CC - Item 5E - Solid Waste Franchise Agreement Compliance and Performane UpdateROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, CITY MANAGER'`
DATE: MAY 26, 2026
SUBJECT: SOLID WASTE FRANCHISE AGREEMENT COMPLIANCE AND
PERFORMANCE UPDATE
SUMMARY
On August 1, 2023, the City entered into a solid waste franchise agreement with Republic Services
to provide residential, multi -family and commercial solid waste, recycling, and related services.
During the regular City Council meeting on April 14, 2026, the Council directed staff to present
an update on Republic Services' compliance and performance under the franchise agreement, with
a focus on bulky item collection, graffiti removal from containers, and bus shelter maintenance.
At the same time, the City Council also requested that the update include a summary of the findings
from the recent Billing Audit Final Report.
DISCUSSION
Under the franchise agreement, service accounts are entitled to the following:
• Free collection of up to 25 bulky items per year for residential accounts and up to 30 items
for multi -family accounts.
• Timely repair of collection containers, including the removal of graffiti, within five
working days of receiving notification.
• Garbage collection at City -owned bus shelters at least three times per week.
To ensure that these services are being managed effectively, Staff utilizes both Republic Services'
Waste Reporting System and the City's Citizen Request Management (CRM) System to monitor
and track customer request and response times. These systems allow Staff to confirm that Republic
Services is meeting the City's service expectations. For this update, Staff collected data from both
systems to track and evaluate performance for the review period from January 1, 2026, through
March 31, 2026.
Bulky Items — Republic Services collects bulky items on the same day as the regular refuse
collection. To ensure collection of bulky items within the same week, residents must call to
schedule a pickup at least two business days before their scheduled collection day. Requests
received less than two business days before the next collection will be serviced the following week.
AGENDA ITEM 5.E
City Council Meeting
May 26, 2026
Page 2 of 5
Therefore, the maximum time it may take for Republic Services to collect bulky items after
receiving a request is nine (9) days. Based on data provided through the Waste Reporting System
during the review period, 92% of requests were completed within this nine -day window, while 3 %
exceeded it. The table below summarizes the number of bulky item requests submitted and the
time it took to close each request:
Resident Call -In Requests to Republic Services for Bulky Item Pickup
Days to Close Number of Requests Percent of Total
0 — 2 Days 379 41%
3 — 5 Days 309 33%
6 — 7 Days 167 18%
8 — 9 Days 46 5%
Greater than 9 Days 27 3%
Total 928 100%
Republic Services also receives abandoned bulky item pick up requests from the City's CRM
system. These requests are typically entered by Code Enforcement or Public Works staff. For these
types of requests, Republic Services is required to collect and remove the items within one business
day. During the review period, 59% of requests were addressed within one business day, while
41 % exceeded it. The table below summarizes the number of bulky item requests submitted
through the CRM system and the time elapsed for Republic Services to close each request:
Abandoned Bulky Item Collection Requests from City's CRM System
Days to Close Number of Requests Percent of Total
0— 1 Days 176 59%
2 — 4 Days 104 35%
Greater than 4 Days 20 6%
Total 300 100%
Graffiti on Containers — Republic Services is required to repair collection containers, including
removing graffiti, within five business days of notification. Any container covered in graffiti must
be exchanged within 24 hours of a driver's notification or a customer request. Republic Services
provided a complete list of container exchanges but was unable to isolate those specifically related
to graffiti. Call logs showed only one request for graffiti removal during the review period, which
was addressed within 24 hours. The City's CRM system did not record any graffiti requests for
Republic Services containers during this time.
City Council Meeting
May 26, 2026
Page 3 of 5
To provide a broader perspective, the review period was increased to include data from the start
of the franchise agreement, through March 31, 2026. This review revealed that 43% of requests
were addressed within five days, while 57% exceeded the five-day requirement. The table below
summarizes the number of graffiti requests submitted through the CRM system and the time taken
by Republic Services to close each request:
Graffiti Removal Requests from City's CRM System
Days to Close Number of Requests Percent of Total
0 — 2 Days
5
36%
5 Days
1
7%
Greater than 5 days
8
57%
Total
14
100%
Bus Shelter Maintenance — Similar to graffiti, there is limited data available for bus shelter
collection requests. Republic Services is required to provide garbage collection services at City -
owned bus shelters not less than three days per week. In addition to refuse collection, services
include power washing public trash cans and maintaining cleanliness in and around the trash cans.
