This article was posted on Wednesday, Mar 01, 2017

Dear Councilperson Koretz:

We both recall that four years ago there was a “massive” fight over this ordinance and most Councilpersons voted consistent with the recommendation made by the County Federation of Labor.  Approximately 168 small trash haulers were put out of business.  The City was divided into seven territories.  The mega-super-large trash hauling companies obtained all of the contracts and a virtual monopoly.

There was no chance in the future for competitive bidding.  These companies can dominate the pricing in their jurisdiction/territory.

As suggested, all seven huge companies would become unionized.  As suggested, if a companion or sister union went out on strike, they would call upon the trash haulers to honor the strike and refuse to pick up trash in Los Angeles.  This would be a disaster.

You may recall that several years ago some clerical workers or secretaries at the Los Angeles Harbor promoted a strike.

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Monopoly Stranglehold

There are 620,000 RSO units.  The annual rental adjustment or increase is limited to 3%. Scholars believe that under the new program, trash hauling may increase by as much as 10% to 13%.  And yet, there appear to be no pass-throughs. There is some silly formula based upon CPI: yet, your senior staff agrees that Consumer Price Index fails to address or capture the actual costs of apartment management expenses and operational concerns.

This is an emergency and I hope you and others meet with industry leaders.  An arrangement wherein the property owners do not get a fair return on investment violates the principles of the Rent Stabilization Ordinance.  An ordinance that is tied to CPI is also inappropriate for the reason stated.

[AOA Comment:  We can stop this monopoly IF apartment owners will join in and support putting the initiative on the ballot.  Every owner of any size should donate at least $500 to $1,000.  It takes money to beat the big politicians and we can do it!  One property owner already just received an increase from $85 a month to $270 a month and you could be next unless we stop them NOW.]