COUNCIL AGENDA: 6/23/26 ITEM: 2.12(a)
T-42879/2319739_2 Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL FROM: SUSANA ALCALA WOOD, City Attorney SUBJECT: CALIFORNIA WASTE SOLUTIONS, INC. v. CITY OF SAN JOSE SETTLEMENT DATE: June 3, 2026 RECOMMENDATION Approve a settlement in the case of California Waste Solutions, Inc. v. City of San Jose, et. al., U.S. Dist. Ct., N.D. Cal., Case No. 23-cv-01647-MMC and authorize the City Attorney to execute a Settlement Agreement with California , providing start-up costs in the amount of $1,000,000.00 to add a curbside battery collection service to the current recycling service for single-family homes serviced by CWS, as well as monthly compensation per household per month, as set forth in the proposed amendment. OUTCOME The City of San José ( will pay $1,000,000.00 to CWS to fund start-up costs to add a curbside battery collection service to single-family homes serviced by CWS, pursuant to an amendment to contract with the City. The contract amendment will resolve the lawsuit with a settlement agreement providing mutual releases. The parties will bear their own litigation costs and A condition of the settlement includes a requirement that residential recycling contractor, Waste Connections of California, Inc. dba GreenTeam of San service to the single-family homes it services with an agreed upon payment for start-up costs and monthly compensation per household per month, as set forth in the proposed amendment. BACKGROUND This lawsuit arises from claims made by CWS alleging Breach of Contract, Breach of the Implied Covenant of Good Faith and Fair Dealing, and violations of 42 U.S.C Sec. 1981, the Equal Protection Clause and Business and Professions Code Sec. 17200, et seq. stemming from the previous agreement between the parties for recycling services to single-family homes. CWS alleged the City unfairly and HONORABLE MAYOR AND CITY COUNCIL June 3, 2026Subject: Settlement of Green v. City of San José Page 2
unlawfully required it to collect and process contaminated recycling bins, which increased its operational costs. CWS sought compensatory damages of $34 million and restitution and disgorgement of $14.4 million, or such other amounts proved at trial, prejudgment interest, and costs of suit. The City denied all allegations and filed a Motion for Partial Summary Judgment, successfully obtaining summary judgment on the 42 U.S.C Sec. 1981 and the Equal Protection Clause claims. ANALYSIS The parties have agreed, subject to Council approval, to add curbside battery collection service to the current recycling service for single-family homes serviced by CWS, for which CWS will be compensated in accordance with the amendment to the current recycling services agreement to be executed by the parties. The amendment will provide for an additional service to the residents at a lump sum start-up cost of $1,000,000.00, as well as monthly compensation to CWS based on weekly single-family home participation rates. A condition of the settlement includes a requirement that GreenTeam also agree to provide the same curbside battery collection service to the single-family homes it services with an agreed upon payment for start-up costs and monthly compensation per household per month, as set forth in the proposed amendment. The settlement will fully resolve the lawsuit, eliminating the risks inherent in continuing the litigation. The Environmental Services Department/Integrated Waste Management will seek Council authority to negotiate and execute the above-mentioned amendment with CWS and GreenTeam at the same Council meeting of June 23, 2026. PUBLIC OUTREACH/INTEREST website for the June 23, 2026 open session agenda. BUDGET REFERENCE The table below identifies the fund and appropriations to fund the curbside SFD battery collection service, startup costs, and outreach.
HONORABLE MAYOR AND CITY COUNCIL June 3, 2026Subject: Settlement of Green v. City of San José Page 3
Fund # Appn. # Appropriation Name Total Appropriation Amount for Contract 2026-2027 Proposed Operating Budget Page* Last Budget Action (Date, Ord. No.) 423 0763 Single-Family Recycle Plus $99,920,559 $3,290,000 914 N/A *The 2026-2027 Proposed Operating Budget was approved on June 9, 2026 and adopted on June 16, 2026 by the City Council. COORDINATION CEQA Not a Project; File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment. By___________________________ SUSANA ALCALA WOOD City Attorney cc: Jennifer Maguire, City Manager For questions, please contact SUSANA ALCALA WOOD, City Attorney, at (408) 535-1900.