Republic Services provided the City with a map of all bus shelters currently being serviced, which
includes 62 bus shelters. Most bus shelters are being serviced on Monday, Wednesday, and
Fridays. However, there are 9 bus shelters being serviced daily along San Gabriel Blvd, Walnut
Grove Ave, and Graves Ave. The City has a CRM topic for City Bus Stops, but no requests related
to garbage collection were entered during the review period. Broadening the review period from
the start of the franchise agreement through March 31, 2026, yielded a total of 12 requests. These
requests go directly to City staff to address, but Republic Services provides assistance as needed.
The table below summarizes the number of bus shelter requests related to garbage collection
submitted through the CRM system and the time elapsed to close each request.
City Bus Stop Requests from City's CRM System
Days to Close Number of Requests Percent of Total
0 — 3 Days 5 42%
4 — 7 Days 4 33%
Greater than 7 days 3 25%
Total 12 100%
City Council Meeting
May 26, 2026
Page 4 of 5
Belling Audit Final Report From the inception of the franchise agreement, staff has received
reports from residents and businesses regarding billing errors and incorrect fees charged by
Republic Services. In response, the City retained MSW Consultants on May 1, 2025, to conduct a
billing audit focused on commercial and multi -family accounts, where discrepancies were found
to occur most frequently.
MSW Consultants reviewed over 500 commercial and multi -family accounts (approximately 75%
of total accounts), as well as 2,530 residential "delinquent" accounts, for the period of August 1,
2023, through December 31, 2025, representing a statistically significant sample. The audit found
the following key issues: (1) businesses with approved SB 1383 organics waivers being charged
the full bundled rate instead of the reduced organics -exempt rate; (2) charges applied for additional
organics carts that were not actually provided or did not match observed service levels; (3) use of
incorrect rate categories (e.g., 'Extra Yards" instead of the applicable "Overage" rate); and (4) late
fees applied inconsistently and outside the procedures outlined in the franchise agreement. In total,
the audit identified $240,739.94 in overbilling across commercial, multi -family, and residential
delinquent accounts as outlined below.
Summary of Billing Discrepancy Issues
Billing
Number of Affected
Percent of Affected
Amount
Discrepancy Issue
Accounts
Accounts
Overcharged
Waivered accounts charged
61
o
0.55 /o
$46,950.55
non-waivered rate
Accounts charged for 64-
gallon organics cart despite
116
1.04%
$149,515.80
actual service levels
Accounts charged incorrect
"Extra Yards" rate instead
501
4.51 %
$13,295.67
of correct "Overage" rate
Late fees inconsistently
applied to residential and
2,653
23.87%
$30,977. 92
commercial accounts
TOTAL
3,331
29.97%
$240,739.94
City staff has shared these findings with Republic Services, which is currently reviewing them.
Once the review is complete, Republic Services will provide a formal response to the City. In the
meantime, Staff is following the process closely and will be working to ensure that appropriate
corrective actions are implemented, including customer account adjustments, improved service
delivery, and enhanced monitoring procedures.
City staff will continue to oversee compliance efforts and provide updates as needed to ensure
adherence to the franchise agreement and maintain high -quality service for the community.
City Council Meeting
May 26, 2026
Page 5 of 5
STAFF RECOMMENDATION
Staff recommends that the City Council receive and file this report.
FISCAL IMPACT
There is no fiscal impact associated with this item.
ENVIRONMENTA REVIEW
The proposed action is not subject to the California Environmental Quality Act (CEQA) pursuant
to CEQA Guidelines Section 15378(b)(5), as it constitutes an administrative activity of the City
involving general policy direction and does not commit the City to a specific project or result in a
physical change to the environment.
STRATEGIC PLAN IMPACT
The management and implementation of solid waste services is consistent with the 2030 Strategic
Plan' s Goal C "Infrastructure and Facilities".
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Arlene Tieu, Public Works Administrative Analyst
Submitted by:
4Satie z, Direc lic Works
Attachment A: Republic Services Compliance Update Slide Presentation
Attachment B: Billing Audit Final Report (MSW Consultants)
