Trash The Fraud

What We Have Uncovered

The corruption runs deeper than we thought. Through public record requests we have uncovered a lot!  The full report is below click here to skip to the full report.

Summary

We did 4 Public Records requests:

25-6303,25-6304,25-6773,25-6774

Files:
25-6303,25-6304,25-6773,25-6774

The following Information is based on the requests:

They Promised You $23/Month. They’re Charging You $43. The Documents Prove It Was Rigged.

Four public records requests. Over 160 documents. Internal emails, spreadsheets, contracts, and protest tallies the City of San Diego never wanted you to see.

When San Diego voters approved Measure B in 2022, the City’s own Independent Budget Analyst estimated trash fees would cost $23-$29/month. On June 9, 2025, the City Council voted 5-4 to charge you $42.76/month — rising to $50.94 by 2029. That’s 47-86% higher than what you were promised. And it’s not on a utility bill. It’s on your property tax roll, meaning if you can’t pay, the City can put a lien on your home and ultimately force a tax sale of your property.

We obtained the internal records through the California Public Records Act. Here’s what they reveal — section by section, document by document.


THE BAIT-AND-SWITCH: What They Promised vs. What They Charged

The IBA’s own report (25-10) admits the gap. Voters were told $23-$29. The initial proposal came in at $53/month. After public outrage, they shaved it to $47.59, then $42.76 — not by cutting costs, but by slashing reserves from 25% to 16.7%, deferring programs, and using accounting tricks that guarantee a brutal 23.4% rate spike in FY2028 when the deferred services kick in ($42.76 jumps to $48.32 in a single year).

Where did the extra $20/month come from? The City claims it “discovered” it had been serving 285,000 properties but actually only 222,485 were eligible — meaning 62,515 properties were supposedly receiving service without the City knowing. Spread the same costs over fewer people and the per-household fee magically inflates. Meanwhile, operating costs jumped $25.7 million (from $79.1M to $104.8M) with no independent verification of why.

Service LevelFY2026FY2027FY2028FY2029
35-gal bundle$31.98$32.88$36.77$39.18
65-gal bundle$38.10$39.09$43.33$45.86
95-gal bundle$42.76$43.82$48.32$50.94

$103.5 MILLION TO ONE COMPANY — AND THEY NEVER HAD TO COMPETE FOR IT

This is the section that should make your blood boil.

In 2018, the City signed a $3 million contract with Rehrig Pacific Company, a privately-held Los Angeles corporation, for trash containers. What happened next is a masterclass in how government contracting goes wrong:

YearWhat HappenedContract Value
2018Original contract signed$3,000,000
2020First Amendment$8,545,000 (+$5.5M)
2021Second Amendment$38,807,000 (+$30.3M)
2022Third Amendment (price increases)$38,807,000
2022Fourth Amendment (new services)$38,807,000
2025Fifth Amendment$103,526,420 (+$64.7M)

That’s a 3,452% increase — from $3 million to $103.5 million — through five amendments. San Diego never once competitively bid this contract. Not once.

How? The entire deal is built on a “cooperative procurement” — the City piggy-backed on a contract that Miami-Dade County, Florida competitively bid back in 2016. A contract negotiated for Florida’s needs, at Florida’s volumes, under Florida’s market conditions — adopted wholesale for San Diego’s $103.5 million program.

Here’s the kicker: for a separate and much smaller City Facilities trash contract, San Diego ran a proper competitive bid (ITB #10090234-25-R) and got firm pricing from Allied Waste/Republic Services at $14.5 million over 5 years. The City knows how to run a competitive bid. They just chose not to do it for the hundred-million-dollar contract.

Container prices kept climbing with each amendment — 95-gallon bins went from $52.58 to $57.73 (a 9.8% increase) — and nobody checked whether the prices were still competitive. The Fourth Amendment introduced line items priced at “Market Rate” with no cap, no formula, and no definition. That’s a blank check written on your tax bill.

The City’s own internal spreadsheet (SDPRA-005704.xlsx) shows the real container cost projection:

ItemAmount
Cart purchase cost$39,856,725
Assembly & Delivery (750,000 carts)$3,937,500
Reclamation (950,000 carts)$6,412,500
Freight$2,000,000
Annual replacements (5 years)$11,000,000
Swap outs$2,000,000
15% Contingency$9,867,409
Proposed NTE$114,457,134

The debt service on the $41.5 million container purchase alone adds $10 million in interest — paid by you — on containers you never asked for.

Rehrig Pacific is a private company with zero public financial disclosure. We have no idea what their margins are on this contract. What we do know is that one company has a monopoly on San Diego’s container program, has never faced competition for it, and just got handed another $64.7 million.


THE RATE WAS REVERSE-ENGINEERED — INTERNAL EMAILS PROVE IT

This is the most damning finding in the entire records production.

Under Prop 218, a fee must be calculated by determining actual costs of service, then deriving a rate. You calculate costs first, rate second. The City did it backwards.

Internal emails from January 2025 show Jeremy Bauer, the ESD Assistant Director, writing to HF&H Consultants (the firm building the financial model): “I would like to see what rates will look like if we landed on a year 1 negative balance of up to ($15,000,000) or less and a year 2 balance of either up to ($5,000,000) or even a positive number by year 2.”

He didn’t ask “what do our costs add up to?” He asked “what rate do we need to hit my target fund balance?” That’s not a cost-of-service study. That’s a reverse-engineered tax dressed up as a fee.


ENHANCEMENT PRICES WERE INFLATED FOR PUBLIC PRESENTATION

An internal spreadsheet (SDPRA-005829.xlsx) shows the actual estimated cost ranges the City had for each service enhancement — and what they showed the public at open houses:

EnhancementWhat the City Knew It Could CostWhat They Told You
Weekly Recycling$1.84 – $5.45/month$5.50/month
Bulky Item Collection$1.35 – $4.23/month$4.25/month
Extra Trash Collection$0.68 – $2.12/month$2.25/month
Free Bin Replacement (Initial)$0.83 – $1.66/month$1.75/month
Free Bin Replacement (Ongoing)$0.48 – $1.91/month$2.00/month

Every single enhancement was presented at or above the high end of the internal estimate. You never saw the low-end numbers. Two cost items — “Improve Existing Services” and “Add More Customer Service” — were deliberately hidden from public display entirely, marked internally as things the City was “planning to do anyway.”

