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Glendale – Hauler Fee, Performance, and Compliance Audits

R3 provides annual comprehensive audits of waste hauler operations in Glendale, to verify that companies are properly reporting their services and paying required governmental fees. Our team reviews the performance for the City’s four franchised haulers as well as several permitted debris box haulers, checking that their billing records match what was actually collected and recycled. We interview hauler staff, examine thousands of individual financial transactions, and cross-check tonnage reports against actual weight tickets from disposal and recycling facilities. We also verify that businesses generating significant waste are receiving proper recycling and organics collection services as required by California law.

Our findings gives the City a clear picture of its waste collection system and identified areas for improvement. The audits confirm whether fee payments are made correctly, validate tonnage reporting accuracy, and ensure that contractors will meet their obligations to the City. We provide recommendations to strengthen City oversight and help resolve any discrepancies between what haulers report and what actually occurred. This annual independent verification protects the City’s interests while ensuring residents and businesses receive the services for which they pay.

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Butte County – Rate Review

Butte County

R3 was recently engaged by Butte County (County) to assist with solid waste planning efforts for the County’s Enterprise Fund and Neal Road Recycling and Waste Facility (NRRWF). R3 is providing a variety of services including:

  • Reviewing and confirming the Interim Year Rate Applications for the County’s three haulers: Waste Management, Recology, and Northern Waste and Recycling;
  • Assisting the County with SB 1383 Capacity Planning by projecting organic waste tons disposed by the County and its incorporated jurisdictions as well as projecting the required additional edible food recovery capacity;
  • Providing the County with draft franchise agreement language for all three haulers to incorporate compliance with AB 1826 & SB 1383, and assisting in contract negotiations with the haulers;
  • Conducting Base Year (Detailed) Rate Reviews for each of the County’s three haulers;
  • Performing a rate study and creating a rate model for the County’s Enterprise Fund; projecting different rate adjustment scenarios over 20 years to ensure revenues can accommodate required expenses;
  • Creating draft ordinance language for the County to comply with SB 1383; and
  • Performing on-call work, as needed, including CalRecycle regulatory assistance, community engagement assistance, grant preparation assistance, and local task force assistance.
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Siskiyou County – Solid Waste Management Plan & Rate Adjustment Plan

Siskiyou County

R3 was engaged by Siskiyou County (County) Department of Solid Waste (Department) to assist with an Evaluation of the County’s existing solid waste system and the development of a Solid Waste Management Plan (Plan) in support of determining future disposal and recycling contracting methods that increase efficiencies and reduce costs.

R3’s objectives for this engagement involved conducting the following primary three tasks:

  • Formulating a specific strategy to extend the County’s existing contracts, and/or to conduct the competitive procurement of the County’s operation services;
  • Conducting a rate comparison and creating a Rate Model to develop a 10-year Rate Adjustment Plan that supports the long-term financial strength of the County’s Sanitation Enterprise Fund; and
  • Reviewing and providing actionable recommendations to enhance the efficiency and effectiveness of the County’s current collection, transfer and disposal systems.

Specifically, R3 reviewed and compared the County’s Transfer Station gate rate to those in similar rural counties, and providing a comparison of the County’s solid waste parcel fee to solid waste parcel fees in other counties in the State (Calaveras, El Dorado, Glenn, Kern, Modoc, Mono, Sierra and Trinity Counties).

R3 assessed the County’s overall solid waste management system to support the identification and realization of opportunities to increase the efficiency and reduce the cost of the Sanitation Enterprise Fund. R3 conducted a SWOT analysis to identify internal Strengths and Weaknesses, and external Opportunities and Threats to the County’s solid waste management system. To accomplish this, R3 worked with County staff on site, touring its facilities and observing its operations in order to comprehensively review the efficiency and effectiveness of the current collection, transfer and disposal systems, and develop meaningful recommendations for improvement.

To support the ongoing management of the Department’s finances, R3 also developed a recommended 10-year Rate Adjustment Plan to enable the County to maintain a positive annual net cash flow for the Sanitation Enterprise Fund, retire its current $6 million debt within a targeted time frame, and fund a new transfer station in Yreka. To do this, R3 created a simple Excel-based Rate Model which can be used to model various gate rate and/or parcel fee adjustments.

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Merced – Solid Waste Rate Study & 5-Year Financial Plan

City of Merced

R3 assisted the City of Merced with updating its solid waste and recycling rates following the repeal of a local utility tax that had previously funded waste programs. When the tax was eliminated in January 2018, the city needed to restructure its rate system to maintain service levels while complying with California’s strict Proposition 218 requirements for how municipalities can charge residents for waste collection. Building on a rate model we developed for Merced in 2014, our team calculated new rate adjustments that would cover the revenue gap and meet evolving state recycling mandates. Our work included analyzing whether additional revenues were necessary, developing multiple rate scenarios, and conducting surveys of comparable cities to ensure Merced’s pricing remained competitive.