Attachment A
Republic Services Compliance Update
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Attachment B
Billig Audit Final Report
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CITY OF ROSEMEAD
BILLING AUDIT OF REPUBLIC SERVICES
FINAL REPORT
PREPARED BY
u7m
CONSULTANTS
APRIL 15, 2026
PAGE INTENTIONALLY LEFT BLANK
BILLING AUDIT
OF REPUBLIC SERVICES
TABLE OF CONTENTS
1. Executive Summary...........................................................
2. Background and Objectives ..............................................
2.1 Background..............................................................
2.2 Audit Objectives......................................................
2.3 Procedures...............................................................
3. Billing Accuracy.................................................................
3.1 Confirm Fee Payments ............................................
3.2 Confirm Billing Accuracy ..........................................
3.3 Late Fee Review .......................................................
3.4 Special Case Review .................................................
................................................................1
................................................................ 2
................................................................ 2
................................................................ 2
................................................................ 2
................................................................ 3
................................................................ 3
................................................................ 4
................................................................ 7
..............................................................10
1. EXECUTIVE SUMMARY
MSW Consultants was retained by the City of Rosemead (City) to conduct a billing audit of
Republic Services (Republic). The term of the agreement between the City and Republic began
on August 1, 2023, and extends through June 30, 2033. This report describes the background,
objectives, procedures, and findings related to our audit of Republic Services.
The objectives of our audit were to determine whether Republic had:
• Properly paid fees to the City;
• Accurately billed its customers.
Adverse Findings
As a result of our audit, we found several circumstances in which Republic had not fully
complied with the terms of the agreement:
1. Republic charged accounts with approved SB 1383 organics waivers the bundled rate
instead of the correct organics -exempt rate.
2. Republic charged the bundled rate to customers who did not have the appropriate
recycling or organics carts included in the bundle.
3. Republic did not provide compliant containers in accordance with Exhibit 4 of the
franchise agreement to some commercial customers.
4. Republic charged some accounts a fee for an additional 64-gallon organics cart, which
did not reflect the actual organics service level observed on -site.
5. Republic charged inconsistent late fees to residential and commercial accounts that
are not in alignment with the franchise agreement.
6. Republic charged an "Extra Yards" fee instead of the correct "Overage" rate for
instances where the lid of a container was unable to close.
7. Republic charged customers with multiple trash bins the bundled rate for each trash
container without providing the corresponding organics and recycling carts included in
the bundle.
1 of 12 Audit of Republic Services
2. BACKGROUND ANDOBIEcrIVES
2.1 Background
Under the terms of its agreement with the City, Republic is required to:
• Provide solid waste collection services according to certain performance standards.
• Provide solid waste collection services at rates that are set forth in the agreement.
• Remit to the City franchise fees equal to 10% of gross receipts.
• Provide monthly reports, quarterly reports, and annual reports to the City.
Additionally, the City has the right to conduct contract compliance audits of Republic's fee
payments, operations, and financial records. The City has retained MSW Consultants to
conduct a billing audit of Republic. This report describes the audit background, objectives,
procedures, and ourfindings.
2.2 Audit Objectives
The objectives of this engagement were to confirm that Republic had:
• Accurately billed its customers with a specific focus on residential delinquent accounts,
multi -family and commercial customers.
2.3 Procedures
Throughout this report, for each of the steps performed in our audit, we have described the
background, objective, procedures, and our findings. These procedures were agreed to by the
City, and the City is responsible for their sufficiency. This report is intended solely for use by
the City and should not be used by those who have not agreed to the procedures and taken
responsibility for the sufficiency of the procedures for their purposes.
2 of 12 Audit of Republic Services
3. BILLING ACCURACY
3.1 Confirm Franchise Fee Payments
Background
Article 4 of the franchise agreement requires Republic to remit to the City a franchise fee equal
to 10% of gross receipts. Accurate reporting of gross receipts and proper segregation of
Rosemead customer payments from other jurisdictions is critical for ensuring the City receives
the full amount owed.
Objective
Confirm that Republic properly paid its franchise fees to the City.
Procedures
• We obtained from the City copies of the quarterly statements that accompanied
Republic's fee payments.'
• We evaluated the method used to segregate payments from customers in Rosemead
from those in other jurisdictions.
• We gained an understanding of the calculation method used for franchise fees. We
verified formulas and recalculated the amounts in the supporting documents.
• We performed false exclusion testing to ensure that Republic had included all of its
gross receipts in the amounts reported to the City.
Findings
We found that Republic had correctly remitted its franchise fees to the City in accordance with
the agreement. Table 1 below shows the total amount of fees due based on our findings, as
well as any amounts underpaid or overpaid to the City by Republic. It is important to note that
any reimbursements resulting from the findings of this report will correspond to a change in
the franchise fees received for the next quarter.
