FRANCHISES FOR THE COLLECTION, TRANSPORTATION AND PROCESSING OF COMMERCIAL AND MULTI-FAMILY SOLID WASTE

Los Angeles Municipal Code ch. VI, art. 6, pt. FRANCHISES FOR THE COLLECTION, TRANSPORTATION AND PROCESSING OF COMMERCIAL AND MULTI-FAMILY SOLID WASTE

in effect

Los Angeles Municipal Code § 66.33 PURPOSE.

SEC. 66.33. PURPOSE. (Amended by Ord. No. 184,665, Eff. 1/25/17.) Under the City’s RENEW LA Plan, the City committed to reaching Zero Waste by diverting 70 percent of the solid waste generated in the City by 2013, diverting 90 percent by 2025, and becoming a Zero Waste city by 2030. State law currently requires at least 50 percent solid waste diversion and establishes a state-wide goal of 75 percent diversion by 2020. Moreover, state law requires mandatory commercial recycling in all businesses and multi- family complexes and imposes additional reporting requirements on local agencies, including the City. In order to meet these requirements and goals, increasing recycling and diversion in the commercial and multi-family waste sectors is imperative. The commercial and multi-family sectors produce most of the City’s solid waste. Currently, a significant amount of commercial and multi-family solid waste generated in the City, including recyclables and organics, is going to landfills, resulting in unnecessary greenhouse gas emissions. The City has a responsibility under state law to ensure effective and efficient waste and recycling service for its businesses and residents. The City will fulfill that responsibility most successfully, and also meet its own Zero Waste policy goals, by ensuring that its solid waste, including recyclables and organics, are collected, transported and processed in a manner that reduces environmental and social impacts on the City and the region. An exclusive, competitive franchise system for the collection, transportation and processing of commercial and multi-family solid waste will aid the City in meeting its diversion goals by, among other things: (i) requiring franchisees to meet diversion targets; (ii) increasing the capacity for partnership between the City and solid waste haulers; (iii) allowing the City to establish consistent methods for diversion of recyclables and organics; (iv) increasing the City’s ability to track diversion, which will enable required reporting and monitoring of state mandated commercial and multi-family recycling; (v) increasing the City’s ability to ensure diversion quality in the processing facilities handling its waste and recyclables; and (vi) increasing the City’s capacity to enforce compliance with federal, state, county and local standards. An exclusive, competitive franchise system will also have other beneficial effects, including a reduction in adverse environmental impacts – unnecessary solid waste truck traffic as well as emissions and street degradation – and also protection of ratepayers, ensuring high customer service standards, and increase in solid waste hauler accountability. As the City moves towards its Zero Waste goals through an exclusive franchise system, technology also should improve over the course of time to increase source reduction, recycling and composting, and diversion opportunities and capabilities. Relatedly, so too should the opportunities increase in number and diversity of qualified subcontractors to perform work industry-wide, including opportunities for development and mentoring of franchisees and subcontractors. The City has an interest in increasing the number and diversity of qualified personnel in the solid waste and recycling industry, especially as to those individuals available to service the City. While the move to an exclusive franchise system will generate many benefits for the City and its residents, the change also will increase the risk that a labor dispute will interfere with collection services. To protect the City’s interest in efficient and uninterrupted collection services, the City will require franchisees to produce evidence that they are parties to written, enforceable agreements that prohibit labor organizations and their members from engaging in picketing, work stoppages, boycotts or other economic interference with collection services.

Los Angeles Municipal Code § 66.33.1 DEFINITIONS.

