Simi Valley trash hauling rates decreasing in 2024 under new Waste Management deal

Simi Valley's residential trash hauling rates will decrease in January 2024 under a renewed agreement with G.I. Industries, the city's long-time waste disposal provider.

The rates currently are about $34.82 a month.

Under the new franchise pact approved by the City Council Oct. 10, they will fall to an estimated $28.29 a month starting Jan. 1, 2024.

Come July 1, 2025, the rates will be adjusted annually based primarily on the Consumer Price Index with a 5% cap.

The agreement was extended for 10 years effective Jan. 1, with two five-year extensions at the option of the city.

Proposals from other trash hauling companies were not sought by the city.

Council members praised what they said was the good job G.I. Industries, owned by Houston-based Waste Management, has been doing as the city's waste hauler.

"I am very impressed by what WM does," said Councilwoman Elaine Litster. "Thank you for what you do for our community."

Mayor Keith Mashburn agreed.

"Thank you very much," he said to Waste Management employees sitting in the audience. "Keep up the good work."

Several public speakers also favored extending the agreement with G.I.

"I think it would be a mistake not to renew this contract," said Simi Valley resident Joe Piechowski. "They've been a good partner to this community."

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Waste Management spokesperson Jennifer Andrews said in a statement Monday that the company is grateful for the council's decision to renew.

“It’s clear that the City Council carefully considered the value WM brings to residents and businesses in Simi Valley," she said. "We’re pleased and gratified that they unanimously approved an agreement that limits rate increases while ensuring compliance with new organic waste mandates.”

G.I. Industries, which has been the city's waste hauler since 1996, takes the garbage to the Simi Valley Landfill & Recycling Center just outside town. The landfill is also owned by Waste Management.

City officials referred the Star to Waste Management for the dollar amount of the renewed agreement.

Waste Management declined to say.

But former Simi Valley Councilman Glen Becerra estimated the agreement to be worth about $300 million if it's in effect all 20 years. That would just be for residential trash hauling, he said. G.I. also provides commercial service.

Becerra is a paid consultant for Waste Management rival Athens Services who asked the city to seek proposals from other trash haulers before renewing with G.I.

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City Manager Brian Gabler said Monday the current agreement with G.I. allows the trash hauler to request an extension of the contract.

"And they made that request," he said. "And the city processed that request."

The City Council could either reject the request or grant it, he said. If they rejected it, the city could have sought proposals from other trash hauling companies, he said.

"But the council chose to accept it," he said.

A staff report says requesting proposals "could prove lengthy and require the assistance of an outside service."

The report says G.I.'s performance over the past year "has met all requirements and standards described in the current agreement."

Becerra said Monday he was "extremely disappointed that the City Council would award a 20-year contract to any vendor without making it a competitive, transparent process that involved the residents of Simi Valley."

While lauding Waste Management, Jill Abele, a member of one of the city's four neighborhood councils, agreed.

"When I consider a large project around the house, I always comparison shop," she said during public comments. "I want to get a good idea of what's out there in terms of competition."

The city says other benefits of the renewed agreement include offering senior customers a 10% discount, increasing bulky item pickup days and expanding the holiday tree collection period.

Next door in Thousand Oaks, Waste Management and E.J. Harrison & Sons, the city's trash haulers since 1998, were replaced last year by Athens. In making the change, the city cited the lower rates Athens offered.

Mike Harris covers the East County cities of Moorpark, Simi Valley and Thousand Oaks, as well as transportation countywide. You can contact him at mike.harris@vcstar.com or 805-437-0323.

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This article originally appeared on Ventura County Star: Waste Management deal to decrease Simi Valley trash rates