City of Fresno waste disposal photo

CORRECTION: This article has been edited to reflect that a letter reportedly sent to the Fresno County DA  by the Central Valley Tax Protection Group could not be verified.

A self-proclaimed Fresno taxpayer advocacy group issued a press release with allegations that Caglia Environmental overcharged Fresno garbage ratepayers by $3.35 million from 2018 to 2022.

The Central Valley Tax Protection Group unveiled the accusations Tuesday in a news release that includes emails and letters from City of Fresno officials. The chair person of the group — no footprint of which could be found in public records — said he asked DA Lisa Smittcamp to evaluate if City officials misappropriated public funds.

Richard Caglia, owner of Caglia Enviornmental, said on April 26 that his company was following the City’s procedures in enacting the increase, which was approved by a council vote in 2018.

The allegations come as the City of Fresno prepares for a public hearing on proposed rate increases that the Central Valley Tax Protection Group alleges would recoup the $3.35 million loss.

Through its Orange Avenue Disposal Company Subsidiary, Caglia Environmental first contracted with the City of Fresno to process waste in 2004. In 2018, Caglia reached an amendment to its agreement to add on a fuel surcharge and added an increase in the price per-ton of garbage processed. The amendment would only be valid if the City of Fresno pursued a general rate increase using the Proposition 218 protest process.

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 — didn’t begin until December 2023.

The city’s process to amend the waste contract, including a Fresno City Council vote, allowed those charges beginning in 2018. The discrepancies ranged from $407,000 to $861,000 each year through December 2022, according to a February 2023 email from a city analyst to City Manager Georgeanne White.

Once the overbilling was discovered in February 2023, city officials began disputing invoices starting with April 2023.

The self-proclaimed tax group began its own investigation, with a California Public Records Act request on Nov. 1, 2023.  Emails reveal City officials gauging the extent of the oversight.

Fresno City Councilmember Garry Bredefeld, who voted in favor of the Prop. 218 rate increase process in December, said the matter should be investigated. He doesn’t plan to ultimately support the rate increases.

Councilmembers Miguel Arias and Luis Chavez were the only members who voted against initiating the Prop. 218 process. 

Fresno City Council members are scheduled to hold a public hearing on the Prop. 218 solid waste rate increase on June 20, revised by the City on April 26 due to a public noticing error. Ratepayers will have the opportunity to protest the increase via notices mailed by the city. A simple majority is required to return the notices for the protest to be deemed valid. Without a simple majority protest, the city will request the council adopt the proposed rates, to go into effect July 1.

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Frank Lopez contributed to this report.