SEC. 66.33.1. DEFINITIONS. (Added by Ord. No. 182,986, Eff. 5/28/14.) As used herein and in Sections 66.33 to 66.33.10, the following terms shall have the meanings set forth below: 1. Clean Fuel Vehicles shall mean those vehicles that meet or exceed the requirements of Southern California Air Quality Management District Rule 1193, as now existing and as may be amended. 2. Customer shall mean any individual, firm, partnership, joint venture, association, fraternal organization, corporation, estate trust, business trust, receiver, trustee, executor, administrator, syndicate, the United States, any state, any county, city and county, municipality, district or other political subdivision of any state or of the United States, or any other group or combination acting as a unit. 3. Franchise Agreement shall mean a written contract between the Bureau and a franchisee setting forth the terms and conditions under which the franchisee shall perform collection services in the City. 4. Franchisee shall mean a solid waste hauler granted an exclusive franchise to provide collection services in a franchise zone. 5. Franchise Zone shall mean a geographic area of the City within which a franchisee shall provide collection services pursuant to the terms of a franchise agreement. 6. Labor Peace Agreement shall mean an enforceable agreement between a franchisee, or a franchisee’s subcontractor, and a labor organization (as defined by 29 U.S.C. § 152(5)) that represents or seeks to represent the franchisee’s or subcontractor’s employees providing collection services and that contains provisions under which the labor organization for itself and its members agrees to refrain from engaging in any picketing, work stoppages, or any other economic interference with the franchisee’s performance of collection services. 7. On-location Filming Waste shall mean solid waste generated and collected at a commercial film production permitted pursuant to Section 12.22 A.13. of this Code or Section 22.350 of the Los Angeles Administrative Code. 8. Studio shall mean one or more adjacent parcels of real property occupied by a motion picture or television production and distribution enterprise and containing sound stages totaling no less than 50,000 square feet in area and 18 feet in height designed for motion picture or television production and utilized by that enterprise specifically for such purpose.

Los Angeles Municipal Code § 66.33.2 EXCLUSIVE FRANCHISE FOR COLLECTION SERVICES.

SEC. 66.33.2. EXCLUSIVE FRANCHISE FOR COLLECTION SERVICES. (Added by Ord. No. 182,986, Eff. 5/28/14.) (a) The City may award contracts for collection services for commercial establishments and multi-family dwellings through an exclusive franchise agreement authorizing and obligating the holder to provide collection services within a franchise zone. (b) A franchisee’s exclusive right to provide collection services shall not include the right to collect the following materials, the collection of which is not prohibited by this Article: (1) Solid waste removed from a commercial establishment or multi-family dwelling by a self hauler; (2) Construction and demolition waste; (3) Solid waste collected by the City; (4) On-location filming waste. (c) Any franchisee may contract with a studio for collection services regardless of the franchise zone where the studio is located.

Los Angeles Municipal Code § 66.33.3 UNLAWFUL ACTIVITIES.

SEC. 66.33.3. UNLAWFUL ACTIVITIES. (Added by Ord. No. 182,986, Eff. 5/28/14.) (a) Provision of Collection Services. Except as provided in Sections 66.33.2(b) through (c) and Section 66.33.3(b), it is unlawful for any person to provide collection services to a commercial establishment or multi- family dwelling within a franchise zone unless a written franchise agreement therefor has been executed between such person and the City, and such agreement is in full force and effect. (b) Transition Period. The City, in its sole discretion and consistent with state law, may authorize a solid waste hauler possessing a valid permit issued pursuant to Section 66.32, et seq., to continue providing collection services in a franchise zone to the extent necessary to meet the needs of any customer in that zone until the franchisee is able to perform the collection services.

Los Angeles Municipal Code § 66.33.4 FRANCHISE ZONES.

SEC. 66.33.4. FRANCHISE ZONES. (Added by Ord. No. 182,986, Eff. 5/28/14.) The Bureau shall divide the territory within the City into eleven (11) franchise zones, the designation of which shall be subject to the approval of the Board and City Council. Three (3) of the franchise zones shall be designed as “single” zones, which shall not be granted in combination with any other franchise zone.

Los Angeles Municipal Code § 66.33.5 FRANCHISE AGREEMENT FEES.

SEC. 66.33.5. FRANCHISE AGREEMENT FEES. (Added by Ord. No. 182,986, Eff. 5/28/14.) The Bureau shall include in each franchise agreement a negotiated annual franchise fee to be paid to the City by the respective franchisee.

Los Angeles Municipal Code § 66.33.6 MINIMUM FRANCHISE AGREEMENT STANDARDS.

