Long Beach City Council Pauses $35 Million Recycling Contract, City Auditor's Investigation of RFP Process

Long Beach Post

A multi-million dollar recycling contract that was poised to be re-awarded to Waste Management of Long Beach was put on hold last night, after the Long Beach City Council voted unanimously to table the issue, while simultaneously opting to delay an initiative that would involve the city auditor’s services to explore if there were any discrepancies in the request for proposal process.

The contract in question is for 10 years and would pay Waste Management a base payment of $3.5 million annually, with an additional rate tied to the consumer price index (CPI) that could reach upward of four percent for every year of the contract. In total, the contract is estimated to reach the neighborhood of $40 million once the contract reaches maturity.

Waste Management currently services about 118,000 active accounts in the city, and the sale of over 27,500 tons of residential recycling during the 2015 fiscal year amounted to about $605,900 in revenue for the city.

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