Recology, S.F. terminate $112 million rail contract

Facing a legal challenge, Recology, Inc. (San Francisco, CA) and the city of San Francisco, California, have terminated a 10-year, $112 million contract under which the company was to begin shipping waste to Recology’s landfill in Yuba County, California, in 2015. The city’s waste is currently sent to a landfill in Altamont, California, operated by Waste Management Inc. (Houston, TX), which sued the city claiming that the Recology contract was the result of an improper bidding process and failed to undergo adequate environmental review. Recology said that it is working with the city to conduct an environmental review of the project and, once that review is completed, expects to move forward with a new landfill agreement with the city.