Many commercial businesses in Los Angeles are falling prey to the price gouging which comes from a closed monopolized method of providing trash service.

Much like the DWP, the rates and increases are set or granted by your elected officials. With few exceptions, you must pay what they charge.

Much like the DWP, the challenge you experience with service and yes, even errors in overcharging, is resolved with, you guessed it, the DWP.

Without competition for your hard-earned dollars, there is no incentive to provide the best service; especially after 10-year exclusive contacts have been awarded to these seven collection companies by our city officials.  Trash collectors?  They are Money collectors now – your money!]

The “Zero Waste Program” adopted by the City of Los Angeles is no different. Seven trash haulers have been awarded the exclusive rights to pick up all commercial trash in the zones they have been awarded. With few exceptions, that includes every commercial business, including apartments.

While the City’s Chief Administrative Officer stated the City could achieve its environmental goals with a Non-Exclusive Franchise Waste Hauling Program, there was more to this policy change then the stated “green” goals.

The requirement for the use of non-diesel engine vehicles is a state requirement for haulers, not a local one. Some haulers had already replaced their vehicles to comply and they did not receive a franchise zone and are being excluded from picking up trash in Los Angeles.

The so called “price war” when it comes to lowering rates for customers, is a plus in every arena such as gasoline, housing, food, etc. But when it comes to how much you pay for your trash collection, it is seen as a negative?

As far as the City conducting a survey and finding many customers were “dissatisfied”, the current system provided a clear and direct option which comes with free enterprise; fire the provider and get one who bests serves your needs.

How will that work out with the monopolized DWP-type Trash Franchise System? How does that work out with other programs under the total control of the City of Los Angeles?

Will you be getting more services or will you be required to do more work and pay more for the same service? You will be required to separate your trash and recyclables and you could pay more for “valet” services if they, (not you), determine that your trash bin needs to be rolled out to the street.

With the base increase for a standard bin being about 100% and then additional fees, the customers end up paying more for less. Some of the bills already received by apartment owners state an additional cost described as “Increased Labor Cost”. Yes, now we get to it.

To submit a proposal to receive a franchise zone, you needed to be a union shop or have a Labor Peace Agreement. As we see, those connected with organized labor are connected to the organization which is a driving force behind the Zero Waste Program.

City Council members who voted for the Exclusive Franchise System received indirect benefits from the same Labor Unions in getting elected or re-elected to office. [Follow the money.  One owner was paying $700 a month and the new collection company already raised the rate to $791.72.  PLUS, they added a valet charge of an additional $600 a month to “roll out” the trash.  You and I know that some of that money will be used to re-elect the politicians who voted to give them these “sweet deals”!

For all of the above reasons, we are presenting a legal challenge to the Exclusive Trash Franchise.  We have filed a lawsuit against the City of Los Angeles to stop this monopolized gouging of property owners.

[AOA:  To help support AOA’s lawsuit to delay and/or stop the high cost of this monopoly that our “friendly” politicians have once again voted to pass on to housing providers, please fill out the coupon below and donate at least one month of what it costs for your current trash collection.  Thank you.]

 

If you would like further information, call David Hernandez, Lead Proponent & Executive Director at (818) 448-3803, State ID # 1334520 – www.nolatrashmonopoly.com.

 

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