UPDATE: In a unanimous vote Tuesday night, the Long Beach, CA City Council awarded a 10-year deal to Waste Management for the collection of recyclables.
- After complaints from some city officials that Long Beach, CA's process for awarding a 10-year recycling contract was flawed, an outside review by financial advisory firm the PFM Group has found no major issues.
- The report recommended awarding the contract - potentially worth up to $42 million - to either Waste Management or EDCO Waste & Recycling Services over Republic or Athens Services.
- The Long Beach City Council will discuss the report and potentially award the contract at its Tuesday meeting.
This debate has dragged on throughout the spring. While staffers from the city's Public Works Department recommended awarding the contract to Waste Management, other city officials raised concerns about the company having an unfair advantage.
Republic Services also filed a complaint against the process, saying staffers didn't understand their projected costs.
Waste Management has been contracted for recycling collection since 1992 and has more data on the local market. While the PFM report found that Waste Management had "natural advantages," it was still identified as one of the city's best options. Despite "irregularities" identified with communication and information request procedures, PFM said "the issues did not unduly hinder the proposal or evaluation process."
If the City Council decides to award the contract to Waste Management the company will receive $3.5 million for the first year with payment for future years tied to inflation. The Council could also decide to award a temporary six-month contract and take time to further explore its options. Long Beach's recycling program has seen a lot of success since it began in 1990.