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Gonzales approves 10-year contract with Tri Cities Disposal; average rate increase about 13% starting July 1
Summary
The council approved a resolution authorizing a consolidated 10-year service agreement with Tri Cities Disposal (with optional 5-year extensions) and approved new garbage-collection and disposal rates that staff said average roughly 13% amid countywide cost pressures.
GONZALES — The Gonzales City Council adopted a resolution approving a 10-year franchise agreement with Tri Cities Disposal and the consolidated South Valley procurement partners, setting new garbage-collection and disposal rates effective July 1.
Patrick Matthews, general manager of the Salinas Valley Solid Waste Authority (Salinas Valley Recycles), explained the agreement was the result of a multiyear procurement process for South Valley cities after prior bids in 2023 returned rates roughly 33% above expectations. The authority and city staff negotiated a continuation of services with Tri Cities Disposal covering the cities of Gonzales, Soledad and Greenfield for an initial 10-year term through June 30, 2035, with city options for two five-year extensions.
Staff described the service package as broad compared with other jurisdictions, noting Tri Cities provides unlimited commercial recycling collection, bulky goods pickups (up to four pickups per year allowing five large items each), and street sweeping coordinated with collection. Staff also said state regulatory changes (including implementation of SB 1383 organics rules), emissions regulations, depressed recycling commodity values and higher labor costs were major drivers behind the rate increases.
The staff presentation included sample residential and commercial rate pages and noted the average rate adjustment for Gonzales customers will be about 13 percent. The contract documents and an Appendix showing the new rate schedule were included in the agenda packet. Following the public hearing and no public comment, the council voted to approve the resolution authorizing the agreement and the fiscal-year 2025–26 rates; staff will publish customer notices and implement the new rates effective July 1.
Why this matters: The agreement sets service standards and prices for basic sanitation services for the city and locks in a long-term provider; rate adjustments reflect industrywide cost pressures and state recycling and organics mandates.
Next steps: Staff will finalize the execution of the agreement, distribute rate notices to customers (including seniors and other potentially affected groups) and administer the contract through the Salinas Valley Solid Waste Authority’s contract-administration team.
