Audit: Calif. City Overpaid for Equipment Rentals, Street Sweeping

An audit found that the City of Industry, Calif., overpaid for its outsourced street sweeping services and equipment rentals provided by a company owned by a former mayor and his family.

by Staff

April 27, 2015

1 min to read

An external audit found that the City of Industry, Calif., overpaid for its outsourced street sweeping services and equipment rentals provided by a company owned by a former mayor and his family, the San Gabriel Valley Tribune reported.

Zerep Management Corporation charged the city to rent equipment it already owns and billed so much for vehicle and equipment rentals that the city “could have purchased and owned a fleet of the same or similar vehicles and equipment several times over,” according to audit documents obtained by the newspaper.

Former Mayor Dave Perez stepped down in 2012. The city is also reviewing its trash collection contract with Perez family’s company.

Read the full article here.

Topics:Contract Management Independent Contractors Outsourcing Equipment Rental Street Sweepers Operations

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