CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Assignment of CalMet Services Inc. Exclusive Franchise Agreement for Residential Refuse and Recycling Services to Athens Services Meeting Date: January 11, 2022
RECOMMENDATION:
The City Council will consider adopting a Resolution approving the assignment of the Exclusive Franchise Agreement between the City of Commerce and CalMet Services Inc. for Residential Refuse and Recycling Services to Athens Services.
ANALYSIS:
As the City Council is aware, an agreement between CalMet Services Inc. (CalMet) and the City spans many years. On October 16, 2018, City Council executed a First Amendment to extend CalMet’s term by four years through June 30, 2023. At this same meeting, Council and staff discussed the Request for Proposals (RFP) that was underway at that time for Commercial Refuse and Recycling Services and aligning the agreement term end date for both residential and commercial services to potentially issue a new RFP in the future to solicit proposals for both commercial and residential services from haulers operating under the new semi-exclusive agreements. CalMet’s existing Agreement expires on June 30, 2023 and the 8 semi-exclusive agreements for commercial refuse and recycling services expire on October 31, 2023.
Recently, the City received two letters dated December 9, 2021, from Athens Services notifying the City of its “agreement dated November 18, 2021 to acquire all or substantially all of the assets of CalMet Services, Inc. (“CalMet”) along with its affiliate business, Paramount Resource Recycling (“Transaction”).” These letters also request the City for “consent of assignment of that certain Solid Waste Management Agreement dated July 1, 2014, including any duly executed amendments thereto, between the City of Commerce and CalMet Services, Inc. (“Agreement”).” CalMet’s Agreement with the City, paragraph 20, does allow for an assignment with written consent of the City. The letters and agreement were reviewed by the City Attorney’s office, which has indicated the assignment request is within parameters of the agreement. Staff recommends assigning CalMet’s Exclusive Franchise Agreement for Residential Refuse and Recycling Services to Athens Services.
Business should proceed as usual during the initial stages of the transition should this assignment be approved. Shortly after approval, Athens intends to submit their transition plan which staff intends to bring back to the City Council at a later date along with marketing materials for residents.
ALTERNATIVES:
Approve staff recommendation
Disapprove staff recommendation
Provide further direction to staff
FISCAL IMPACT:
There is no fiscal impact to the City of Commerce beyond what is allowable in the Agreement for annual CPI and tipping fee adjustments not to exceed 5% per year and approved by the City Council.
RELATIONSHIP TO STRATEGIC GOALS:
This item is related to a specific 2016 Strategic Goal to “create and pursue opportunities for collaboration and regional partnerships to maximize resources and address regional issues.” Approved by: Daniel Hernandez, Director of Public Works Prepared by: Gina Nila, Deputy Director of Public Works Operations Reviewed by: Josh Brooks, Director of Finance
Reviewed by: Vilko Domic, Assistant City Manager
Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Edgar P. Cisneros, City Manager Attachment:
Resolution
Athens Letter
Athens Brochure