The committee heard the results of a consultants' report that found a rates-funded system would work out cheaper for most residents (but not all), create more jobs, and divert more waste from landfills than a market-led system.
The report said a waste audit earlier this year found 70 per cent of what people sent to landfill could have been recycled or composted.
Committee chairman Steve Morris supported the proposed move, saying the council would be letting down the country and its citizens if it continued with the status quo.
"It would be like kicking the can down the road for a few more years ... [a future council] will look back and say 'What a bunch of wallies they were back in 2017'."
He dismissed arguments it would reduce market competition, saying companies would still have to tender for a council contract.
Mayor Greg Brownless spoke against the proposal - saying it would discourage personal responsibility - but voted to take it forward.
He was not convinced it would get more people recycling and worried it would result in profits going offshore.
Rick Curach voted against the proposal, saying the current "sophisticated" system offered residents choices to make an arrangement that worked for them - and he had not heard any complaints.
"I thought we're going to go to the private sector and say 'This is the outcome we want to achieve, how would you do it?'."
That impression was shared by representatives from three waste management companies spoken to by the Bay of Plenty Times.
John Cruickshank of Kleana Bins, Mark Grieve of Greenfingers and Robin Horne of Bin Boys were among company representatives who attended the meeting. The trio was not happy with the committee's decision and said they had not been adequately consulted.
They believed the report did not tell the full story and that switching to a council-run system would have no or negative impact on how much waste was diverted from landfill.
Mr Cruickshank, who started Kleana Bins 17 years ago servicing Tauranga and the Western Bay, said the current system incentivised people to recycle and compost because they could see the savings.
He had 21 staff and believed he would have to let go 14 if he lost his Tauranga customers.
Marty Hoffard, zero waste advocate and director of Tauranga company Waste Watchers, said he used to defend user-pays systems but had lost faith in the private sector's ability to manage it.
"Privatisation hasn't worked. It hasn't done what it intended to do, which was get people thinking about every bag or bin they put out on the kerb. After 20 years it hasn't delivered."
He said the council's decision was a bold move and he congratulated them.
Bellevue environmentalist Ann Graeme said it was an excellent decision.
"I think that it is a very significant step forward."
How they voted
For: Bill Grainger, Kelvin Clout, Greg Brownless, Terry Molloy, Max Mason, Steve Morris
Against: Rick Curach, Catherine Stewart
What happens next
- December: Committee recommendation goes to full council.
- Late 2017: If full council approves, the proposal will be added to the draft Long Term Plan 2018-28.
- Early 2018: Draft plan goes out for public consultation.
- 2020-21: If approved, new three-bin (rubbish, recycling, greenwaste) system introduced.
- 2022-23: Expanded to four-bin system (rubbish, recycling, food waste, garden waste).