The result was a transparent, Excel-based financial planning tool that allows the city to project revenues and expenses on a cost-of-service basis over a five-year period. This model helps Merced plan for future rate adjustments, capital improvements, and operational changes while maintaining compliance with both Proposition 218 and California’s expanding waste diversion requirements. We also reviewed the city’s municipal code to identify updates needed for new state laws on commercial recycling, organics collection, and food waste reduction. This comprehensive approach gave the city financial stability for its waste programs and a clear roadmap for adapting to future regulatory changes.

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City Of Santa Monica – Solid Waste Operational Analysis, Rate Study, and Zero Waste Plan Update

R3 conducted a comprehensive review of Santa Monica’s waste collection and recycling operations to help the city improve efficiency, maintain fair rates, and advance toward its ambitious zero waste goals. Our team analyzed how the City’s Resource Recovery and Recycling Division operated—from staffing levels and equipment to service routes and customer interactions. Through detailed interviews with City staff and residents, we identified opportunities to enhance productivity, safety, and long-term sustainability while ensuring the division had the resources needed to serve the community effectively over the next decade.

A critical part of our work involved protecting ratepayers by examining the City’s billing systems and rate structures. We audited billing records to verify accuracy and compared Santa Monica’s customer billing technology to industry standards used by private haulers. Since the City used systems not specifically designed for solid waste collection, we evaluated whether upgrades could improve service and reduce errors that affect residents. We also conducted a detailed rate study to confirm that current fees covered actual costs and developed a 10-year financial model that allows the City to plan for capital investments, operational changes, and new programs without unexpected rate increases.

Our analysis directly supported Santa Monica’s Zero Waste goals by identifying the most cost-effective strategies to increase diversion from landfills. We evaluated current programs and recommended new initiatives that would move the city closer to achieving 95% waste diversion by 2030. This included assessing opportunities for enhanced recycling, organics processing, and community engagement. We compared how other comparable communities managed the financial impacts of ambitious environmental programs, giving Santa Monica proven strategies that balanced environmental leadership with fiscal responsibility.

Throughout this engagement, we facilitated robust community outreach to ensure residents understood how waste services were funded and what changes might be coming. We developed materials for the Zero Waste Plan and Rate Study that translated complex technical and financial information into plain language. Our goal was to provide Santa Monica with clear options and recommendations that served both the City’s environmental vision and its residents’ need for reliable, affordable waste services. By taking a data-driven approach, we helped the City make informed decisions that would improve operations, achieve ambitious diversion targets, and maintain public trust in how ratepayer dollars are used.

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Marin Franchisor’s Group – Rate Methodology Review

In 2017, R3 conducted a comprehensive rate methodology review for the Marin Franchisors’ Group (Group)—a coalition of jurisdictions including the Cities of Larkspur and San Rafael, the Town of Ross, the County of Marin, and Las Gallinas Valley Sanitary District. When the recycling market collapsed, the Group faced over $1.15 million in accumulated losses that threatened service stability across all member communities. We worked closely with the Group and their franchised hauler, Marin Sanitary Service, to develop a sustainable rate methodology that protected ratepayers while ensuring the continued viability of recycling programs. Our team simplified and streamlined the existing rate adjustment process, creating a clearer system that addressed both routine cost changes and extraordinary circumstances like recycling market fluctuations.

We developed new methodologies that fairly allocated recycling costs and revenues across different communities while addressing the challenge of commercial customers migrating to lower-cost service areas. By establishing performance metrics and tracking mechanisms, we gave the Group better tools to understand service outcomes and make data-driven decisions. We also revised the overall rate-setting process to achieve greater simplification and stability, making it easier for residents and businesses to understand how their rates were calculated. This included instituting formal succession planning to ensure continuity as leadership changed over time.

Since that initial engagement, R3 has been retained annually to provide ongoing rate review services for the Group. Each year, we conduct detailed cost-based rate analysis to ensure fees remain aligned with actual expenses and market conditions. For example, in 2018, we determined an overall rate increase of 9.58% was necessary to cover projected expenses and address the recycling market crisis, helping the Group make difficult but necessary adjustments to keep waste collection and recycling services financially sustainable. This annual partnership ensures the Group’s rate methodology remains responsive to changing conditions while protecting ratepayers from unnecessary increases. Our continued involvement helps these  communities maintain reliable waste services and meet California’s environmental goals without compromising fiscal responsibility.

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