The Oakland City Council's recent decision to award a garbage contract to California Waste Solutions instead of Waste Management will cost the City of San Leandro millions of dollars starting next year, according to San Leandro's Finance Director. Waste Management operates a transfer station in San Leandro that pays franchise and business license fees to the City of San Leandro.
Despite the financial losses for San Leandro, San Leandro Vice Mayor Benny Lee went to the Oakland City Council and spoke in favor of the decision that will cost San Leandro millions in revenue. Lee identified himself as the San Leandro Vice Mayor, but did not clarify whether his comments were his own or represented the San Leandro City Council. The lost revenue represents the approximate cost of three police officers. Here is the video from Lee's comments at the Oakland City Council:
As a result of the decision by Oakland to replace Waste Management with California Waste Solutions, the City of San Leandro stands to lose more than half a million dollars in annual revenue from franchise and business license fees, according to San Leandro Finance Director David Baum. Waste Management's Davis Street Transfer Station in San Leandro handles much of Oakland's garbage and Waste Management pays San Leandro based on the weight of the garbage that is processed at the facility.
In addition to the loss of annual revenue, the City of San Leandro stands to lose an estimated $1.3 million in permit fees from an expansion project that will no longer be necessary.
In his comments to the Oakland City Council in support of California Waste Solutions, Benny Lee identified himself as the Vice Mayor of San Leandro and noted that he sent an email to the Oakland City Clerk earlier in the day.
Between 1994 and 1998, California Waste Solutions owner David Duong and his family contributed more than $25,000 to members of the Oakland City Council. Oakland Councilmember Larry Reid is the godfather to three of Duong's children.
California Waste Solutions appears to be making similar inroads in San Leandro. Andy Duong, a director at California Waste Solutions, hosted a fundraiser for San Leandro Mayoral candidate Diana Souza. A picture from the event shows Duong and Souza.
Other recent campaign finance disclosures for Lee and Souza showed no financial contributions from Duong or California Waste Solutions. Lee's next disclosure is due next year, while Souza's next disclosure is due on October 6, 2014.
Other news coverage of Oakland's decision to award its garbage contract to California Waste Solutions: