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L.A. City Council Approves Commercial Waste Franchise System

The multibillion-dollar waste hauling franchise system for both commercial and multifamily properties will begin in January 2018.

The idea of a waste hauling franchise system in Los Angeles was first discussed in 2012 as part of helping the city reach its zero waste goals. Four years later, the Los Angeles City Council moved forward with the idea and voted 13-0 to approve a $3.5 billion waste hauling franchise system for both commercial and multifamily properties, which will begin in January 2018. This decision was made in an effort to reduce the number of trips made by garbage trucks and to impose stricter labor and environmental standards on the waste and recycling industry.

With the new system, Athens Services, CalMet Services, NASA Services, Republic Services, Universal Waste Systems, Ware Disposal; and Waste Management Inc. Athens will possess 10-year franchise contracts worth approximately $3.2 billion to collect trash from about 65,000 commercial and multifamily properties throughout 11 franchise zones. These haulers will collectively pay $35 million in franchise fees to the city each year for the right to be the sole waste hauler in one of the 11 franchise zones.

Los Angeles Business Journal has the details:

The Los Angeles City Council on Friday approved a multibillion-dollar waste hauling franchise system for commercial and multifamily properties.

The 13-0 vote represents the culmination of a four-year effort by labor unions and environmental groups to convert the current open market for trash collection from commercial and multifamily properties to a tightly controlled system of exclusive franchises. The aim is to reduce the number of trips made by garbage trucks and more easily impose strict labor and environmental standards on the industry, all towards a city mandate to divert 90 percent of waste from landfills by 2025.

Read the full story here.

TAGS: Haulers
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