The Oakland City Council's decision in December 2021 to settle a lawsuit with California Waste Solutions (CWS) for $1. 7 million has come under scrutiny, particularly as it could have settled for much less. City Attorney Barbara Parker initially proposed a cash payout of only $200,000, but an amendment by Councilmember Rebecca Kaplan led to a much larger settlement. The lawsuit alleged that CWS had overcharged property owners by $6 million for a premium service, and while Oakland reclaimed this amount for its residents, the settlement with CWS raised eyebrows. Compounding the situation, CWS has been subject to a federal investigation, with the FBI recently raiding its headquarters and the homes of its owners, including Oakland Mayor Sheng Thao.

The council's decision to agree to a larger payout has left many questioning whether they acted in the best interests of Oakland's ratepayers. The settlement has been described as a "good-faith gesture," but the ongoing investigation adds a layer of complexity to the narrative. As further developments occur, the ramifications for both the city and CWS remain to be seen. This case highlights the challenges cities face in managing relationships with contractors amid allegations of misconduct.