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Error in Recycling Contract Could Increase Fees for Oakland, Calif., Residents

“A mere draftsman’s error” in a contract between the City of Oakland and California Waste Solutions could cost residents tens of millions of dollars over the course of the 10-year agreement.

In 2014, the City of Oakland, Calif., awarded California Waste Solutions a new $1 billion contract over Waste Management, a hauler that provided garbage services to Oakland for more than 100 years.

Shortly after that, Waste Management filed a lawsuit, alleging that the Oakland City Council “appeared heavily swayed by long-term personal and political connections” in voting to award the contract to California Waste Solutions. Waste Management ended up winning back the city’s trash services, while California Waste Solutions kept the city’s recycling services.

A year later, the City of Oakland quietly put forward a new proposal to increase the recycling rates for all residents beyond the fees that officials negotiated and approved in 2014. This move sparked an outcry from residents who were upset about the massive spike in recycling rates.

Now, “a mere draftsman’s error” in a contract between the City of Oakland and California Waste Solutions could cost residents tens of millions of dollars over the course of the 10-year agreement.

SFGATE has more:

A “mere draftsman’s error” in a contract between Oakland and the company that collects the recycling of its residents could cost apartment dwellers there tens of millions of dollars over the course of the 10-year agreement, the city alleges in a lawsuit.

One missing line in the contract with California Waste Solutions allows the company to take advantage of a loophole in potentially charging up to $776.13 per month to move plastic recycling bins the size of a trash can to the curb and back for apartment residents, the March 20 lawsuit filed in Alameda County Superior Court says.

Read the full story here.

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