And to cover the fact that the new fund starts $5 million in the red, the City plans a “one-day loan from another City department” at fiscal year-end to show a $0 balance on paper. That’s not budgeting. That’s an accounting gimmick.


46,132 PEOPLE PROTESTED — THE CITY MADE SURE IT WASN’T ENOUGH

Under Proposition 218, a majority protest (113,249 signatures — 50%+1 of affected parcels) would have killed the fee. 46,132 residents formally protested — the largest Prop 218 protest in San Diego history — but it reached only 40.8% of the threshold.

Why? Because the process was engineered to suppress opposition. A retired attorney with 40+ years of experience filed an 8-page protest cataloguing exactly how:

  1. Deceptive envelope — no markings indicating what was inside. Looked like junk mail. Many residents likely threw it away.
  2. No prepaid return envelope — ironically, when Measure B was on the ballot, the City included prepaid return postage. For the protest? Find your own stamp, envelope, and address it yourself.
  3. Protest form buried on page 6 — after pages of dense single-spaced text designed to be skimmed and discarded.
  4. Email and fax protests banned — Resolution R-2025-493 explicitly prohibited electronic protests. In 2025.
  5. Return address was incorrect — no comma or line break between “2T” and “San Diego,” causing potential delivery failures.
  6. Form didn’t ask for a printed name — just a signature, making it easier to reject protests as unverifiable.
  7. Notices sent to 20,369 ineligible properties — then their protests were discarded when the City decided those properties didn’t qualify.
  8. Silence counted as consent — if you didn’t respond, the City counted you as supporting the fee.
  9. 504 late-arriving protests not counted — many likely mailed on time but were delayed by USPS.

As Dave Elmore of San Ysidro put it: “Why is the city making it so difficult for people to voice their opinion about this proposal? Is it because the city is incompetent or dishonest?”

The resolution certifying the protest results (R-2025-590) doesn’t even disclose the actual count. It just says a majority protest wasn’t achieved. The 46,132 number only came to light through our Public Records Act request.


$75 MILLION IN CITY-TO-CITY CHARGES — NOBODY CHECKED THE MATH

More than half of your trash fee goes to internal City charges that no one independently verified:

Internal ChargeAnnual Amount
City dumping at its own Miramar Landfill$23,000,000
City renting trucks from its own Fleet Dept$36,400,000
City charging its own IT, admin, overhead$16,000,000
Total unverified internal charges$75,400,000

The consultants who built the rate study (HF&H) explicitly admitted: “We did not independently verify that information.” They took every City department’s self-reported costs at face value — from departments with a direct financial interest in maximizing their allocations.

On top of that, $52.97 million in SB 1383 bond debt (new green bins and organics trucks financed through 2023 General Fund bonds) is being shifted to the trash fee. That’s debt the General Fund took on — now it’s your problem. And $10.3 million in pre-fee startup costs (consultants, mailers, Salesforce portals) were baked into the rate before a single dollar of service was delivered.

The City’s budget priorities memo is the smoking gun: it stated “trash services to be halted pending the implementation of fees as a cost recovery measure.” Then it listed 10 “trash” budget priorities — none of which are residential trash pickup: Parks & Rec trash collection, La Jolla beautification, river cleanup, downtown trash receptacles, “Cash for Trash.” Under Prop 218, those General Fund responsibilities cannot legally be included in a property-related fee.


THE CITY’S OWN CONSULTANT SAYS OPERATIONS ARE BROKEN

The City paid HDR Engineering $4.5 million for an operational study. Their own findings are devastating:

  • 83% truck availability — not a single week in the first half of 2024 where all needed trucks were running
  • 1,028 missed pickups per week — 25,750 in just six months
  • 58 vehicles (31%) operating past their retirement date
  • $49.6 million in lifetime repairs on a fleet that cost $64.7 million to buy
  • 96% of maintenance work orders are repairs vs. 4% preventive — an inversion of every industry best practice
  • No route rebalancing since 2018 — some routes now take 10+ hours
  • The Miramar Yard facility, built in the late 1980s, has been “largely untouched” since 1999 — lifts red-tagged, no hot water, no training rooms

The sequencing is backwards. You’re being charged $42.76/month to fix problems caused by years of City mismanagement. As hundreds of survey respondents wrote: fix the service first, then charge us for it.


THE “PUBLIC ENGAGEMENT” WAS A $1.7 MILLION PR CAMPAIGN

HDR was paid $1,698,000 for “community engagement” — 8,490 hours of consultant time at ~$200/hour. But it wasn’t engagement. It was narrative management.

  • No “no fee” option was ever offered. Every survey forced residents to choose between Option A (lower fee) and Option B (higher fee). One resident called it “the force choice survey.” Another called it “a ridiculous, convoluted and manipulative survey leading to SCOPE CREEP and maximizing rate hike.”
  • The City’s own Survey 1 found 84% of respondents were satisfied or very satisfied with current trash service. They charged you $42.76/month anyway.
  • HDR tracked media coverage, noted 64% negative sentiment on social media, and recommended having CBOs and council members write letters to the editor supporting the fee.
  • Community organizations were paid $1,000 “sponsorship fees” — then their support was cited as evidence of community backing.
  • The cost model was still being changed during public outreach. HF&H noted in December 2024 that the model “looks like there are still missing costs and moving costs.” The numbers shown to residents at open houses were preliminary and in flux.
  • HF&H’s own president pushed back on the City’s demand for a rushed timeline: “This is a big change from the original plan and I need to understand it better.”

