Wednesday, October 1, 2014

What Happens When Waste Management Loses a Billion Dollar Contract?

Do you live in an area where the city government decides what hauler you must use for waste, recycling, or organic waste disposal? Have you ever been curious about how your city chooses the hauler you are required to use, or dissatisfied with their decision?

On Monday, August 18, 2014, Waste Management filed a lawsuit against the City of Oakland, CA, where they formerly held a ten year agreement to collect all of the citys residential waste and recyclables. Waste Management (WM) sued the city because they lost the 1 billion dollar contract to a local company, California Waste Solutions, who WMs legal team claims lack the infrastructure and stability to service the City of Oakland. However, Rebecca Kaplan, Councilwoman for the City of Oakland, said she and her associates on the city council voted 7-1 in favor of California Waste Solutions because they offered residents the best deal. California Waste Solutions offered to charge residents nearly $7.00 less than what WM offered in their proposal, which would collectively save residents over $200 Million, said Kaplan. Waste Management's proposal would have almost doubled the residents of Oakland were formerly paying for service.


GlobalTrash Solutions (GTS) is no stranger to the controversy surrounding city hauling agreements (AKA "franchise agreements.) As consultants, we help our clients to navigate the sometimes murky waters of franchise agreements, and make sure haulers are playing by the rules. We pride ourselves on overriding franchise agreements on a number of occasions for reasons we cannot disclose to the public. However, we see these long term agreements as a challenge and an opportunity for our clients to save money in an area where they may have felt that their "hands were tied." 

GTS is not a waste hauler, but we hold haulers accountable by auditing our client's expenses and processes to ensure they are getting the most efficient and economical trash service. To learn more about our program, please call us at (866) 760-8194.          

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