Trash Monopoly - How Can Landlords Help?
Written by Peter Strauss of Iconic Investments
Yet another brilliant move by the Los Angeles City Council! This one affects commercial buildings, businesses and apartment buildings.
Back in March, we discussed how the City of Los Angeles passed “Zero Waste LA” on Jan. 9th, 2017. This private/public partnership between the City of Los Angeles and private trash companies created 11 franchise zones controlled by seven companies. The intention was to improve air quality, decrease pollution and reduce landfills, while keeping customer pricing the same.
Fast-forward 11 months . . .
- Pricing increases from 100% to 600%
- Decline in quality of customer service
- Trash not being collected as scheduled
- Move trash bin 100-plus feet -- $25 (per collection)
- Unlocking and locking secured access buildings -- $10 (per collection)
- Blocked Access (requiring return or delay) -- $50 (per occurrence)
The trash-haulers were handed a monopoly in their franchise zone provided they met certain conditions: (1) Combined, they pay an annual franchise fee of $35 million; (2) they provide curbside pick-up for recycling; (3) they purchase clean fuel trucks and (4) they pay their employees living wages.
Zero Waste LA is a cash-cow for the City of Los Angeles and the private waste-haulers. The City, which sets the rates, says the new program is “fair and equitable” because, with companies no longer able to compete on price, this program has leveled the playing field. Without competition, however, they have created another public utility like DWP, where the consumer has no choice. Private trash haulers have no incentive to provide good service.
How Can You Help Fight It?
Fortunately, a group of community leaders, business owners and advocates have banded together to fight the Trash Monopoly Ordinance. Led by Executive Director David Hernandez, the Committee for Accountability and Good Government in Los Angeles is pursuing both a ballot initiative to repeal the plan and a class action suit. There are a number of ways in which real estate professionals can get involved.
Sign the Petition: The committee is set to begin a petition drive that will run from the second week in January until April 23rd. Their goal is 80,000 signatures in order to safely clear the 61,000 signatures required to get the Ballot Initiative to Repeal the Exclusive Ordinance on the November ballot. Once the petition circulates, you can sign it and get others to sign.
Provide Financial Support: The committee has an initial fundraising goal of $200,000, which will ensure a strong start and allow them to hire a professional signature gathering company when it is needed. Contributions can be sent to The Committee for Accountability and Good Government in Los Angeles, P.O. Box 9694, North Hollywood, CA 91609. If you are a company, please provide the name and address. If an individual, they need your name, address, occupation and employer.
Join the Suit: Hernandez' group is currently speaking with two top class action law firms that are willing to take the case. Once signed, the attorneys will assume the legal fees that are currently being paid by the committee and the Apartment Owners Association of California. Property owners subject to the ordinance can become plaintiffs in the suit by submitting bills as evidence and agreeing to testify if needed.
Please support the campaign to repeal this government-mandated monopoly.
Visit www.nolatrashmonopoly.com to read the petition and to contribute online.
Iconic Investments
16530 Ventura Blvd Suite #409
Encino, CA 91436
W: www.iconicinv.com
Iconic Investments is a Los Angeles-based boutique commercial real estate brokerage firm focusing on multi-family properties of 15 to 100 units throughout Los Angeles in all different sub-markets. Iconic represents multi-family property owners in dispositions, acquisitions, and 1031 exchanges.