News Alert: Pasadena Trash Hauling Rates to Increase by 21% to 63%!

Industry News,

At the May 13th Pasadena City Council meeting, the Council unanimously voted in favor of increasing trash hauling rates for commercial customers by 21% to 63% starting on July 1st. Additional increases will occur every year through July 1, 2028. Unfortunately, for the City’s rental housing providers, this latest and future increases can never be made up due to the passage of extreme rent control regulation, Measure H.

The higher trash hauling rates are intended to pay for increased recycling costs, the anticipated closure of Scholl Canyon Landfill (resulting in longer hauling time to a farther landfill), funding of a reserve fund at 25% of fees, and transitioning trash hauling trucks from gasoline to Zero Emission Vehicles (ZEV). While AAGLA agrees that costs go up over time, we strongly opposed such drastic increases coming at a time when few rental housing providers can afford them after years of statewide eviction moratoriums and large amounts of unpaid back rent. 

AAGLA attended and spoke at the City Council meeting urging the Council to delay funding the reserve fund and ZEV transition for a few years to allow mom-and-pop owners to recover from the severe financial burden placed upon them during COVID-19. This on top of the financial hardships associated with the new rent caps imposed by Measure H that do not allow rental housing providers to even keep up with the full rate of inflation (as the cap is currently only 75% of the Consumer Price Index). Had the City Council been willing to exclude funding the reserve fund at 25% and agreed to delay the SEV transition, those two line items would have significantly reduced the rate increases needed this year and over the next few years.  Unfortunately, AAGLA was only one of two speakers that turned out for the meeting and our requests were unheeded by the Council.

Council Members Tyron Hampton and Justin Jones asked pertinent questions as to how these huge rate increases would impact residents. Unfortunately, the Department of Public Works only provided generic responses by reporting that rates had not been increased for several years.  While the Council reviewed a total of 5 different rate options, including no changes to existing rates, the Department of Public Works staff proposal was to adopt the option with the HIGHEST rate increase and Mayor Victor Gordo supported it saying, “we don’t have a choice but to act.”  Council Member Gene Matsuda made a motion to accept the staff’s recommendation, which was seconded by Council Member Felicia Williams and the rate increased passed unanimously.

STAFF REPORT

This article is for informational purposes only. If you have any questions regarding your property or specific tenancies and the requirements of any local law changes described herein, please consult with an attorney.