Dive Brief:
- Oakland, CA is considering a new trash contract with a $30 million franchise fee.
- Although the fee goes to the city, Oakland city councilman Noel Gallo calls the fee a "hidden tax" for residents and laments that the contract will potentially raise fees by 50% for residents.
- Oakland currently has two bids for the contract: the current contractor, Waste Management, and California Waste Solutions.
Dive Insight:
As franchise fees are a standard practice across the country, and most contracts carry a franchise fee, the fee will probably stay in place no matter who gets the contract, reports SF Gate.