City garbage is currently picked up by BLT Enterprises and hauled to a landfill in Sparks, Nevada.
BLT wants to sell its contract with the city to one of the country's largest garbage companies - Waste Management. The City Council's approval is needed.
"I think that's a terrible idea. This contract is horribly burdensome on Sacramento ratepayers."
Craig Powell is with Eye on Sacramento. The citizen's group has filed a complaint with the Sacramento County Grand Jury. It alleges BLT overcharged ratepayers and secretly negotiated a deal with Waste Management to sell its city contract.
Sacramento Mayor Kevin Johnson admits there are questions.
"I don't think that we as a city for whatever the reason (have done) our proper due diligence, which is what has created some of this uncertainty."
But City Manager John Shirey is advising council members to approve the deal.
He says BLT has agreed to pay the city $2.1 million, which will be used to offset future residential rate increases.
Shirey also says Waste Management will dump solid waste locally at the Kiefer Landfill instead of trucking it off to Nevada…helping to reduce the city's carbon footprint and creating local jobs.