Wednesday, October 19, 2016
[Alameda County] Town Business: Oakland Claims Garbage Contracts No Problem
Several years ago Oakland negotiated its biggest, most expensive city contracts. They were for garbage, food waste, and recycling collection and disposal. No sooner did the city sign the contracts than rates shot up for landlords and businesses. The city was widely criticized for locking in expensive, long-term franchises.
The Alameda County Grand Jury conducted an investigation of the city's waste contracts this year and found that Oakland failed to create a competitive bidding environment, did not perform necessary financial analyses to understand how the contracts would harm ratepayers, and rigged the contract competition to favor the incumbent companies, Waste Management and California Waste Solutions. The Grand Jury also found that Oakland improperly engaged in closed-door negotiations with the two companies that ultimately won the contracts, and that all this resulted in Oakland residents and businesses paying higher collection rates and a higher franchise fee than surrounding communities.
So how did the city respond to the Grand Jury report?
Oakland's Department of Public Works claims in their official response to the Grand Jury that they in fact solicited competitive bids, and that the big rate and franchise increases were publicly discussed on multiple occasions, and furthermore that the new rates and fees are higher than other places only because they're new. To sum up Oakland's response, everything is cool, more or less.
October 17, 2016
East Bay Express
By Darwin BondGraham