THE LEGAL SHORTCUTS THAT MAKE THIS VULNERABLE

The procedural corners that were cut read like a checklist of how NOT to adopt a fee:

  • Environment Committee bypassed — the fee was presented as “Information Item” only. No committee vote. No recommendation. It went straight to full Council.
  • Everyone charged the maximum rate — all 226,497 parcels billed $523.20 (the 95-gallon price) regardless of chosen bin size. Smaller-bin customers overpay for a full year.
  • 24% container data accuracy — the City’s own presentation admitted only 24% of container data accurately connected containers to paying customers. Eligibility decisions affecting your financial obligations were made on this data.
  • 20,369 properties kicked off City service — the City Manager changed the Waste Management Regulation on March 25, 2025, without a Council vote, displacing 56,051 housing units to private haulers at unregulated rates.
  • Financial assistance program never adopted — staff presentations tout a “$3M Financial Assistance Program” for low-income residents. No resolution established or funded it. It’s a slide on a PowerPoint.
  • The health code may not even apply — Clifford Weiler’s legal protest argues that Health & Safety Code §5470-5473, which the City used for tax roll collection, applies to sanitary sewers, not solid waste. If he’s right, the entire collection mechanism is invalid.
  • An amended resolution in January 2026 (R-2026-9) suggests there was a defect in the original adoption that required post-hoc correction.
  • The CEQA exemption may be insufficient — the City filed a categorical exemption for “Rates, Tolls, Fares, and Charges,” but the fee funds a $17M cart facility, $4M welding shop, EV pilot, and 1.4 million container replacements — capital projects that may have physical environmental impacts.

WHAT YOU CAN DO — THIS IS NOT OVER

Legal

  1. Prop 218 Challenge — Cost Shifting: The budget priorities memo is documentary evidence that General Fund costs (parks trash, river cleanup, downtown receptacles) were shifted into the fee. That’s illegal under Prop 218.
  2. Prop 218 Challenge — Notice Deficiencies: At least 9 documented deficiencies in the protest process. Any one could independently invalidate the fee.
  3. Prop 218 Challenge — Paying for Services Not Yet Provided: You’re paying in FY2026 for weekly recycling that doesn’t start until FY2028.
  4. HSC §5470 Challenge: The tax roll collection statute may not legally apply to solid waste.
  5. Brown Act Challenge: 1-2 minute speaking limits and a compressed 48-day timeline (barely above the 45-day minimum) may constitute denial of meaningful public participation.

Political

  1. Demand a City Auditor investigation of the Rehrig contract. Five amendments, $103.5 million, zero competitive bidding, “market rate” blank checks — this contract needs independent audit.
  2. Demand full transparency on the protest count. The City never publicly disclosed how many people protested. 46,132 people deserve to be heard.
  3. Organize before the FY2029 rate case. The adopted rates cover through FY2029. The next rate case is your chance to challenge the entire structure with actual cost data.
  4. Target the FY2028 rate spike. A 23.4% increase in a single year for services that don’t exist yet is the clearest, simplest outrage for public messaging.
  5. Keep filing Public Records Act requests. The City initially resisted producing these documents. Everything in this report came from persistent CPRA enforcement.

Electoral

The vote was 5-4.

YES — Whitburn, von Wilpert, Lee, Campbell, Moreno
NO — Campillo, Lukas, Foster, Elo-Rivera

As disabled Navy veteran Roy Nguyen wrote to the Council: “We will remember at election time which officials stood up for the taxpayers and which ones treated us like a piggy bank.”


THE BOTTOM LINE

San Diego voters were promised $23-$29/month. They’re paying $42.76 — headed to $50.94. Internal documents show the rate was reverse-engineered from desired fund balances, enhancement prices were inflated for public presentation, and the cost model was still changing while the public was being “engaged.”

The City handed $103.5 million to a single private company through five no-bid amendments — growing a $3 million contract by 3,452% — while charging you $75 million/year in unverified internal fees and shifting $53 million in General Fund bond debt onto your property tax bill.

46,132 residents formally protested — more than any Prop 218 fee in San Diego history — and were overruled by a process structurally designed to suppress opposition: no prepaid envelope, a deceptive mailer, email protests banned, and silence counted as consent.

The City’s own consultant documented a department that can’t keep 83% of its trucks running, misses 1,028 pickups per week, and hasn’t rebalanced routes since 2018 — yet residents are being charged first and promised improvements later.

This is not a cost-of-service fee. It is a cost-shifting mechanism dressed up as one. The documents prove it. And now you have them too.


This summary is based on documents obtained under the California Public Records Act (requests 25-6303, 25-6304, 25-6773, and 25-6774). The full analysis with complete document citations is below.

Share this. Forward it. Print it. Bring it to your next council meeting. The City counted on your silence — 46,132 San Diegans already proved them wrong.

Full Analysis Report

San Diego Solid Waste Management Fee — Complete Public Records Analysis

Prepared from documents obtained via San Diego Public Records Act requests 25-6303, 25-6304, 25-6773, and 25-6774 Date: March 17, 2026

TABLE OF CONTENTS

  1. Executive Summary
  2. The Bait-and-Switch: What Voters Were Promised vs. What They Got
  3. The Prop 218 Protest Was Designed to Fail
  4. Illegal Cost-Shifting from General Fund to Ratepayers
  5. The $103.5 Million No-Bid Rehrig Pacific Monopoly
  6. The Rate Study Was Rigged — Internal Documents Prove It
  7. The City’s Own Consultant Says Operations Are Broken
  8. The Public Engagement Was Performative Theater
  9. The Procedural Shortcuts and Legal Vulnerabilities
  10. What Citizens Can Do
  11. Appendix: Document Index

1. EXECUTIVE SUMMARY

On June 9, 2025, the San Diego City Council voted 5-4 to impose a new Solid Waste Management Fee on approximately 226,495 residential properties. The most common fee is $42.76/month ($523.20/year), escalating to $50.94/month by FY2029. This fee is collected through the County property tax roll, meaning non-payment can trigger property tax delinquency, penalties, and ultimately a tax lien sale of your home. This analysis is based on a thorough review of every document produced in four Public Records Act requests totaling over 160 files — contracts, internal communications, spreadsheets, staff reports, resolutions, public correspondence, rate studies, surveys, and more. What the documents reveal:
  • Voters were promised fees of $23-$29/month when they approved Measure B in 2022. The adopted fee is $42.76/month — 47-86% higher than promised.
  • The City worked backwards from desired fund balances to set rates, rather than calculating actual costs — internal emails prove this.
  • The City paid $103.5 million to a single vendor (Rehrig Pacific) without ever competitively bidding the contract in San Diego — the contract grew from $3 million to $103.5 million through five amendments.
  • The City’s own $4.5 million consultant found the trash department is operationally broken — only 83% of trucks work, 1,028 missed pickups per week, no route rebalancing since 2018 — yet the City is charging residents first and fixing operations later.
  • Enhancement prices shown to the public at open houses consistently used the high end or above the high end of internal cost ranges — weekly recycling was estimated internally at $1.84-$5.45/month but was presented to the public as $5.50.
  • 46,132 residents formally protested — the largest protest in San Diego Prop 218 history — but the City Council passed the fee anyway because the 50%+1 threshold (113,249) was not met.
  • The protest process was structurally designed to suppress opposition: no prepaid return envelope, deceptive envelope with no indication of contents, email and fax protests banned, protest form buried on page 6 of the notice.
  • Every single property is being charged $523.20 on their tax bill regardless of container size — even though the adopted fee schedule has lower rates for smaller containers. Customers who want a smaller bin are overcharged for the entire first year, with a “credit” promised on the following year’s tax bill.

