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City Flushes Down Millions on Wastewater

Photo by cravethemind via LAist Featured Photos on Flickr
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City Controller Wendy Greuel is expected to release her second audit since entering office last July later today. According to her office, a wastewater disposal contractor took advantage of the city's lack of oversight and a poorly written contract to overbill and overcharge. Apparently, Express Environmental Corporation, contracted to collect and dispose of wastewater, overbilled the city by 75 percent, costing more than $1 million. And a poorly negotiated contract also cost city coffers $6.2 million after auditors found that the city was being charged up to $1.35 a gallon for wastewater to be removed while another local government agency is only paying $.33 a gallon.

More details will come after an 11 a.m. press conference.