San Jose passes trash for cash: $48 million lawsuit

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San Jose passes trash for cash: $48 million lawsuit
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California Waste Solutions claims San Jose’s refusal to educate residents about recycling has shifted costs onto the company.

A San Jose recycling company is suing the city claiming it profits by failing to prevent residents from throwing garbage into their recycling bins.

“The City forced CWS to collect, process and dispose of massive amounts of garbage in the recycling containers,” the lawsuit said. “The City claimed CWS was exaggerating the problem until it conducted its own study confirming as much as 58% of the recycling containers were garbage and other non-recyclable material.”

According to the suit against San Jose filed by CWS on Jan. 6, the company provided recycling services to about a third of San Jose’s residents under a 2010 contract. A purported copy of the contract filed as a court exhibit says the recycling firm would “partner with” the city’s environmental services department to “develop education programs” to prevent residents from contaminating recyclables with trash.

The firm had to pay more than $6 million in extra landfilling costs, and the “many tens of thousands of tons” of trash it had to pick up from recycling containers added another $14 million in expenses, the letter claimed. Increased processing costs for dealing with the contamination amounted to more than $10 million, the letter alleged.

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