Pomona residents are set to discuss a proposal to outsource the city’s garbage and recycling programs at a public hearing next month.

At its Oct. 17 meeting, the City Council voted 5-2 to announce its intention to enter into an exclusive franchise agreement with Athens Services for an initial 10-year term with two optional five-year extensions. Council members Victor Preciado and Elizabeth Ontiveros-Cole voted against the move.

The council’s vote was procedural, City Attorney Sonia Carvalho said at the meeting. A public hearing on the matter is scheduled for November 21, pending a final decision on the contract.

If passed, Athens Services’ proposed residential rates would be $35.50 in 2023, compared to the city’s projected rate of $35.78 in January 2023. Athens would also combine multifamily and commercial services into one, providing “comparable or better at current rates.” This is stated in a report prepared by city employees.

Athens will have two years to provide the new trucks and one year to provide the new containers to residents, while they purchase and use the city’s equipment.

The contract will leave it with a $770,000 surplus in the general fund, the city said.

In addition, the city will receive $1.25 million in one-time revenue from the sale of trucks and container equipment, $800,000 in reimbursement for street sweeping signs and $250,000 in reimbursement for procurement services.

The agreement will also set aside $750,000 annually for street improvements.

City Council initiated a long process seeking an exclusive collection, recycling and disposal partner in November 2021. Proposals were received from three solid waste haulers: Athens, Burrtec Waste Industries and Waste Management.

After the city completed the evaluation and scoring process, Athens ranked highest of the three, according to the staff report.

The move comes as the city needs significant investment in internal services, including a new garbage truck, needed dumpster replacements and additional jobs, officials previously said.

Meanwhile, the city anticipated higher costs associated with Senate Bill 1383, a 2016 law that set a statewide goal of diverting 50% of waste to landfills by 2022 and 75% by 2025, while seeking to increase food recovery by 20% by 2025 year.

If the city had kept the services in-house, it would have had to raise rates by more than 40% to cover existing costs and additional costs associated with SB 1383. According to a city report, outsourcing would eliminate municipal personnel and maintenance costs by 9 million dollars.

If the city decides to outsource garbage collection, it is expected that 19 full-time positions and five part-time positions could be eliminated due to vacancies, retirement rights and commuting rights. Those employees will be offered jobs with the new contractor if they meet requirements, such as passing a drug test, the city said.

Athens will provide incentives to displaced employees, including a retention bonus of $25,000 for all full-time employees and $5,000 for all part-time employees.