Wednesday, March 11, 2015

[Alameda County] Citywise: Grand jury reviewing Oakland garbage contract


Oakland's handling of a billion-dollar garbage and recycling contract last year that spawned an aborted lawsuit and ballot petition drive is under review by the Alameda County grand jury, sources have confirmed.
The City Council originally spurned the recommendations of its own staffers and handed the entire contract to California Waste Solutions, a politically well-connected homegrown company that didn't have the necessary facilities in place to immediately handle the work.
In response to the council's action, Oakland's longtime garbage company, Waste Management, sued the city claiming that council members had "derailed" its process for picking a garbage company. The suit claimed that the city acted unlawfully by rejecting Waste Management's offer and allowing California Waste Solutions a second chance to bid after showing exactly how Waste Management had priced its services.
Waste Management started a petition drive to overturn the contract, but the company gave up that effort after reaching an agreement with the city to keep collecting curbside garbage. Under the agreement, California Waste Solutions was awarded the city's recycling business.
For all the drama, the council did appear to succeed in driving a better price for residents. Waste Management's original offer to split the contract with California Waste Solutions would have increased rates 66 percent to $48.72 per month. Before the council's final vote last year, Waste Management dropped that price to $37.53.
The grand jury typically releases a report of its investigations in June. News of the investigation was first reported on the East Bay Citizen website.
February 27, 2015
Contra Costa Times
By Matthew Artz, Chris De Benedetti, and Rebecca Parr, Bay Area News Group

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