CITY OF POMONA
COUNCIL REPORT
December 19, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: EXTENSION OF CITY’S NON-EXCLUSIVE COMMERCIAL SOLID WASTE FRANCHISE AGREEMENTS AND AGREEMENT FOR RECYCLE BIN AND ROLL-OFF SERVICES FOR CITY FACILITIES RECOMMENDATION:
It is recommended that the City Council take the following actions:
Approve an extension to the current agreement with Arakelian Enterprises, Inc., dba Athens Services, from January 1, 2023 through June 30, 2023, for recycle bin and roll-off services for City facilities; Approve an extension to the current agreement with Arakelian Enterprises, Inc., dba Athens Services, from January 1, 2023 through June 30, 2023, for services in the Angela-Chanslor and Abbey-Karesh neighborhoods; Approve an extension to the current commercial non-exclusive franchise agreement with Arakelian Enterprises, Inc., dba Athens Services, from January 1, 2023 through June 30, 2023; Approve an extension to the current commercial non-exclusive franchise agreement with Burrtec Waste Industries, Inc., from January 1, 2023 through June 30, 2023; Approve an extension to the current commercial non-exclusive franchise agreement with Zerep Management Corporation, dba Valley Vista Services, Inc., from January 1, 2023 through June 30, 2023; Approve an extension to the current commercial non-exclusive franchise agreement with USA Waste of California, Inc., dba Waste Management, from January 1, 2023 through June 30, 2023; and Authorize the City Manager to execute the extensions to the contracts on behalf of the City, subject to review by the City Attorney.
EXECUTIVE SUMMARY:
Approval of these extensions will allow the City to continue its commercial and multi-family waste collection services, as well as continue waste collection at City facilities without disruption, while the City prepares to transition to the use of an exclusive residential and commercial franchise hauler effective July 1, 2023.
FISCAL IMPACT:
The City will continue to receive quarterly franchise fees allocated to the General Fund (Fund 101) and the City’s Franchise Fee Funded Programs Fund (Fund 587). Further, the cost of the trash service for the Angela-Chanslor and Abbey-Karesh neighborhoods is borne by the owners of the rental properties consisting of more than two units.
PREVIOUS RELATED ACTIONS:
On May 16, 2016, the City Council adopted Ordinance No. 4225 awarding non-exclusive franchise agreements to the City’s four commercial haulers: Burrtec Waste Industries, Inc. (Burrtec), Arakelian Enterprises, Inc., dba Athens Services (Athens), Zerep Management Corporation, dba Valley Vista Services, Inc. (Valley Vista), and USA Waste of California, Inc., dba Waste Management (Waste Management), for a term of five years. On May 16, 2016, the City Council also awarded Athens an agreement to provide trash and recycle bin roll-off services for City facilities. On May 3, 2021, the City Council approved extensions to these agreements through December 31, 2021. On November 15, 2021, the City Council approved extensions to these agreements through December 31, 2022, and incorporated relevant SB 1383 compliance provisions. On November 21, 2022, the City Council approved Ordinance No. 4323 awarding an exclusive franchise agreement to Arakelian Enterprises, Inc., dba Athens Services, for residential and commercial solid waste, recyclable materials, and organic waste collection services.
On November 2, 2015, the City Council approved a Resolution of Intent to award an exclusive two-year commercial solid waste franchise agreement to Athens to provide solid waste services in the Angela-Chanslor and Abbey-Karesh neighborhoods, and to introduce the first reading of the ordinance to award the agreement to Athens Services. On November 16, 2015, the City Council conducted a Public Hearing on the matter and approved the agreement. On November 16, 2020, the City Council approved an extension to the current agreement from December 10, 2020 through December 9, 2021. On December 6, 2021, the City Council approved an extension to the agreement from December 10, 2021 through December 31, 2022.
DISCUSSION:
Approval of this report will extend the current contracts through June 30, 2023. City Code 2-984 requires Council approval on contracts that exceed five (5) years. The City entered into five (5)-year contracts with its four non-exclusive commercial solid waste franchise waste haulers in 2016. In addition, the City executed a 5-year contract with Athens Services for trash and recycle bin and roll-off services for City facilities. The four commercial hauler contracts and the contract for trash and recycle bin and roll-off services for City facilities expired on June 30, 2020 and May 31, 2021, respectively; extensions were implemented through December 31, 2021, and again through December 31, 2022.
The City conducted a RFP process to consider the use of one exclusive franchise hauler to address both residential and commercial solid waste services. On November 21, 2022, the City Council approved Ordinance No. 4323 awarding an exclusive franchise agreement to Arakelian Enterprises, Inc., dba Athens Services, for residential and commercial solid waste, recyclable materials, and organic waste collection services. In preparation for this transition, the City must extend current hauler agreements with the four (4) haulers to continue to provide services until the exclusive franchise agreement takes effect on July 1, 2023. Additionally, during the transition from non-exclusive franchise agreements to an exclusive franchise agreement, the haulers agree to be cooperative and responsive with the transfer of important customer and billing data, along with gate codes and keys, to the approved, exclusive hauler.
Prepared by:
Maritza Sosa-Nieves, Senior Management Analyst
Extension of Agreements with Franchise Waste Haulers through June 30, 2023