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The San Francisco City Attorney's Office has reached a settlement with Recology, collectively valued at $107.6 million, stemming from inaccurate rate increases disclosed during an ongoing public corruption investigation as well as unfair competition practices. This news comes as competitors and critics have already been looking for ways to potentially chip away at the company's exclusive lock on the local market.
The deal, announced Thursday, comes after Recology's former government and community relations manager for the area, Paul Giusti, was charged in federal court for allegedly trying to influence a former city official via bribes and other actions. That official helped approve a more than 14% rate increase for the company in 2017. According to the new settlement, Recology used inaccurate calculations to justify that increase and no corrective action was taken by either party once it was discovered.