Critics of the deal allege BLT overcharged ratepayers and secretly negotiated a deal with Waste Management to sell its city contract.
The group Eye On Sacramento has filed a complaint with the Sacramento County Grand Jury. Craig Powell with the group urged council members to reject the deal.
"We think this is premature. We have every reason to believe the Grand Jury's going to take up an investigation. You'll have the benefit of their report."
But City Councilman Steve Cohn said the deal should go forward.
"There's some legitimate concerns that have been raised but let's face it those concerns go to the existing contract. So if we were to refuse to consent to the assignment, we'd be back with BLT in the same contract."
The council voted 8-1 to support transferring the contract from BLT to Waste Management. BLT has agreed to pay the city $2 million, which will be used to offset future residential rate increases.
Waste Management will also dump solid waste locally at the Kiefer Landfill instead of trucking it off to Nevada…which is what BLT was doing.