Oakland garbage rates to rise after council awards contract

A Waste Management truck works a route in Oakland. A Waste Management truck works a route in Oakland. Photo: SF Gate / Douglas Zimmerman Photo: SF Gate / Douglas Zimmerman Image 1 of / 4 Caption Close Oakland garbage rates to rise after council awards contract 1 / 4 Back to Gallery

Garbage rates in Oakland will rise by 23 percent starting in July 2015 after the City Council voted late Wednesday to award a huge garbage contract to a West Oakland hauling company.

The deal, which has been in the works since 2011, will grant California Waste Solutions a billion-dollar contract to collect trash, recycling and organic compost materials in the city for the next 1o years.

But the 7-1 vote also potentially sets the stage for a bitter battle with Waste Management, the Texas corporation that has held the contract to collect refuse in Oakland for years.

The City Council decided to support California Waste Solutions in part because the local company promised to charge residents $36.82 per month, more than residents pay now but almost $7 less than Waste Management proposed in its original offer.

"This action is going to save the people of Oakland about $200 million over the next 10 years," said Councilwoman Rebecca Kaplan, who voted in favor of the West Oakland company.

But Councilman Noel Gallo, who voted against the deal, said he was worried the company - which has to buy 150 garbage trucks and 300,000 trash bins and build new garbage facilities by July, wouldn't be ready to collect trash in time.

"It is not about promises and commitments, because this city has been about promises and commitments for years," Gallo said. "I will challenge you to make sure it gets done and you don't miss a beat picking my trash off my block."

Joel Corona, chief operating officer of the company, said after the vote that he was confident California Waste Solutions would be prepared.

"We've studied very hard," he said. "We've prepared very well."

Barry Skolnick, president of Waste Management of Alameda County, said he was "disappointed" by the council's vote, which he said was unfair.

"We believe we followed the process, and we believe the process got derailed," Skolnick said.

When asked if Waste Management might consider filing a lawsuit against the city, Skolnick said the company would "explore the options in front of us."