Table 1- Franchise Fee Payments
1 The datasets used for this review include Q12025, Q2 2025, and Q3 2025 Rosemead Quarterly Fees & Reports received
by Republic Services. These reports are provided by Republic as supporting documentation to the franchise fee payments
received every quarter by the City. The datasets are available upon request.
3 of 12 Audit of Republic Services
3.2 Confirm Billing Accuracy
Background
Articles 6 and 7 of the franchise agreement between the City and Republic establishes the
procedures for customer billing and rate application. Under the agreement, Republic is
required to bill residential and commercial customers according to the approved rate
schedule and ensure that all billed service levels accurately reflect the number and size of
containers provided.
Article 11 and 12 of the franchise agreement between the City and Republic establishes
the base level of services for multi -family and commercial accounts subscribing to bin
services. As part of the based bundled rate Republic is required to provide one (1) 96-
gallon blue recycling cart and one (1) 32-gallon green organics cart.
Objective
Confirm that Republic had billed only up to the maximum rates allowed pursuant to the
agreement and provided the base level of service to commercial and multi -family accounts.
Procedures
• We obtained the most recent electronic download of Republic's entire list of
commercial and multi -family customers. The list included each customer's name,
service address, number and sizes of containers, and type of service.2
• We compared the current rates charged to customers to the current approved rates.
• We sorted and analyzed all the service level information and checked for any
exceptions.
• We selected a statistically representative sample of multi -family and commercial
customers, visited selected location, and compared the actual container size and
number of bins to those shown in Republic's billing system.'
There are approximately 553 commercial customers and 128 multi -family customers in the
City, adding up to a total of 681 accounts. Table 2 on the next page provides a breakdown of
the types of reviews conducted. Some businesses received both an on -site visit and an invoice
billing review. In total, 503 accounts were reviewed through a combination of on -site visits
and invoice billing reviews. While on -site audits were attempted for 400 accounts, some visits
could not be completed due to inaccessible sites (e.g., locked gates or no one present), which
prevented MSW Consultants from taking photos or verifying conditions on -site. Together,
2 The dataset used for this review includes the Q4 2025 Commercial Service Account Data for the period of October 2025
through December 2025. Republic Services provides the City with updated Service Account Data including the billed rates
on a quarterly basis. The dataset is available upon request.
3 The photos and notes from the on -site bin audits are available upon request.
4 of 12 Audit of Republic Services
these review methods account for over 70 percent of all commercial and multi -family
accounts.
Table 2- Types of Review Performed for Commercial and Multi -family Accounts
Findings
We found that Republic did not accurately charge their customers for their current services.
These findings are based on the most recent service account data received from Republic
Services for Quarter 4 of 2025. Therefore, the overcharged amount reflects the period from
the start of the franchise agreement on August 1, 2023, through December 31, 2025. The
types of discrepancies that were found are listed below:
Finding #1
• Businesses with City approved SB 1383 waivers had been incorrectly charged.
Specific businesses in Rosemead who do not produce a certain amount of organics as
specified in the City Municipal Code are able to qualify for an organics waiver. Once an
organics waiver application is reviewed and approved by the City, the customer is charged
an organics -exempt rate. Table 3 below shows the number of businesses that have
approved SB 1383 waivers but are not charged the correct exempt rate.
Table 3 - Waivered Accounts Charged the Bundled Rates
5 of 12 Audit of Republic Services
Finding #2
• Businesses with bundled rates missing carts and having non -compliant containers.
The current standard bundled rate includes a 96-gallon recycling and 32-gallon organics
cart, unless the account has been issued a waiver. Table 4 below shows businesses that
are charged the bundled rate but are missing an organic cart, a recycling cart, or both.
Table 4 - Accounts Missing Carts
During on -site visits, several containers were identified as non -compliant in accordance
with the Collection Container Specifications outlined in Exhibit 4 of the Franchise
Agreement. For example, some containers lacked a Republic Services logo or proper
labeling, while others did not have the appropriately colored lid corresponding to the
designated waste stream (e.g. recycling bins with black lids). Pursuant to Exhibit 6 of the
Franchise Agreement, Republic Services is subject to a $50 penalty for each collection
container that does not comply with the specifications set forth in Exhibit 4 if not cured
within 30 days. Table 5 below identifies the number of businesses where non -compliant
containers were observed on -site.
Table 5 - Accounts with Non -Compliant Containers
6 of 12 Audit of Republic Services
Finding #3
• Businesses that have bundled rates charged for an extra organics cart.
