City Councilman Noel Gallo is outraged by a veiled $30 million garbage tax being levied on Oakland residents, hidden in a new contract between the city and a waste management provider.
The councilman points out that whoever wins the new contract will be subjected to a $30 million franchise fee, which will be immediately passed on to the customer. Gallo complains, “So it really amounts to a hidden tax.”
According to SFGate, now that the contract worth over $100 million is up for renewal, the current contractor, Waste Management, and another leading trash hauler, California Waste Solutions, have made proposals.
The single-family homes serviced by the new deal should see their garbage management fees increased by 50%. City Council President Pat Kernighan admits that no one likes paying more in fees, but that the hike is necessary. “I’d hate to think of the cuts we would face if we lost that $30 million,” Kernighan said.
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