The Sparks city council voted unanimously Monday to adopt a “garbage only” franchise agreement with Waste Management, with certain provisions that reign in the franchisee’s ability to raise residential garbage rates.

Because the agreement passed by the city council is not an option that Waste Management had negotiated previously with city staff, they have the right and ability to cease garbage collection in the city of Sparks, according to city attorney Chet Adams.

However, spokespeople for Waste Management have said that garbage collection will continue in a good faith agreement with the city.

“Garbage collection will remain the same until we get this all worked out and decide what option we will be going with,” said Justin Caporusso, Waste Management spokesman for the western region.

Waste Management will now be examining the feasibility of the proposal within their own rate structure and will continue negotiations with the city, Caporusso said.

The modified agreement approved by the city council allows for a one-time only residential rate increase of 8 1/2 percent, which equals about $1.20 per month. The modified agreement also states that after seven years, residents’ garbage can rentals would fall off their bill.

“After seven years they have already paid for it,” said Councilman Ron Smith, who suggested the amendment to the proposal.

Consumers will not see any changes until negotiations have ceased.

The rate increase is the result of Waste Management representatives stating that they would have to raise residential rates by 38 percent, or $5.41 per month, if they lost the assurance that they would be entitled to certain portions of the trash market.

"There is a whole system that we put numbers into when we figure out what our rates need to be," Caporusso said in a previous interview. "It is very technical and complicated. They calculate everything in that you can possibly think of."

Waste Management currently serves 1,600 commercial and 162 industrial customers in the city of Sparks. According to Caporusso, they estimate that number will shrink to 500 commercial and 42 industrial customers if the franchise did not regulate all solid waste. As a result of the lost business they would have to raise their rates, Caporusso said.

According to Councilman Smith, the smaller rate increase would offset the business that Waste Management had already lost due to competition from third-party trash haulers.

“I do not believe that Waste Management will lose all those customers,” Smith said.

As it was presented to council, without Smith’s amendments, the franchise agreement would regulate only garbage. According to Waste Management representatives, garbage is defined as anything that will decompose: restaurant waste, banana peels, etc.

This would leave the market open to waste haulers who want to pick up trash. Trash is dry waste that usually comes from a construction site or an office building that doesn’t have a cafeteria.

Staff reports state that “under this scope of the franchise, generators of material other than ‘garbage’ would be able to shop the market … the franchisee (Waste Management) would also be able to compete for this business free of any rate controls put in place for garbage under this agreement.”

The scope of this agreement matches those used by Washoe County and the City of Reno.

“What transpired today was basically a counter offer,” city spokesman Adam Mayberry said, speaking of the 8 1/2 percent increase versus the 38 percent increase suggested by Waste Management.

Third-party haulers who attended the meeting were pleased with the council’s decision.

“The Sparks city council was very bold and brave in creating a win-win situation,” said Tim Crowley, business council for Cast Away, a third-party trash hauler. “Our customers have the ability to continue business just as they did before.”