Oakland's trash collector sues city for breach of contract
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Oakland's trash collector sues city for breach of contract
"Waste Management of Alameda County is suing Oakland in Alameda County Superior Court over a complex contractual dispute with millions at stake. Oakland has used Waste Management to collect trash for many years. In 2015, the city inked a deal with the company to collect and process trash and compost from residences and businesses. The City Council selected a different firm, California Waste Solutions, to handle recycling."
"According to the lawsuit, Oakland officials wrongfully tried to assess nearly $24 million in "liquidated damages" against the company. Waste Management also accused the city of applying lower rates on the company, failing to implement a "special assessment program" to collect money from customers who aren't paying for trash service, and generally failing to address illegal dumping. It's unclear how the lawsuit might affect Oakland residents and businesses."
Waste Management of Alameda County filed suit against Oakland alleging breaches of the 2015 residential and commercial trash, compost and processing contract and seeking millions in damages. The company says the city unfairly penalized it for missed waste disposal targets, sought nearly $24 million in "liquidated damages," applied lower rates, failed to implement a "special assessment program" to collect unpaid customer fees, and did not properly address illegal dumping. The dispute echoes claims first raised in 2020 that were tolled while both sides negotiated contract extensions and modifications. City and company officials have not publicly responded and impacts on residents remain unclear.
Read at The Oaklandside
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