tri-CED have reviewed the calculated and agree to the accuracy. While the Agreements allow for the City Manager to approve rate requests below 5% and refer them to the City Council at her discretion, the City anticipates bringing this adjustment to City Council to formally approve the 2026-27 solid waste rates.