Based on the audit procedures, we found that 116 accounts that have the baseline
bundled rate of services (one trash bin, one recycling cart and one organics cart) have an
extra charge for an additional 64-gallon organics cart. Of these accounts, 39 of them did
not have any organics cart on -site, 6 of them had only a 32-gallon organics cart on -site,
and 45 of them had a 64-gallon organics cart and no 32-gallon organics cart on -site. There
were 3 accounts that received a 64-gallon organics cart in 2025 but did not have any
organics carts prior.
Customers who signed up for organics service to comply with AB 1826 prior to the new
franchise agreement may still be paying for the organics collection level service they were
originally enrolled for under AB 1826. Therefore, some customers may be paying for a
separate organics service in addition to the bundle service, which already includes a charge
for organics. Table 6 below shows the number of businesses that have the bundled rate
and are also charged for an extra organics cart.
Table 6 - Accounts Charged for Extra Organics Cart
3.3 Late Fee Review
Background
According to the City's agreement with Republic Services, there is no stated process for
charging late fees for delinquent accounts under 120 days. The Agreement allows Republic
Services to charge a penalty and interest to residential accounts as described below:
City Rights to Lien Delinquent Accounts; Residential Delinquencies.
7.06 Delinquent Service Accounts. Contractor shall report Service Recipients whose accounts
are delinquent by more than ninety (90 days) to the Agreement Administrator on a monthly
basis.
7 of 12 Audit of Republic Services
7.07 Contractor's Reservation of Legal Rights and Remedies. Notwithstanding any other
provision of this Article, Contractor reserves its right to, and may take such action as is legally
available to Contractor, to collect or cause collection of past due invoice amounts; provided,
however, that Contractor shall never discontinue Integrated Solid Waste Handling Services to
any Service Unit except upon thirty (30) days prior written notice to both the Service Recipient
and the Agreement Administrator. Contractor may send a written notice to Service Recipient
regarding payment of billings during the billed service period.
7.08.1 Delinquent SFD and MFD Service Accounts. For health and safety reasons, Contractor
shall not discontinue service to SFD Service unit or MFD Service Unit Customers or a
Residential property that is not Unoccupied as provided above. City is authorized to collect
delinquent Integrated Solid Waste Handling fees in the manner provided by section 25831
and 38790.1 of the Government Code.
7.08.2 Upon the written request of the Contractor, the City authorizes and agrees to assist
Contractor in submitting account delinquency information to the Los Angeles County
Assessor's Office for placement on the tax roll. By submitting a written request, Contractor
assigns its right to collect the delinquencies to the City.
7.08.3 Contractor agrees not to discontinue service to SFD Service Unit or MFD Service Unit
Customers. SFD Service Unit or MFD Service Unit Customers (owners or tenants) who have
not remitted required payment within one hundred twenty (120) days after the date of billing
shall be notified by Contractor on forms that contain a statement that if payment is not
received within fifteen (15) days from the date of the notice, a ten percent (10%) penalty and
one point five percent (1.5%) monthly interest will begin to accrue and the City will be
informed of the delinquency in an annual report. Contractor will deliver a report of the
delinquencies by no later than April 30th of each year with a request that the City place the
delinquencies on the tax roll. City is authorized to collect delinquent solid waste fees or
charges in the manner provided in sections 38790.1 and 25831 of the Government Code. To
implement Contractor's request, City will set a time, date and place for hearing the report and
any objections and protests to the report. As determined in the sole discretion of the City, the
Contractor shall mail notice of the hearing to the SFD Service Unit or MFD Service Unit
Customers listed on the report not less than ten (10) days prior to the date of the hearing. At
the hearing, the City shall hear any objections or protests of SFD Service Unit or MFD Service
Unit Customers liable to be assessed for delinquent fees. The City may make revisions or
corrections to the report as it deems just, after which, by resolution, the report shall be
confirmed.
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Objective
Confirm that Republic had followed the process outlined in the Franchise Agreement for
delinquent accounts.
Procedures
• We reviewed the residential and commercial late fee report provided by Republic
Services from August 1, 2023, through June 30, 2025. 1
• We also reviewed the franchise agreement and the rate sheet and determined that
Republic Services is not allowed to charge a late fee to residential accounts that were
under 120 days delinquent. Additionally, late fee procedures outlined within the
Franchise Agreement do not apply to commercial accounts.
Findings
Based on our review, we found that the amount of late fees charged to residential and
commercial accounts are not applied consistently nor in compliance with the Agreement.