SEC. 66.33.6. MINIMUM FRANCHISE AGREEMENT STANDARDS. (Added by Ord. No. 182,986, Eff. 5/28/14.) The following minimum standards shall apply to all franchises granted under this part, and shall be made binding terms of all franchise agreements: (a) Required Collection Services. During the term of the franchise agreement and subject to its terms and conditions, each franchisee shall collect, transport, and deliver for processing or disposal all solid waste generated at all commercial establishments and multi-family dwellings located within that franchise zone. (b) Clean Fuel Vehicles. All vehicles used by a franchisee to provide collection services under a franchise agreement shall at all times be in compliance with all applicable air pollution control laws and regulations, including but not limited to the California Air Resources Board “Diesel Particulate Matter Control Measure for On-Road Heavy Duty Residential and Commercial Solid Waste Collection Vehicle Diesel Engines” and South Coast Air Quality Management District Amended Rule 1193. (c) Labor Peace Agreement. As a condition for the grant of a franchise agreement, a condition precedent to any franchisee or subcontractor performing collection services, and as an ongoing, material condition of the franchise agreement, each franchisee shall provide satisfactory evidence that it, and any subcontractor who will provide collection services, are a party to labor peace agreement(s) with any labor organization that represents any group of the franchisee’s or subcontractor’s employees who are or will be involved in providing collection services, and with any labor organization that seeks to represent any group of a franchisee’s or subcontractor’s employees who are or will be involved in providing collection services, under the following limitation: (1) This Subsection does not require an employer to recognize a particular labor organization. (2) This Subsection does not require an employer to enter into a collective bargaining agreement establishing the substantive terms and conditions of employment. (3) This Subsection is not intended to, and shall not be interpreted to, enact or express any generally applicable policy regarding labor/ management relations, or to regulate those relations in any way. (4) This Subsection is not intended to provide a preference for any outcome in the determination of employee preference regarding union representation. (d) Processing and Disposal. A Franchisee shall deliver all recyclables and organics collected from commercial establishments and multi-family dwellings exclusively to facilities certified by the City pursuant to Section 66.33.8. (e) Diversion. (1) Each franchisee shall provide every customer within its franchise zone a container specifically designated for the collection of recyclables. (2) Unless the Bureau issues a waiver to a Customer, each franchisee shall provide every Customer within its franchise zone a container specifically designated for the collection of Organics. (Amended by Ord. No. 187,711, Eff. 1/18/23.) (3) All franchise agreements shall require franchisees to meet specific landfill disposal reduction requirements. (f) Compliance with Living Wage and Responsible Contractor Requirements. Each franchisee shall comply with all requirements of an “Employer” under the City’s Living Wage Ordinance, Los Angeles Administrative Code Section 10.37, et. seq. Each franchise agreement is hereby deemed a “contract” for purposes of the City’s Responsible Contractor Program, Los Angeles Administrative Code Section 10.40, et seq., and each franchisee shall comply with all requirements of a “Contractor” thereunder. (g) Whistleblower Protection. A franchisee shall not retaliate against an employee who, in good faith, has made a protest or raised a complaint against some practice of the franchisee on the basis of a reasonable belief that the practice is in violation of any provision of this Article or other applicable laws. A franchisee will not retaliate against an employee who discloses or threatens to disclose to a supervisor or to the City or another public body any activity, policy, or practice of the franchisee that the employee reasonably believes is in violation of this Article or other applicable laws.

Los Angeles Municipal Code § 66.33.7 SUBCONTRACTOR INFORMATION.

