Reforming Unfair Contracts

“As a city, we need make sure public dollars are delivering real results for our neighbors. Private vendors that provide public services must be accountable to the people of Providence. That means amending or even ending bad agreements, like our red light and speeding camera contracts, where companies collect our private data and keep a large share of the ticket revenue generated. It also means holding major service providers like Waste Management accountable to their obligations while ensuring the city gets the best value possible for taxpayers.”
— David Morales

  • In 2024, the City of Providence collected $3.7 million in red light camera fines, yet more than $1 million of that revenue went directly to the private vendor operating the system. A quarter of revenue generated from red light camera citations should not be going to a private vendor. The same issue exists with speeding cameras near some of our public schools. In fact, Providence’s contract is actually more expensive in comparison to cities like East Providence and Pawtucket. Our vendor, the New Jersey based company, Conduent, charges Providence a fixed fee of $2,978 per camera every month and takes $7.85 from every $50 violation issued. That means Providence is paying nearly $500 more per camera each month than our neighboring cities.

    These are exactly the kind of contracts that leave our neighbors shortchanged. While private contractors collect millions, Providence is leaving critical funding on the table. Funds that should be used for infrastructure repairs and traffic calming investments, from pothole repairs to the installation of raised crosswalks that make our streets safer.

    As Mayor, David’s administration will work with the Board of Contract & Supply and consult with the City Council’s Finance Committee to properly review vendor proposals and negotiate fair agreements. For red light and speeding cameras, David will pursue agreements that ensure Providence keeps at least 90% of the revenue generated, while also implementing strong policies to protect the privacy of our neighbors when images of their vehicles are captured.

  • Our city deserves reliable trash collection that respects our neighborhoods. As Mayor, David’s administration will amend the city’s existing agreement with Waste Management to better meet the needs of our neighbors.

    David will set clear service standards and enforce them. Collection hours will respect neighborhoods so trucks are not operating early in the morning or late at night. Waste Management will be required to provide in-state customer service so neighbors can quickly reach someone who understands our city and resolve issues without long delays. This will be an improvement from today’s status quo of calling into a regional call center with long wait times. If a Waste Management truck damages a household’s trash or recycling bin, the company will be responsible for replacing it at no cost to the resident. And when regular pickups are missed, Waste Management must respond with urgency and complete the collection within a clearly defined timeframe. If they fail to do so, the city will hold them accountable through a built-in citation and penalty system written directly into the contract.

    Our waste contract will prioritize service, accountability, and quality of life for our neighbors, not the bottom line of a private contractor.

  • Property taxes are the single largest source of revenue for our city. However, nearly 40% of property in our city is tax-exempt, which significantly limits the funding we have to support public services, such as education and infrastructure repairs. To close this gap, Providence has had to rely on Payments in Lieu of Taxes (PILOT) agreements with large tax-exempt institutions such as RISD, Providence College, Johnson & Wales, and Brown University.

    Despite their vast wealth and extensive property holdings, private colleges and universities in Providence only pay 8% of what they would otherwise owe in property taxes under the current PILOT agreement, a deal that Mayor Smiley negotiated behind closed doors.

    As Mayor, David will partner with the Providence City Council and university leaders to negotiate a new PILOT agreement that requires private colleges and universities that call Providence home to make a more equitable contribution to our city.

    Providence does not have to start from scratch. In New Haven, the city reached a landmark agreement with Yale University in 2021 that substantially increased the university’s voluntary payments. That deal brought Yale’s total commitment to approximately $135 million (about 20% of what Yale would otherwise owe in property taxes).

    These future PILOT negotiations will not be conducted behind closed doors. David’s administration will ensure the process is transparent and open to the public by involving neighbors, educators, and students into the process.

    Once Providence secures a stronger agreement with our private universities, additional revenue will be invested directly into our public schools. Our administration would prioritize hiring and retaining the frontline staff that our students need so every school is supported by multilingual educators, social workers, psychologists, counselors, and librarians.