Recology, which has long held a monopoly over San Francisco’s trash pick up, has won a 10-year contract to dispose of the refuse into a landfill it owns 130-miles away in Yuba County.
The Board of Supervisors Board of Supervisors voted 9-2 Tuesday to award the $112 million contract, which will go into effect in 2015.
Recology’s President & CEO Mike Sangiacomo praised the board’s decision in a statement. “The merits of the Recology proposal are definitive: more than $100 million in cost savings to San Francisco rate payers, a reduction of fuel usage for the transportation of waste by 1 million gallons, and 10 million fewer truck miles on Bay Area highways by switching to rail haul.”
Supervisors David Campos and John Avalos opposed the contract. Both have recommended The City overhaul the process of the garbage industry by competitively bidding all components, not just the landfill agreement. “For me the question with respect to this contract comes down to not so much who the specific players are but simply the process and where we are as a city in terms of management of this issue,” Campos said.
The bidding process for the landfill contract has come under a legal challenge by the garbage company which currently has the landfill agreement.
The landfill contract also reignited a debate about whether The City should repeal the 1932 laws that have allowed Recology to pickup trash without having to go through a competitive bidding process. An effort is underway to place a measure on the June 2012 ballot to open up the industry to competitive bidding.