A proposed change to Fresno’s commercial trash contract could lead to higher rates for residential customers, a city councilmember warns.

The Fresno City Council is scheduled to vote Thursday on amending its agreement with Orange Avenue Disposal Company. The amendment would extend the contract by one year, through 2035, and “permit OAD to make future requests for material modifications to the agreement or to increase costs to the City under the Agreement,” according to a staff report.

“Each time the contract was amended, it cost ratepayers more money after the provider promised nothing but savings,” Councilmember Miguel Arias said.

Arias called it “alarming” to “allow one private businessperson in the city to automatically increase garbage rates for all ratepayers in the city … without any vote of the council.” He said that could include residential customers, apartment dwellers, and small businesses.

The amendment would allow rate increases to be approved administratively rather than by the council, Arias said. State law gives residential ratepayers the right to overturn increases if a majority submit protest cards.

“We have never considered this kind of provision in any contract we are currently engaged in or have ever engaged in,” Arias said.

Richard Caglia, CEO of Orange Avenue Disposal, was not immediately available for comment.

Long-term Contract

OAD’s existing contract — last amended in 2020 — tasks the company with hauling “municipal solid waste, construction and demolition, asphalt, concrete, and household hazardous waste” to its facility at 3457 S. Cedar Ave. The proposed amendment does not include any specific price increases.

Arias compared the deal to the rate-setting authority of electricity provider PG&E.

“If the council were to approve this contract as written, it would make Richard Caglia a local PG&E that would be automatically granted rate increases as often as he deemed necessary for his profit margin,” Arias said. “I think that kind of precedent would devastate families who are just getting by.”

If costs are shifted to ratepayers, Arias said, the city would either have to “raid” reserve funds or cut services.