2. THE BAIT-AND-SWITCH: What Voters Were Promised vs. What They Got

What Measure B Promised (November 2022)

When Measure B was placed on the ballot in November 2022, the City’s own Independent Budget Analyst prepared a Fiscal Impact Statement estimating fees would range from $23 to $29 per month.
“At that time, we estimated that the fees necessary to cover then-current costs, as well as some known additional costs, would range from $23 to $29 per month per customer.” — IBA Report 25-10, p. 3

What Was Actually Adopted (June 2025)

Service Level Adopted Monthly Fee (FY2026) FY2027 FY2028 FY2029
35-gal bundle $31.98 $32.88 $36.77 $39.18
65-gal bundle $38.10 $39.09 $43.33 $45.86
95-gal bundle $42.76 $43.82 $48.32 $50.94
The most common fee ($42.76) is 47% higher than the $29 high-end estimate. The fee will reach $50.94 by FY2029 — 76% higher than promised.

Where Did the Extra $20/Month Come From?

The IBA identified five drivers of the increase:
Driver Monthly Impact Source
Customer count shrank from 285,000 to 222,485 +$8/month IBA Report 25-10, p. 3-4
Operating costs jumped $25.7M (from $79.1M to $104.8M) +$8/month IBA Report 25-10, p. 4
New services added (weekly recycling, bulky pickup, etc.) +$13/month IBA Report 25-10, p. 6-7
Recycling Fund and Container Fund offsets applied -$6/month IBA Report 25-10, p. 8
Revenue from additional bins allocated to second bins -$4/month IBA Report 25-10, p. 8
The customer count “discovery” is particularly suspicious. The City claimed it had been serving 285,000 properties but, upon closer examination for the fee, found only 222,485 were eligible. That means 62,515 properties were supposedly receiving service without the City knowing it. Spreading the same costs over fewer people automatically inflated the per-household fee.
“ESD had historically estimated that its customer base was around 285,000 addresses… However, after the rollout of green containers in 2023 and additional due diligence work done in preparation for the COS study, it was determined that only 222,485 addresses are eligible for service.” — IBA Report 25-10, p. 3-4

The Fee Started at $53 — Even After Reductions

The initial version presented to the Environment Committee in February 2025 was $53/month. After IBA intervention, it dropped to $47.59 (April study), then to $42.76 (May study). The IBA identified all the reductions were achievable, but the most impactful mitigation options came with tradeoffs that simply deferred costs to later years. The result: an artificial 23.4% rate spike in FY2028 when deferred services kick in ($42.76 → $48.32 in a single year).

3. THE PROP 218 PROTEST WAS DESIGNED TO FAIL

The Numbers

Under Proposition 218, a fee can be blocked if a majority (50%+1) of affected property owners formally protest. Here are the numbers:
Metric Count Source
Eligible parcels ~226,497 Eligibility Memorandum
Protests needed to block (50%+1) 113,249 Processed Tally, p. 2
Valid completed protests received 46,132 Processed Tally, p. 1
Incomplete/questionable protests 2,634 Processed Tally, p. 1
Late-arriving protests (not counted) 504 Processed Tally, p. 2
Invalid protests thrown out 324 Processed Tally, p. 2
46,132 protests is the largest Prop 218 protest in San Diego history — yet it reached only 40.8% of the threshold needed to block the fee.

How the Process Was Designed to Suppress Opposition

A retired attorney with 40+ years of experience filed an 8-page detailed protest cataloguing how the City structurally suppressed protests:
  1. Deceptive envelope: “Sent in a deceptive envelope, without any marking on the outside indicating any purpose of the contents… would likely have been considered equivalent to junk mail.”
  2. No prepaid return envelope: “Ironically, the Voter Pamphlet for when Measure B was passed included a prepaid return for potential voters; none was included with the Notice at issue.” Residents had to find their own envelope, stamp, and address it correctly.
  3. Protest form buried on page 6: “A single paragraph headed ‘Do I have the right to protest the proposed fee?’ was continued on page 5, after several pages of single spaced information.”
  4. Email and fax protests banned: Resolution R-2025-493, Section 9 explicitly stated that protests submitted by email or facsimile would not be counted.
  5. Return address was incorrect: “The address for returning the protest form… was incorrect (no comma or indication of a next line on the envelope, between 2T and San Diego).”
  6. Form did not ask for printed name: The protest form “did not indicate/require or suggest that under the blank personal identifier lines (or anywhere on the form), ‘Print or Type your name'” — meaning protest forms could be rejected because identity couldn’t be confirmed from a signature alone.
  7. Notices sent to ineligible properties — then their protests discarded: The City sent Prop 218 notices to ~20,369 properties later determined ineligible.
  8. Silence counted as consent: As disabled Navy veteran Roy Nguyen wrote: “If a property owner does not respond, their silence is effectively counted as support for the fee… a perversion of democratic principles.”
  9. Late-arriving protests not counted: 386 protests arrived the day after the hearing (June 10), and 504 total arrived late — none were counted.