SEC. 66.33.7. SUBCONTRACTOR INFORMATION. (Added by Ord. No. 184,665, Eff. 1/25/17.) (a) Subcontractor utilization relating to each Franchisee’s provision of collection services in its Franchise Zone(s) must be performed and reported consistent with the following requirements: (1) Each Franchisee must submit quarterly reports to the Bureau of Sanitation regarding its use of subcontractors: subcontractor’s name, address, phone number, status (such as Minority Business Enterprise, Women Business Enterprise, Emerging Business Enterprise, Disabled Veterans Business Enterprise, Small Business Enterprise, and all other business enterprises), subcontractor’s City of Los Angeles Business Tax Registration Certificate number, dollar amount of subcontract work to be performed, description of subcontract work to be performed, and any other additional information as specified by the Bureau of Sanitation in writing not less than 60 days in advance of the report deadline; (2) Each Franchisee must perform subcontractor outreach consistent with rules and regulations adopted by the Department of Public Works, Bureau of Contract Administration as the Designated Administrative Agency (DAA) to define the outreach and/or good faith effort for and evaluations of any subcontractor additions and/or subcontractor substitutions for which prior written approval by the City is required, and subject to applicable law; and (3) Each Franchisee must submit, at a minimum, quarterly reports to the Bureau of Sanitation of any current or anticipated subcontracting opportunities during the term of the franchise. Each Franchisee must use its best efforts to identify these additional subcontracting opportunities. i. The Bureau of Sanitation shall evaluate quarterly each Franchisee’s performance in achieving best efforts to identify additional subcontracting opportunities to increase participation by subcontractors. The Bureau of Sanitation shall develop rules and regulations as to how to determine whether each Franchisee has made these best efforts and to assign monetary penalties for failure of any Franchisee to demonstrate best efforts. These rules and regulations shall be presented for approval to the Board. (b) The City shall not exercise any option to renew a Franchise Agreement with a Franchisee who has not complied with the requirements in Subsection (a), or who has not made efforts to develop and mentor its subcontractors, conduct any additional outreach consistent with the operative rules and regulations since the award of the Franchise Agreement to increase and balance the diversity of its utilized subcontractors, or to meet or exceed the pledged participation of each subcontractor listed at award or added as a result of any additional outreach efforts.

Los Angeles Municipal Code § 66.33.8 REVENUE FROM SALE OF RECYLABLES.

SEC. 66.33.8. REVENUE FROM SALE OF RECYLABLES. (Renumbered by Ord. No. 184,665, Eff. 1/25/17.) The Bureau and franchisees shall negotiate, and all franchise agreements shall include, provisions addressing revenue sharing from the sale of recyclables by franchisees and processing facilities.

Los Angeles Municipal Code § 66.33.9 CERTIFICATION OF PROCESSING FACILITIES.

SEC. 66.33.9. CERTIFICATION OF PROCESSING FACILITIES. (Renumbered by Ord. No. 184,665, Eff. 1/25/17.) (a) The Board may certify for a five-year period facilities to accept solid waste collected by franchisee’s providing collection services under a franchise agreement under criteria established by the Bureau and approved by the Board. Facilities shall be inspected by the City prior to certification, and each certification shall be conditioned on the facility granting the City the right to inspect the facility during the period of certification to verify compliance with the terms of certification. (b) The City may suspend or revoke certification of a facility upon 30 days notice by issuance of a notice of suspension or notice of revocation, if the facility fails to comply with any of the terms and conditions specified in the certification or in this Code, under the process set forth in Section 66.32.3(d).

Los Angeles Municipal Code § 66.33.10 PERMIT REQUIREMENT.

SEC. 66.33.10. PERMIT REQUIREMENT. (Renumbered and Amended by Ord. No. 184,665, Eff. 1/25/17.) Nothing in Sections 66.33 through 66.33.9 relieves any franchisee from the requirement to obtain and maintain a permit pursuant to Sections 66.32 through 66.32.5 of this Article or any other permit or license otherwise required by law for the provision of such services.

Los Angeles Municipal Code § 66.33.11 SEVERABILITY.

SEC. 66.33.11. SEVERABILITY. (Renumbered by Ord. No. 184,665, Eff. 1/25/17.) If any part or provision of this Section or the application of this Section to any person or circumstance is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, the remainder of this Section, including the application of such part or provisions to other persons or circumstances, shall not be affected by such holding and shall continue in full force and effect, and to this end, the provisions of this Section are severable.

Source: City of Los Angeles, Charter and Codes (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/los_angeles/latest/lamc/0-0-0-285079Fetched: 10/24/2026