Santa Rosa, Calif.-based Ratto Group announced that it will sell off its refuse operations to San Francisco-based Recology. North Bay Corp., which is owned by Ratto, handles waste collection services for most of Sonoma County, including Santa Rosa.

This news comes less than a year after an audit from the City of Santa Rosa concluded that North Bay Corp. failed to replace vehicles according to contract requirements, had lower recycling numbers than reported, and failed to properly replace trash cans. 

After the audit, the city decided not to renew the company's contract, which was up for a five-year extension. Now, five vendors now hope to earn Santa Rosa's contract, including Recology, Waste Management, Waste Connections, and two local waste contractors, reports the Press Democrat. The city plans to choose the winning bid by June, when North Bay Corp.'s contract ends.

Recology's CEO told the Press Democrat North Bay Corp. customers should expect higher rates than the Ratto Group charged, as the company will need to replace all of its trucks and trash cans and wages are expected to increase.

Two months ago, the Ratto Group deployed its first turbine-electric hybrid trash truck.