Residential
Based off our review, we found that the City did not receive a report from Republic listing
accounts that are 90 days delinquent on a monthly basis as required by the franchise
agreement. The range of late fees charged were from $0.01 to $381.43 for the residential
sector, which averaged to $10.92 per residential customer. Most of the accounts that were
assessed a late fee ranged from $0.01 to $11.93. There was one outlier for a multi -family
account that was charged a late fee of $381.43.
The late fees applied to the residential sector were inconsistent; some accounts were charged
a percentage while most of the accounts were charged a flat rate of $5.00.
Commercial
The commercial sector range of late fees charged was from $0.01 to $284.49, which averaged
$28.94 per commercial business. We found that no commercial accounts were charged a flat
fee, but the percentage range of the late fees was from .01%to 47.72%. There was one outlier
for a commercial account with multiple bins that was charged a late fee in the amount of
$284.49.
Table 7 below shows the total number of accounts and total amount of late fees that were
charged to residential and commercial customers by Republic Services.
4 The data used forth is review includes the Rosemead Residential Late Fees and Rosemead Commercial Late Fees for August
2023 —June 2025 provided by Republic Services. The dataset is available upon request.
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Table 7 - Late Fee Charges by Sector
3.4 Special Case Review
Background
In addition to standard billing accuracy, the City requested a review of "special case" billing
scenarios, including push and scout services, and any other potential anomalies in service
configuration. These special cases arise due to the variety of service types and rate structures
included in the franchise agreement and require targeted analysis to ensure correct
application.
Under Article 12 Republic is allowed to provide push and scout services at an additional cost.
Scout service is provided if the standard collection vehicle is unable to access the solid waste
containers. A scout vehicle is used to retrieve containers and place them in an area where a
standard vehicle is able to access the container. Once emptied the scout vehicle is used to
place the containers back to its original storage area.
Push service is provided if the driver must get off their truck to push the bin or cart to the curb
for collection. The price of push service increases by the distance required to push the
container, as well as the number of times the container is collected per week.
Objective
Determine whether Republic billed customers correctly for special -case billing situations,
including:
Push and scout services, including verification of rate accuracy
• Additional service rates, specifically for overages and extra yards
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Procedures
To conduct this review, MSW Consultants:
• Evaluated invoices for 154 commercial and multi -family accounts for the period of
August 2023 through August 2025.5
• Reviewed all accounts for special -case indicators, including:
o Push and scout service codes
o Additional service rates
• Compared each special case charge to the corresponding approved rate in the
franchise agreement.
• Conducted cross-referencing from on -site conditions (via field inspections where
applicable) to available service account data. Monthly overage logs were reviewed to
identify which accounts were previously charged for the additional service.'
Findings
Based on our procedures we found that Republic accurately charged its customers for push
and scouts services. We also found that customers were charged with an "Extra Yards' rate
instead of the appropriate "Overage" rate, resulting in customers being overcharged. The
franchise agreement allows Republic to charge an "Overage" fee to customers that over fill
their bins such that the lid is unable to close completely; however, the franchise agreement
does not mention a fee for Republic to charge for extra yardage. According to Republic
Services, the "Extra Yards' fee only applies if the container exceeds its limit by more than one
yard, requiring an additional pick-up service. Since the beginning of the new franchise
agreement executed in August 2023 through August 2025, Republic Services charged an
"Extra yards" fee instead of the correct "Overage" fee for instances where bins were unable
to close. Table 8 below shows the number of customers that were affected and the total
amount of the overcharge.
Table 8- Extra Yardage Rate Overcharged Amount
'The City received copies of invoices for 154 randomly selected commercial accounts for the period of August 2023 through
August 2025 from Republic Services. These invoices are available upon request.
a Republic Services provides a monthly log of accounts billed for overages to the City. The logs provided for the period of
August 2023 through August 2025 were used for this review. These logs are available upon request.
11 of 12 Audit of Republic Services
Based on our review, the City has about 681 commercial and multi -family customers with the
baseline level of service (one trash bin, one recycling cart and one organics cart). In addition,
there are 67 of these accounts with an extra trash bin beyond the baseline level of service.
Table 9 below identifies the total number of customers with multiple trash bins who are being
charged the bundled rate for each trash bin but do not have the corresponding recycling and
organics carts on site. These additional recycling and organics carts should be included with
each extra trash bin as part of the bundled service rate.
There is no rate for a single trash bin for commercial customers. However, there is a rate for
a single trash cart for residential customers. As a result, commercial customers who have
multiple trash bins are charged the bundled rate for each additional trash bin.
Table 9 - Customers with Multiple Trash Bins
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