Dive Brief:
- Waste Management has decided to move forward with legal action against the city of Oakland, CA.
- Waste Management claims that Oakland illegally granted a 10-year, $1 billion contract to a local trash hauler, California Waste Solutions. The suit alleges that the company had never held a waste contract in the US, submitted proposals past the deadline, and didn’t follow the city’s contracting rules.
- Waste Management also says that the city provided the local firm with confidential information about Waste Management’s bid. The lawsuit requests the court to overturn the decision and award the contract to Waste Management.
Dive Insight:
California Waste Solutions' contract with Oakland was approved on a 7-1 vote and takes effect in July 2015. Members of the City Council maintain that the local hauler was chosen because the company gave the best deal to the community.
Attornerys for Waste Management see things a bit differently. "The council violated the public trust and put the citizens of Oakland at risk by not following the procurement process," said company lawyer John Lynn Smith.