Dave Elmore’s Summary

“The city stated in a ballot measure that the rate would be under $30 and after the measure passed raised the price by 50% claiming they made a bookkeeping error… Days later the city now said that complaints that didn’t match how the property was titled wouldn’t be valid. Why is the city making it so difficult for people to voice their opinion about this proposal? Is it because the city is incompetent or dishonest?” — Dave Elmore, Elmore Rentals, San Ysidro

4. ILLEGAL COST-SHIFTING FROM GENERAL FUND TO RATEPAYERS

The Budget Priorities Memo Smoking Gun

The City’s FY2026 budget priorities memo stated: “trash services to be halted pending the implementation of fees as a cost recovery measure for the City.” The City’s first published FY2026 budget priorities mention “Trash” 10 times. None of the “Trash” priorities represent the pickup/processing/disposal of residential trash under Measure B authority. They include:
  • Increased Parks & Rec Trash Collection in general
  • Increased La Jolla Parks & Rec Trash Collection as a specific item
  • Reduce trash runoff into rivers and ocean
  • Increased funding to Clean SD for removal of environmental trash
  • Increased public right of way corner trash can service
  • Replace 100 damaged and outdated trash receptacles (assumed to be “downtown”)
  • Cash for trash and trash services
“NONE OF THESE COSTS IS ALLOWABLE IN THE COST-OF-SERVICE STUDY – NOR CAN ANY OF THE COSTS ABOVE BE ALLOCATED TO RESIDENTIAL MEASURE B TRASH SERVICE COSTS.” — Template letter campaign by JL Giamanco and others
Under Proposition 218, a fee cannot exceed the proportional cost of providing the specific service to the charged property. General public benefits like parks trash pickup, La Jolla beautification, river cleanup, and downtown trash receptacles must be paid from the General Fund.

The City Charges Itself — and Passes the Bill to You

The rate study reveals over $75 million in internal City-to-City charges annually that ratepayers are now paying:
Internal Charge Annual Amount Source
Solid Waste Disposal (City’s own Miramar Landfill) $22,965,741 May Rate Study, Attachment D
Vehicle Costs (City Fleet Department) $36,403,558 May Rate Study, Attachment D
Overhead Costs (IT, admin, etc.) $15,976,088 May Rate Study, Attachment D
Total internal charges $75,345,387
These internal transfers — more than half the total revenue requirement — were taken at face value from City departments with a financial interest in maximizing their allocations. The consultant (HF&H) explicitly stated:
“HF&H relied on operational and financial information provided by City staff… we did not independently verify that information.” — May Rate Study Report, Limitations section

$10.3 Million in Pre-Fee Spending Baked Into Your Bill

Before a single dollar of fee revenue was collected, the City spent $10.3 million on consultants and startup costs — all passed through to ratepayers:
Item Amount
HDR Engineering contract $3,600,000
Deloitte (Salesforce portal) $3,550,000
Measure B Team staff time $1,390,000
Cook & Schmidt (promotion) $166,000
Carahsoft Contract $249,000
Portal Mailers $235,000
Prop 218 Mailers $152,000
Container Staging Area Rental $241,000
Other $447,847
Total $10,290,847

SB 1383 Bond Debt Dumped on Ratepayers

The City financed SB 1383 compliance (new green bins and organics trucks) through 2023A Lease Revenue Bonds backed by the General Fund. Now those debt payments — $4,414,228 per year for 12 years ($52.97 million total) — are being shifted to the new trash fee fund.

5. THE $103.5 MILLION NO-BID REHRIG PACIFIC MONOPOLY

A Contract That Grew 3,452%

Event Date Not-to-Exceed Amount
Original Contract Jan 2, 2018 $3,000,000
First Amendment Jan 6, 2020 $8,545,000 (+$5.5M)
Second Amendment Sep 15, 2021 $38,807,000 (+$30.3M)
Third Amendment Feb 22, 2022 $38,807,000 (price increase)
Fourth Amendment Dec 30, 2022 $38,807,000 (new services)
Fifth Amendment Jul 14, 2025 $103,526,419.69 (+$64.7M)

San Diego Never Competitively Bid This Contract

The entire contract is based on a “cooperative procurement” — meaning San Diego piggy-backed on a contract that Miami-Dade County, Florida competitively bid in 2016 (RFP No. 00254). No San Diego-based vendor ever had the chance to compete.
“The existing contracting request was approved by the Purchasing and Contracting Department on August 10, 2017, in accordance with San Diego Municipal Code §22.3208, who verified that the contract was in the best interest of the City.” — Staff Report, p. 2
Meanwhile, for a separate and much smaller City Facilities Trash contract, San Diego ran a proper competitive bid (ITB #10090234-25-R) and got firm pricing from Allied Waste/Republic Services at $14.5 million over 5 years. The City knows how to run a competitive bid. They just chose not to do it for the $103.5 million Rehrig contract.

Container Prices Kept Rising — No Competition Check

Item 2nd Amendment (2021) 3rd Amendment (2022) Increase
95-gal container (ROC-95) $52.58 $57.73 +$5.15 (+9.8%)
65-gal container (ROC-65) $45.17 $49.61 +$4.44 (+9.8%)
35-gal container (ROC-35) $38.53 $42.05 +$3.52 (+9.1%)

“Market Rate” = Blank Check

The Fourth Amendment introduced two line items priced at “Market Rate” with no cap, formula, or definition:
  • SB 1383 Roll-out shipment: “Market Rate”
  • Food waste container shipment: “Market Rate”

Internal Spreadsheet Shows the Real Container Cost

The City’s internal cost model reveals the full scope of the Rehrig deal:
Item Amount
Cart purchase cost $39,856,725
Assembly & Delivery (750,000 carts at $5.25 each) $3,937,500
Reclamation (950,000 carts at $6.75 each) $6,412,500
Freight $2,000,000
Annual replacements (5 years) $11,000,000
Swap outs $2,000,000
15% Contingency $9,867,409
Proposed NTE $114,457,134
The debt service on the $41.5 million container purchase alone totals $51,333,932 including interest — $10 million in interest paid by San Diego ratepayers on containers they never asked for.

6. THE RATE STUDY WAS RIGGED — Internal Documents Prove It

Rates Were Set By Working Backwards

The most damning finding in the entire records production. Internal emails between Jeremy Bauer (City, ESD Assistant Director) and the HF&H Consultants show the City worked backwards from desired fund balances to set rates, rather than calculating actual costs:
Jeremy Bauer to HF&H: “I would like to see what rates will look like if we landed on a year 1 negative balance of up to ($15,000,000) or less and a year 2 balance of either up to ($5,000,000) or even a positive number by year 2 (ideally).” — Internal email, January 2025
This is the opposite of how a legitimate Prop 218 cost-of-service study is supposed to work. Under Prop 218, you calculate actual costs, then derive the fee from those costs. You don’t pick a target balance and reverse-engineer a rate to hit it.

