Fresno City Hall photo by Breanna Hardy

A Fresno business owner said he was following the procedures set forth by the City of Fresno — and approved by a city council vote in 2018 — in charging higher garbage rates.

The Business Journal previously reported that Caglia Environmental’s Orange Avenue Disposal had overbilled the City of Fresno by $3.35 million for residential trash handling from 2018 to 2022 –- allegations brought forth by a self-proclaimed taxpayer protection group with an identity that could not be confirmed. 

The so-called Central Valley Tax Protection Group, with a chairman listed in a news release as “Gregory Wallis,” alerted the local news media Tuesday 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 to confirm receipt of such submissions.

Caglia Environmental Owner Richard Caglia set the record straight 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.

The rate increase approved in 2018 was enacted during the Mayor Lee Brand administration through a contract amendment with Caglia’s Orange Avenue Disposal, but a required Proposition 218 process was not followed, reported GVWire. Prop 218 requires a public hearing period and opportunity for ratepayers to protest proposed increases. 

The overpayments were discovered in February 2023. It was Mayor Jerry Dyer’s administration that discovered the oversight, City Manager Georgeanne White said in a statement this week.

The Prop. 218 process — which lays out steps for increasing garbage rates that include action by the Fresno City Council, a public hearing and a process for ratepayers to protest — was formally enacted by the Fresno City Council on December 2023. Rate increases are needed to shore up an expected $50 million shortfall in the system in the next five years, reported GVWire.

The City of Fresno announced Friday it is rescheduling and renoticing the Prop 218 public hearing for the proposed residential solid waste rate update to a June 20 public hearing.

The City originally mailed owners and customers of record a notice of a public hearing to be held on May 2 to consider an update to residential solid waste rates. 

“Following the mailing of the notice, the City became aware of a technical error in the mailing list that inadvertently omitted some owners and/or customers of record. The error has been corrected and an updated mailing list was generated to send a second notice to provide all owners and customers of record the notice at least 45 days prior to the public hearing when the updated rates will be considered. Some owners or customers of record will receive two notices,” according to a news release from the city.

If a majority of parcels that receive residential solid waste services protest the proposed increases in writing, the City Council may not consider the proposed rate plan.

The rates, if adopted, would go up no sooner than July 1.