A Proposal for the Dumps — Overhauling L.A.'s Waste Management System

by Gary Toebben

As a way to achieve State mandates for waste reduction and recycling, as well as generate more revenue, the City of Los Angeles is considering a major overhaul of how trash is collected for commercial and multi-family properties by instituting a franchise system. Neighboring cities have instituted franchise systems and the County of Los Angeles has started the process to move toward a non-exclusive franchise system. But that’s where the similarities between this trend and the City’s proposal end.

Instead of creating a non-exclusive franchise, that would set standards and allow any company that meets those standards to serve commercial or multi-family property in all parts of Los Angeles, the City's proposal would divide Los Angeles into possibly six separate franchise areas known as "wastesheds," and would limit the number of haulers allowed to operate in each area.

Last October, the Bureau of Sanitation (BOS) indicated that a multi-family waste haul request for proposal (RFP) would be released soon. But to date the BOS has not employed a public outreach effort to affected parties. For the City to consider a proposal that will affect every business owner and millions of residents without input from those stakeholders is irresponsible. Moreover, it ignores the basic question that must be asked of every new initiative considered by government: What is the economic impact to our businesses and citizens if this policy is instituted?

State mandated requirements have caused many other local governments to move toward a franchise system. In most cases, the systems set standards that assure quality, encourage competition and are transparent and equitable for all stakeholders. By breaking the City into "wastesheds" and limiting the number of haulers that can serve each area, the City will actually reduce competition and put the public at risk of labor disputes and waste haul strikes that would be very damaging to the local economy, as evidenced by similar strikes in Seattle and Chicago.

Los Angeles must move forward to meet the State mandated requirements, but it should do so in a way that promotes both quality service and competition among waste haulers. The City should take their cue from the County — the process is just beginning and includes meaningful outreach to all affected constituencies: haulers, residents and property owners alike.

The current City proposal, which will impact every commercial and multi-family property owner in Los Angeles and millions of tenants, has been orchestrated behind closed doors at City Hall. The bottom line is that this proposal and the process used so far, is for the dumps. 

And that's The Business Perspective.