Kevin McCallum, THE PRESS DEMOCRAT
Low rates have long led to big headaches for The Ratto Group, the dominant waste hauler in the county, serving eight of the nine cities plus the unincorporated areas.The company, founded by Jim Ratto, has been repeatedly criticized for cutting corners in Santa Rosa in ways that resulted in poor customer service, dangerous working conditions for workers, low recycling levels, and an aging fleet of trucks that didn’t live up to its contract with the city.
The curbside collection rates that most Santa Rosa residents pay are set to soar nearly 60 percent under a proposed 15-year contract the city has negotiated with the San Francisco-based garbage company buying its current hauler, The Ratto Group.
The city this week released details of the agreement it has struck with Recology to be the exclusive provider of the garbage, recycling and organic waste pickup services to approximately 55,000 residential and commercial accounts beginning Jan. 1.
If approved by the City Council, the deal is expected to generate $49 million in annual revenues for Recology, or $735 million over the life of the contract. The company would pay the city a 14 percent franchise fee, which would pump $7 million annually into the city’s coffers, or $105 million over the life of the agreement.
The report is the first official confirmation that Recology, one of the largest refuse providers on the West Coast, has survived a competitive and secretive selection process to ink a tentative deal with the city, a fact first reported by The Press Democrat earlier this month.