Last week The Business Journal published a story about Caglia Environmental that quoted from a letter from a so-called taxpayer group we received in a news release. That was a mistake, and this error led to a story about allegations that were later proven false. We regret this error in judgement and regret any damage it may have caused the longtime family business.

In an era when unsubstantiated allegations can circulate instantaneously, journalists must be extra diligent to ensure the information they present was gathered from credible sources and that both sides of a story have their say. We fell short in both regards.

Ultimately, Caglia Environmental was only following the procedures set forth by the City of Fresno — and approved by a city council vote in 2018 — that resulted in overbilling by more than $3 million for trash services.

Allegations of fraud on the part of Caglia Environmental were brought forth by the Central Valley Tax Protection Group, with a chairman listed in the news release as “Gregory Wallis” alerting the local news media to a complaint it said it filed with the Fresno County District Attorney’s Public Integrity Unit alleging misuse of public funds. The DA’s office does not confirm receipt of such submissions, making it impossible to know if it was real.

A search of publicly available records could not find a Central Valley Tax Protection Group in operation.

Caglia Environmental Owner Richard Caglia set the record straight last Friday in a call with The Business Journal, confirming a statement he made in a story published at GVWire.com.

“Cedar Avenue Recycling and Transfer Station made a request due to increased operational costs. After a due diligence process with City staff, our issue was publicly noticed and brought to the Fresno City Council with a recommended approval for the rate increase. We followed all policies and procedures set forth by the City of Fresno,” owner Richard Caglia said.

For more about how the issue originated, see our previous story.

The City of Fresno is currently undergoing the process it should’ve taken six years ago to raise solid waste rates. Why a so-called Proposition 218 process was not initiated for the 2018 rate increases is not known, with some speculating it was the political optics of not wanting to raise taxes. While the City is being tight-lipped about the matter, there is also reporting that the most recent Prop. 218 process could retroactively cover the overpayments.

Whatever your opinion of how the city keeps its fiscal house in order, retroactive coverage through the most recent Prop. 218 process would seem to be the best course to ensure the City’s books are balanced. Caglia Environmental was originally left behind in the shuffle, and now local ratepayers can decide if the trash system as they know it should be saved.

And the members of the Fresno City Council will also weigh in on whether to give residential solid waste a lifeline.

Whatever the choice, ratepayers should know Caglia Environmental followed the rules.