Apartment Association of Greater Los Angeles Files Lawsuit in Federal Court Against the City of Los Angeles Challenging the City’s Alleged Monopolistic Trash Hauling Scheme
THE ANGEL–(BUSINESS WIRE) – The Greater Los Angeles Apartment Association (AAGLA) has filed a lawsuit against the City of Los Angeles on behalf of the city’s housing providers. The lawsuit filed with the Federal Supreme Court is a constitutional challenge that essentially indicates that the city’s garbage transport ordinance, both at first glance and with respect to members of the housing association, is a regulatory takeover of property that goes unconstitutionally too far and goes against the law The fifth amendment violates the equality clause and the contract clause of the U.S. Constitution by blocking the ability and ability of members to enter into contracts without outside garbage hauliers. The lawsuit further asserts that the ability and ability of housing providers to conclude contracts on a free market was unconstitutionally violated by the regulation. The named plaintiffs include the Apartment Association in the Los Angeles area, the AIHM Hotel / Motel Association, Balubhai Patel and Harold Greenberg, a member of the AAGLA Board of Directors.
On April 8, 2014, the city passed an ordinance that fundamentally changed the way solid waste is collected in commercial facilities and apartment buildings in the city, moving from a free-market, highly competitive system to one that waste transport companies do Granted exclusive rights offer collection services within their “franchise zones”. The exclusive franchise system that was ultimately created was originally referred to as “Zero Waste LA” or, more precisely, “Zero Waste LA Exclusive Franchise System”. In or around 2017, however, the exclusive franchise system was renamed “RecycLA”, as the program is called today. The city’s Waste Transport Ordinance requires all commercial and virtually all multi-family owners of residential properties to enter into a contract with the exclusive franchisee for garbage transportation within the “franchise zone” where their property is located, making it illegal for non-franchisees to To provide collection services within the city limits.
Before RecycLA was founded, property owners could choose from hundreds of garbage trucks around the city and benefit from competitive prices. After RecycLA was founded, property owners could only sign one contract with one of the exclusive waste transport monopoly franchisees for the city’s seven “franchise zones”. As a result, the city’s RecycLA monopoly has resulted in systematic abuses by the city that continue to this day, including awarding contracts in exchange for millions of dollars in annual franchise fees that are now being passed on and burdening owners with waste transportation fees that are around Have increased 200% to 400% or more per year. Owners of multi-family rental properties who were already equipped with price controls that reduce the annual rent increases to only 3% per year, and who are now subject to a “freeze on rent increases” ordered by the city for the duration of the declared emergency and one year afterwards, have done so has been hit hard as the city seeks to fill its pension gap on the backs of property owners by passing millions of dollars on franchise fees from garbage trucks.
AAGLA Chairman Earle Vaughan stated, “The city’s monopoly on waste transportation is clearly unconstitutional and is a governmental measure in violation of the Fifth Amendment to the US Constitution.” AAGLA Executive Director Daniel Yukelson stated, “The RecycLA -Monopoly was introduced with serious service issues that have not yet been addressed. It’s just another attack on the hard-working rental housing providers in the city who are the only group of people providing affordable housing for members of our Los Angeles community. It is pathetic that the city sold its low-cost regional rubbish collection monopoly to the public in order to encourage recycling. However, it only exists to cover the city’s severe pension deficits. ”
AAGLA is represented by lawyer Frank A. Weiser from Los Angeles. Mr. Weiser stated, “The city’s ordinance goes way too far unconstitutionally and violates the Fifth Amendment to the US Constitution by blocking the ability and ability of AAGLA members to contract with competitive external garbage haulage companies.”
The Greater Los Angeles Apartment Association promotes the highest level of professionalism in the rental housing industry. This goal is achieved by offering a wide range of educational seminars and member events every year, providing expert operational advice on a daily basis, and providing and maintaining practically all conceivable types of contract that rental apartment providers need in order to successfully own and manage rental properties. The association also acts as a strong advocate and lobbyist for rental housing providers at the local, state, state and federal levels. Owning and operating rental homes has become a highly regulated industry, and as a result owning and managing rental properties is far more challenging and risky than ever. Without an organization like the Greater Los Angeles Apartment Association, there would be no other voice fighting for the rights of real estate owners in town halls, county offices, and state and federal capitals. AAGLA IS THE VOICE THAT DOES CHANGE!