Enhancement Prices Were Inflated for Public Presentation

An internal spreadsheet shows the actual estimated cost ranges for service enhancements alongside what was presented to the public at open houses:
Enhancement Internal Estimate Range Price Shown to Public
Weekly Recycling Pickup $1.84 – $5.45/month $5.50/month
Bulky Item Collection (2x/year) $1.35 – $4.23/month $4.25/month
Extra Trash Collection (2x/year) $0.68 – $2.12/month $2.25/month
Free Bin Replacement (Initial) $0.83 – $1.66/month $1.75/month
Free Bin Replacement (Ongoing) $0.48 – $1.91/month $2.00/month
Every single enhancement was presented at or above the high end of the internal estimate. The public never saw the low-end numbers. Additionally, two cost items were deliberately hidden from public display: “Improve Existing Services” and “Add More Customer Service” — both marked internally as “We are planning to do this anyway as part of our enhanced baseline” — meaning the City was going to include these costs in the fee regardless but did not want the public to see them priced individually.

The “One-Day Loan” Accounting Gimmick

The rate study reveals the Solid Waste Management Fund starts $5 million in the red and stays negative for two years:
Year Projected Year-End Balance
FY 2025-26 ($4,958,761)
FY 2026-27 ($3,489,676)
FY 2027-28 $3,160,000
To mask this, the City plans to use a “one-day loan from another City department to show a $0 balance at the end of each fiscal year.”

San Diego Costs More Than Comparable Cities

The City’s own benchmarking spreadsheet shows San Diego’s proposed rate is among the highest in Southern California:
City Monthly Rate (95-gal) Service Type
La Mesa $27.33 Franchised
Carlsbad $29.42 Franchised
Chula Vista $36.80 Franchised
Riverside $36.80 Municipal
Bakersfield $37.32 Municipal
San Diego (proposed) $53.00 initial / $42.76 adopted Municipal
San Diego uses a municipal workforce (theoretically cheaper than private haulers) yet charges more than cities using franchised private haulers.

Aggressive Inflation Assumptions Guarantee Overpayment

The rate model assumes:
  • Labor: 3.05%/year (compounding to 16.2% over 5 years)
  • Fuel: 4.80%/year declining to 4.50%
  • Cart costs: 4.80%/year declining to 4.50%
  • Disposal: 3.50%/year
If actual inflation comes in lower, the fund generates surplus — but there is no mechanism to return overpayments to ratepayers.

7. THE CITY’S OWN CONSULTANT SAYS OPERATIONS ARE BROKEN

HDR Engineering conducted an Operational Efficiency Analysis (October 2024) that documents a department in crisis. The City is now charging residents to fix problems caused by years of mismanagement.

Only 83% of Trucks Work on Any Given Day

“From January to June 2024, there was not a single week where 100% of the trucks needed to service all routes were available.” — San Diego Task 8 Operational Efficiency Analysis
  • 190 trucks in the fleet, but 25% (47 vehicles) are more than 7 years old
  • 58 vehicles (31%) are operating past their City-defined retirement date
  • $49.6 million spent on lifetime repairs for a fleet that cost $64.7 million to purchase
  • Top 20 most expensive trucks: $651,000-$949,000 each in lifetime repairs
  • 96% of fleet work orders are repairs vs. 4% preventive maintenance — an inversion of best practice
  • Zero vehicles purchased for model year 2022, then 61 panic-purchased for 2023

1,028 Missed Pickups Per Week

  • 25,750 missed pickup cases were filed from January-June 2024 alone — an average of 1,028 per week
  • Cases stay open an average of 6.3 days, with a maximum of 76 days
  • 26% of cases (6,628) had no comments entered by staff — no closure explanation
  • Thursdays are worst: 7,347 MPU cases vs. 4,938 on Mondays

No Route Rebalancing Since 2018

Route bidding hasn’t been comprehensively completed since 2018. Some routes now take more than 10 hours to complete. The overtime ban imposed in February 2024 forced drivers to leave routes incomplete, directly increasing missed pickups.

Decrepit Facilities

The Miramar Yard facility was built in the late 1980s by Waste Management and has been “largely untouched” since the City purchased it in 1999:
  • Two in-ground lifts and one platform lift are red-tagged as nonoperational (20+ years old)
  • Hot water pressure washer is not operational
  • Cart storage is outdoors and uncovered, causing water damage
  • No adequate training rooms or computer lab access

The Sequencing Is Backwards

Residents are being charged to fix problems that resulted from years of deferred maintenance. As hundreds of survey respondents wrote: fix the service first, then charge us for it.

8. THE PUBLIC ENGAGEMENT WAS PERFORMATIVE THEATER

$1.7 Million Spent on “Engagement” — Designed to Validate, Not Consult

HDR Engineering was paid $1,698,000 for community engagement alone (Task 3 of their contract), with 8,490 hours of consultant time at ~$200/hour.

No “No Fee” Option Was Ever Offered

Every survey question assumed a fee would be charged. There was never a yes/no question on whether residents wanted a fee at all. Residents were forced to choose between Option A (lower fee) and Option B (higher fee).
“No option for ‘no fee / no new services’ — every option assumed a fee… One resident called it ‘the force choice survey’ and another called it ‘a ridiculous, convoluted and manipulative survey leading to SCOPE CREEP and maximizing rate hike.'”

84% Were Already Satisfied — Yet Charged $42.76/Month

The City’s own Survey 1 found that 84% of respondents were satisfied or very satisfied with current trash service (29% very satisfied + 55% satisfied).

HDR Managed the PR Narrative, Not an Independent Study

Internal communications reveal HDR was acting as the City’s strategic communications partner, not an independent analyst:
  • HDR tracked media coverage and public sentiment, noting 64% negative sentiment on social media in February 2025
  • HDR recommended having CBOs and council members write letters to the editor supporting the fee
  • HDR staff recommended “proactively setting the narrative straight” before open houses
  • Community organizations were paid $1,000 “sponsorship fees” through CBO agreements — their support was then cited as evidence of community backing

The Cost Model Was Still Being Changed During Public Outreach

HF&H Consultants noted on December 30, 2024: “The model on the HDR SharePoint is still being edited regularly by your staff… it looks like there are still missing costs and moving costs.” The numbers shown to residents at open houses were preliminary and in flux — yet were presented as the basis for the fee.

