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Solid Waste Franchise Proposal

City of Los Angeles

Board of Sanitation
City Hall, Room 1010
200 North Spring Street
Los Angeles, CA 90012

The City of Los Angeles Bureau of Sanitation is proposing to eliminate competition between the existing 104 commercial waste haulers who service businesses and apartments in Los Angeles. The proposal is to create a franchise system that will supposedly bring the city millions of dollars of new revenue.

The proposal would create 5 to 6 “waste shed” areas around the city. Private waste haulers would be invited to submit proposals for servicing the waste sheds.

Two or three haulers would be selected to service each area. They would be the only operators allowed to do business in the areas assigned. Their costs would be determined through negotiations with the city. Those selected would have to pay a franchise fee for the privilege of having a contract.

Since the City of Los Angeles is known for its anti-business attitude, such a policy would be an added nail in the city’s anti-business reputation. The proposal would likely cost more in lost tax revenues than would be extracted from its victims. Apartment tenants would also have to be taught and motivated into recycling their trash.

The Solid Waste Franchise Proposal would substantially reduce competition that reduces fees, and could result in a net reduction of overall fee and tax revenue.

It could easily reduce operating efficiencies, is likely to create corruption, and would be likely to create friction between tenants and apartment owners. Tenants whose trash is currently collected by Department of Sanitation trucks are already complaining about the department’s $48.xx solid waste charge on every DWP bill.

That amount significantly exceeds the charge by private waste haulers. In order to prevent the loss of revenue producing businesses, and keep apartment costs from escalating even faster, the Solid Waste Franchise Proposal should be scrapped, and apartment owners with city sanitation service should again be allowed to switch from city rubbish hauling.

Published inRental Property Issues

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