Oakland CA Landlords Sue Over City's Trash Rates

Date: June 29, 2016

Source: News Room

Oakland, CA landlords, emboldened by a scathing civil grand jury report, have filed a lawsuit challenging the city's $1.5 billion garbage collection contract as an unfair and improper tax that is unconstitutional under state law. Wayne Rowland, president of an association whose 1,200 members own or manage more than 20,000 properties, said the purpose of the suit was "to right the many wrongs and injustices" in Oakland's trash collection fee system. Attorney Andrew Zacks, who filed the suit in Alameda County Superior Court, said that under state law, fees for property-related services such as garbage collection aren't supposed to exceed what is required to provide the actual service. But under the 2014 contract, which several city council members now deny reading carefully before approving it, many apartment owners have seen their garbage and recycling rates increase by upward of 150 percent. To shift some of the costs from homeowners, the city structured the contract to put more of the expense on landlords, restaurants and other businesses, including nonprofits. Evidently the city council put together the deal behind closed doors. Following complaints about skyrocketing bills, the council later amended the rates to bring down the charges for restaurant recycling.

Zacks said many of the lawsuit's allegations were confirmed by the recent Alameda County Grand Jury report that blasted Oakland's 30 percent franchise fee as "disproportionately higher" than franchise fees paid to other Bay Area cities. Such fees are common in California but not usually that high. Nearby Alameda's franchise fee is 10 percent. Berkeley has a 20 percent fee, but only for businesses.

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