The COS Report Timeline Was Rushed Under Political Pressure

“I just got a briefing from my team on your request for a revised/accelerated timeline for the COS Report. This is a big change from the original plan and I need to understand it better before I can make commitments to anything other than the 3/31 timeline we proposed.” — Rob Hilton, President of HF&H

The Environment Committee Was Bypassed

The fee was presented to the Environment Committee on February 13, 2025 as an “Information Item” only — the Committee was not permitted to vote or make a recommendation. The fee then went directly to full City Council on June 9, 2025, via a Supplemental Docketing Memo from Council President Pro Tem Whitburn.

Protest Count Was Never Publicly Disclosed

Resolution R-2025-590 simply states a majority protest was not achieved — but does not disclose the actual count, percentage, or how close the tally was. The 46,132 figure comes only from the Processed Tally obtained via PRA.

Everyone Charged 95-Gallon Price Regardless of Container Size

The Report of Parcels (4,043 pages) shows every single parcel charged a flat $523.20 — the 95-gallon rate — regardless of what container size the homeowner wants. Customers who choose a smaller bin are overcharged for the entire first year, with a “credit” promised on the following year’s tax bill.

Tax Roll Collection Creates Extreme Consequences for Non-Payment

Because the fee is on the property tax roll, failure to pay triggers:
  • 10% penalty
  • 1.5% per month interest
  • Ultimately a tax lien sale of the property
As the Pacific Southwest Association of REALTORS (3,500+ members) warned:
“Linking the trash fee to the property tax roll places a disproportionate burden on homeowners with limited or fixed incomes, especially seniors… unpaid property taxes can ultimately lead to tax liens and foreclosure.”

The Health & Safety Code May Not Apply to Solid Waste

Clifford Weiler filed a detailed legal protest arguing that Health & Safety Code sections 5470-5473 — the statute the City relied on for tax roll collection — applies to sanitary sewers, not solid waste:
“HSC Section 5470 is part of Division 5 ‘Sanitation,’ Part 3 ‘Community Facilities,’ Chapter 6 ‘General Provisions with respect to sewers,’ Article 4 ‘Sanitation and sewerage systems.’ None of the definitions in HSC 5470 include solid waste management.”

An Amended Resolution in January 2026 Suggests a Procedural Defect

Resolution R-2026-9, adopted in January 2026, appears to amend/correct the original June 2025 fee adoption. The existence of this post-hoc correction suggests there was a defect in the original adoption that required fixing after the fact.

24% Container Data Accuracy

The City’s own staff presentation admitted that only 24% of container data accurately connected containers to paying customers. Eligibility determinations affecting property owners’ financial obligations were made on this data.

20,369 Properties Kicked Off City Service by Administrative Rule

The City Manager changed the Waste Management Regulation on March 25, 2025 — without a Council vote — narrowing who qualifies for City service. This displaced 20,369 properties (56,051 housing units) from City service to private haulers at unregulated rates.

Financial Assistance Program Was Never Actually Adopted

Staff reports and presentations repeatedly cite a “$3M Financial Assistance Program” as a mitigating factor for low-income residents. But no resolution established or funded this program. It remains aspirational.

CEQA Exemption May Be Insufficient

The City filed a categorical exemption under CEQA Guidelines Section 15273 (“Rates, Tolls, Fares, and Charges”). But the fee funds capital improvements ($17M cart facility, $4M welding shop, EV pilot, 1.4 million container replacements) and triggers operational changes (doubling recycling collection frequency in FY2028) that may have physical environmental impacts not covered by this exemption.

10. WHAT CITIZENS CAN DO

Strongest Legal Angles

  1. Prop 218 Challenge — Cost Shifting: The strongest case is that the fee includes costs for general governmental services (Parks & Rec trash, river cleanup, downtown receptacles) that Prop 218 prohibits in a property-related fee. The budget priorities memo is documentary evidence of intent.
  2. Prop 218 Challenge — Notice Deficiencies: The retired attorney’s 8-page protest documents at least 9 specific ways the notice process violated Article XIIID requirements. Each deficiency could independently invalidate the fee.
  3. Prop 218 Challenge — Charging for Services Not Yet Provided: Customers are paying in FY2026 for weekly recycling that doesn’t start until FY2028. Prop 218 requires fees to reflect the cost of services actually provided.
  4. HSC 5470 Challenge: Clifford Weiler’s argument that the health code sections used for tax roll collection apply to sanitary sewers, not solid waste, could invalidate the entire collection mechanism.
  5. Brown Act Challenge: The 1-2 minute speaking limit at the public hearing, combined with the compressed timeline (48 days, barely above the 45-day minimum), may constitute a denial of meaningful public participation.

Political Actions

  1. Demand the IBA’s $42.72 Option: The IBA identified feasible mitigations that could reduce the fee to $42.72/month — the Council adopted $42.76 but declined further reductions.
  2. Demand a City Auditor Review of the Rehrig Contract: Five amendments, $103.5 million, no competitive bidding, 90% lock-in, “market rate” blank checks — this contract needs independent audit.
  3. Demand Full CPRA Compliance: Mark Nelson reported the City refused to produce records. Continue filing and escalating Public Records Act requests.
  4. Organize Before the FY2029 Rate Case: The adopted rates cover through FY2029. The next rate case is the opportunity to challenge the entire structure with actual cost data.
  5. Target the FY2028 Rate Spike: The 23.4% single-year increase ($42.76 → $48.32) for services that don’t exist yet is a clear, simple, outrageous fact for public messaging.

