Caglia Environmental Owner followed city procedures for rate increases

Photo of Fresno City Hall by Breanna Hardy

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

The Business Journal previously reported that Caglia Environmental’s Orange Avenue Disposal overbilled the city of Fresno by $3.35 million for residential waste treatment between 2018 and 2022 — allegations raised by a self-described taxpayer advocacy group with an identity it couldn’t identify. are confirmed.

The so-called Central Valley Tax Protection Group, whose chairman was named in a news release as “Gregory Wallis,” alerted local news media Tuesday about a complaint it said it had filed with the Fresno County District Attorney’s Public Integrity Unit alleging abuse of public funds. The District Attorney’s Office does not acknowledge receipt of such submissions.

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

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

The rate increase approved in 2018 was accomplished during Mayor Lee Brand’s administration through a contract modification with Caglia’s Orange Avenue Disposal, but a required Proposition 218 process was not followed, GVWire reported. Prop 218 requires a public hearing and the opportunity for taxpayers 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 outlines steps to increase trash rates, including action by the Fresno City Council, a public hearing and a process for taxpayers to protest – was formally adopted by the Fresno City Council in December 2023. Rate increases are needed to support a projected $50 million deficit in the system over the next five years, GVWire reported.

The city of Fresno announced Friday that it will move the Prop 218 public hearing for the proposed update to municipal solid waste rates to a public hearing on June 20.

The city originally sent owners and registered customers a notice of a public hearing to be held May 2 to consider an update to municipal solid waste rates.

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

If a majority of the lots receiving residential waste services protest the proposed increases in writing, the City Council may not consider the proposed rate plan.

If the rates are passed, they will not increase until July 1.