Community Corner

UPDATED: Judge Allows Lawsuit Challenging Los Alamitos' $24.5 Million Trash Contract

A Superior Court judge moved Friday to allow a citizens lawsuit alleging that the city violated its own codes in awarding the trash-hauling contract.

A lawsuit alleging Los Alamitos officials violated city code when it awarded its $24.5 million trash-hauling contract will be allowed to move forward, an Orange County Superior Court Judge ruled today.

The plaintiffs, a group of residents calling themselves Citizens for a Fair Trash Contract hailed the ruling as a victory and a vindication.

“Today was a massive victory,” said JM Ivler, a Los Alamitos resident and plaintiff along with former City Councilman Art DeBolt. “The judge said we have provided enough cause for it to go forward.”

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“The judge didn’t rule in anyone’s favor. He removed all causes of action,” said City Manager Jeff Stewart. “We are looking forward to presenting our case for the procedural part in September.”

Originally filed during last year’s contentious City Council race, critics of the suit called it a political stunt aimed at undermining the campaigns of the council incumbents who voted for the city’s trash contract with Consolidated Disposal Service. The suit accused city leaders of corruption in accepting thousands of dollars in campaign donations from the trash hauler and its officers and then bypassing city procedures to award the contract to Consolidated Disposal Service.

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Last month Orange County Superior Court Judge Andrew Banks threw out the case against City Council members Council Members Troy Edgar, Marilynn Poe and Mayor Kenneth Stephens, finding no evidence that the city officials were influenced by the campaign donations. Today, the judge could have again ruled in favor of the city by throwing out the remaining claim that the city violated its own policies designed to ensure contracts are awarded fairly, but he didn’t.

“It means we’re going to trial,” Ivler said. “The plaintiffs won. The city lost.”

“We’re very pleased with what the judge did today,” added DeBolt.

While the court allowed the case to move forward, the judge approved a demurrer filed by the city, finding that the plaintiffs have not demonstrated that they are the injured parties in the matter.

Edgar has repeatedly defended the trash contract with Consolidated, calling it one of the best in Orange County with rates under $12 per month for residents.

The contract adds $275,000 in revenue to the city coffers and a nearly $300,000 one-time payment, according to city officials. The city also claims that the new contract resulted in a 19% reduction in residential collection rates. Also as part of the agreement, the trash hauler will provide street-sweeping services at no additional cost to the city.

In the claim against the city, Citizens for a Fair Trash Contract contend that city officials contorted the city’s contracting procedure in order to award the contract to Consolidated Disposal Service even though the company’s bid was more than $6 million more than another qualified bidder.

The two sides will be back in court on September 16.


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