Recall and Electoral Accountability

The vote was 5-4:
  • YES: Whitburn, von Wilpert, Lee, Campbell, Moreno
  • NO: Campillo, Lukas, Foster, Elo-Rivera
“We will remember at election time which officials stood up for the taxpayers and which ones treated us like a piggy bank.” — Roy Nguyen, disabled Navy veteran

11. APPENDIX: DOCUMENT INDEX

PRA 25-6303 (Rehrig Contract/Bid)

File Description
P&C/10090234-25-R- Executed Contract.pdf Allied Waste/Republic Services competitively bid contract
P&C/10090234-25-R- Bid Tabulation.pdf Bid tabulation showing actual competitive pricing

PRA 25-6304 (Rehrig/Fee Core Documents)

File Description
Processed Tally (Trash Fee).pdf Official protest count: 46,132 valid protests
Rehrig_Amendments_1-4.pdf All four Rehrig contract amendments with pricing
Rehrig_Fifth_Admendment.pdf The $64.7M increase to $103.5M
Rehrig_Pacific_Company_WFR.pdf Rehrig workforce report
Rehrig_Cooperative_Procurement_Agreement.pdf The Miami-Dade piggyback contract
Staff_Report_for_-__().pdf Fifth Amendment staff report
R-2026-9.pdf January 2026 amended resolution
CC_3000017867.pdf Purchase order ($38.8M)
Accounting_Table.pdf $12.56M cart procurement allocation
EOC_Program_Evaluation.pdf Rehrig equal opportunity evaluation
item_S401_STAFF_Fifth_Amendment_Rehrig_CC_7-14-25.pptx.pdf Staff presentation for 5th amendment

PRA 25-6773 (Rate Study/Resolutions)

File Description
Exhibit_A_-_May_Rate_Study_Report.pdf Final May rate study (basis for adopted fees)
April_Rate_Study_Report.pdf Earlier April rate study (higher rates)
R-2025-589.pdf Fee adoption resolution (5-4 vote)
R-2025-590.pdf Prop 218 findings (majority protest not achieved)
R-2025-642.pdf Tax roll collection authorization
R-2026-9.pdf January 2026 amended resolution
MS-2025-3.pdf Mayoral docketing memo
Eligibility_Memorandum.pdf Which properties are eligible
Notice_of_Exemption.pdf CEQA exemption filing
San_Diego_Task_8_Operational_Efficiency_Analysis.pdf HDR operational analysis
EOC_Program_Evaluation.pdf Equal opportunity evaluation

PRA 25-6774 (Comprehensive Production)

Council Reports

File Description
25-10_IBA_Review…pdf IBA analysis ($47.59 → options to reduce to $42.72)
Staff Report.pdf HDR consultant award ($4.5M)
Staff Report (1).pdf Fee adoption staff report
Staff Report (2).pdf Tax roll staff report
Staff Report to Environment Committee.pdf Feb 2025 informational briefing
Item_201_STAFF_Adoption…pptx.pdf 53-slide staff presentation to Council
Item_S502_STAFF_Collection…pdf Tax roll collection staff report
Green Sheet – Environment Committee.pdf Committee docketing (info only)
Supplemental_Docketing_Memo.pdf Whitburn’s direct-to-Council memo
Eligibility_Memorandum_-_Updated_June_10_2025.pdf Final eligibility determination
Report_of_Parcels…pdf 4,043-page parcel list ($523.20 each)
Exhibit_A_-_May_Rate_Study_Report.pdf May rate study
April_Rate_Study_Report.pdf April rate study
Exhibit_B1.pdf through Exhibit_B4.pdf Four fee schedule options

Public Correspondence

File Description
Correspondence_-_Item_201_-_4.14.25.pdf Cost-shifting allegations (Giamanco et al.)
Correspondence_(2)_-_Item_201_-_4.14.25.pdf Mark Nelson (Prop 218 violation), Phil Eck, others
Correspondence_(3)_-_Item_201_-_4.14.25.pdf Additional opposition letters
Correspondence_(4)_-_Item_201_-_6.9.25.pdf Retired attorney’s 8-page legal protest
Correspondence_(5)_-_Item_201_-_6.9.25.pdf Clifford Weiler’s 33-page annotated COS study
Correspondence_-_Item_S502_-_6.24.25_Redacted.pdf Weiler’s HSC 5470 challenge
Correspondence_2_-_Item_S502_-_6.24.25.pdf PSAR realtor association letter
Late_Arriving_Materials_-_Item_201_-_6.9.25_Redacted.pdf Roy Nguyen (veteran), Elmore, Lee, others

Internal Communications

File Description
Communications/Batch 2_Jan 2025.pdf Bauer emails to HF&H re: rate manipulation
Communications/Batch 2_Feb 2025.pdf HF&H pushback on accelerated timeline
Communications/Batch 2_Dec 2024.pdf HF&H notes “missing costs and moving costs”
All Batch 2 files (Sep 2024 – Sept 2025) Full internal correspondence timeline
Batch 3_0001D through 0005D Redacted internal deliberations

Spreadsheets

File Description
SDPRA-003982.xlsx HDR engagement budget ($1.698M)
SDPRA-005370.xlsx Rate benchmarking (SD among highest)
SDPRA-005704.xlsx Master cost model (container projections, options matrix)
SDPRA-005829.xlsx Enhancement pricing (high-end shown to public)
SDPRA-006243.xlsx SB 1383 bond debt ($52.97M shifted to ratepayers)
SDPRA-006805.xlsx Fleet vehicle costs ($35.8M)

Public Engagement

File Description
COSS SURVEY 1 Results Summary 4-22-2025.pdf Survey 1 results (84% satisfied)
COSS SURVEY 1 Full comments Only_Redacted.pdf Hundreds of pages of opposition comments
COSS SURVEY 2 Full Comments Only_Redacted.pdf More opposition comments
COSS SURVEY 2 Summary 4-22-2025.pdf Survey 2 results
All Round 1/2/3 Sticky Notes and Comment Cards Raw community meeting feedback

THE BOTTOM LINE

San Diego voters were promised $23-$29/month. They’re paying $42.76 — headed to $50.94. Internal documents show the rate was reverse-engineered from desired fund balances, enhancement prices were inflated for public presentation, and the cost model was still changing while the public was being “engaged.” The City handed a $103.5 million no-bid contract to a single private vendor, charges itself $75 million/year in unverified internal fees, and forced through the fee over 46,132 formal protests by exploiting a Prop 218 process that was structurally designed to suppress opposition. The City’s own consultant documented a department that can’t keep 83% of its trucks running, misses 1,028 pickups per week, and hasn’t rebalanced routes since 2018 — yet residents are being charged first and promised improvements later. This is not a cost-of-service fee. It is a cost-shifting mechanism.
This report was compiled from public records obtained under the California Public Records Act. All citations reference specific documents from PRA responses 25-6303, 25-6304, 25-6773, and 25-6774.