Monday, June 30, 2014

Oakland’s Garbage Mess: Just When You Thought It Was Safe!

Like the movie Jaws, Recology just doesn't seem to go away. A City Hall source says Recology's lobbyists are working hard to get into the already jumbled bidding for this $1.2 billion 20-year contract. Remember, on May 29 the City Council rejected staff's recommendation to retain Waste Management as Oakland’s primary garbage handler (along with a 50% rate increase!).

Recology unceremoniously withdrew from the bidding process last year when Minna Tao told the June 18 2013 City Council meeting, she was "dismayed" at the process and that the city's contract conditions made it "non-conducive" to bid. City Council President Pat Kernighan then called for changing the contract terms to 20 years and to allow Recology to rebid for the contract.

The council reacted negatively to Waste Management’s proposal, especially after spending nearly $1 million on consultants to bring in multiple bidders who never materialized. One can speculate that Council members are encouraging the likes of Recology to jump back into the mix. What's wrong with this?

Recology’s Minna Tao is the same person who, in a letter to the city’s Garrett Fitzgerald, encouraged Oakland to use public financing to build a local waste facility for it to manage. The fact that this multi-million dollar company, with a monopoly over San Francisco’s trash contract since 1932, is asking is insulting in itself. But floating this idea knowing Oakland’s dire financial situation is worse!

Recology must certainly smell blood, as the 'best and final offers' staff was directed to get from Waste Management and California Waste Solutions are likely not going to satisfy city council, particularly during an election year!

Don’t be surprised if council delays the garbage contract matter until after the November elections given that rates will inevitably be going up no matter who the city chooses.


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