Years after the city first sued its recycling contractor on behalf of Oakland landlords, California Waste Solutions will begin providing refunds and lower rates to property owners.
Oakland filed a lawsuit against CWS in 2017, alleging that the contractor was overcharging landlords of multi-unit buildings for its premium backyard service, where workers bring the recycling bins to the curb. CWS’ contract with Oakland prohibited fees as high as were being charged, the city claimed.
A settlement was reached in 2021, with CWS agreeing to refund landlords for a total of more than $6 million—and to significantly reduce their monthly service rate going forward, from about $188 to around $34 per cart, according to the city. But three years later, property owners have yet to receive any payment.
After spending time hashing out how to handle those refunds, Oakland and CWS have implemented a process, the city announced this week.
“Securing these refunds and the rate reduction is a win for small business owners and landlords of multi-family housing units in Oakland,” said City Attorney Barbara Parker in a press release. “Many of these property owners operate on a tight margin; this settlement will enable them to reduce costs and, more importantly, recoup unfair charges they were previously required to pay.”
Owners of 1,340 properties deemed eligible for refunds will receive notices and instructions for filing a claim, which can be done online, the city said. Other landlords who believe they are eligible for reimbursement can contact the claims administrator.
CWS did not respond to a request for comment. A message on the settlement website says, “Although CWS does not admit to the allegations, CWS chose to settle this case without admitting liability.”
Meanwhile, a related case brought by landlords against the city is scheduled for trial in the fall after the state Supreme Court declined the city’s request to dismiss that lawsuit. The case centers on the “franchise fees” that waste collectors pay the city in order to do business in Oakland—a fee that landlords argue is unjustly passed down to them in the form of service rates, which are higher for rental property owners than for other homeowners. The lawsuit argues that Oakland’s franchise fees are an illegal tax, which the city disputes.
“While I’m sure the property owners who will receive rebates…do appreciate that, if and when the money is actually received by them, they have been extremely disheartened by the fight they have had to endure in pursuing their own right to reimbursement directly from the city,” said Scott Freedman, a lawyer for the landlords, in an email.
The city’s waste collection contracts have been split since 2014 between Waste Management, which handles trash and compost pickup, and CWS, which does recycling.
Landlords are permitted to pass some of the fees they pay for waste collection onto tenants.
