Athens Services
Solid Waste Handling Services
Agreement
Proposed Second Amendment
Public Works Department
May 20, 2025
2 Current Agreement
July 1, 2011
City Agreement
with Athens
Services
July 1, 2019
First Amendment
to Agreement
June 30, 2030
24 month
potential
extension
June 30, 2028
End of Term
(expiration if
not extended)
2025: We are here,
completing year 6 of 9
Annual contract value: $15.6M - includes ~$5.25M City pass through Contract duration:
Current Rates are Competitive
3 City Rate
Hawthorne $227.93
Manhattan Beach $231.04
Carson $233.77
Gardena $238.17
Redondo Beach $253.44
Inglewood $253.83
Lawndale $261.25
Long Beach $268.74
Hermosa Beach $312.14
Commercial FY24-25 Rates
(Price Comparison for 3-Yard Bin x1 Weekly)
City Rate
Inglewood $25.12
Gardena $26.22
Carson $27.88
Manhattan Beach $28.35
Redondo Beach $29.78
Hermosa Beach $31.03
Hawthorne $36.71
Lawndale $37.70
Torrance* $44.41
Rancho Palos Verdes* $46.06
Long Beach $50.00
Residential FY24-25 Rates
(Price comparison of 96gallon carts)
* No commercial exclusive franchise agreement
Included Services &
Community Benefits • Street sweeping • Road impact fees • Staff reimbursement • Unlimited City and RBUSD collection • City C&D and hazardous waste • Procurement targets • Compost and shred events • Christmas tree removal • Community education and outreach • Bulky item pick up 4 5
Industry Changes &
State Mandates
• Secondary market impacts
• SERRF closure / diversion reduction
• Three-stream requirement
Current Diversion Targets
Diversion
(Recycling,
Organics) -
50%
Transformation
- 25%
Landfill
- 25%
Landfill –
25%
6 Key Proposed Amendments
• Rate structure adjustment
• MFR & Commercial bundling
• MFR (5+) to Commercial schedule
• Optional scout service
• SB 1383 program changes
• Exclusive Roll-Off service
No
adjustment
Proposed adjustment
MFR w 5+ Units
Commercial
SFR & MFR up to 4 Units
7 Term Extension
CY 2025
Execute Second
Amendment
June 30, 2035
Term Second
Amendment
June 30, 2045
Second Optional
Extension*
June 30, 2040
First Optional
Extension*
* This is City’s option to extend
Key Proposed Amendments
8 Prop 218 Requirements
• Required for changes to rate methodology (& every 5 years) • Required for MFR and Commercial accounts in this case • Mail in Ballot
• Majority Protest Hearing for adoption by Council
• New rates allowed only upon adoption
• Estimate 3 months to complete Prop 218 process
• Requires proposed new rate schedule to begin Prop 218 Recommendation
Discuss and provide direction on:
• Proposed amendment topics
• Additional information to be requested
• Process and next steps
9 10
PROPOSED TERMS: KEY ELEMENTS
❑ Diversion Requirement: Reduce from current 75%
❑ Customer Billing: Multi-family units (5+) considered Commercial ❑ Classifications: Bundled Service and right-sizing
❑ Approved Rate Scheduling: Adjustments to rates schedule for multi-family units and commercial customers
❑ Scout Service Rates: Introduce Scout Fees $35 per month per trash bin bundle
❑ Term of Agreement: Proposal to Extend Agreement to June 30, 2035 with option to extend for two five year periods
11 PROPOSED TERMS: KEY ELEMENTS
❑ Roll-Off Service: Include roll-off services in exclusive franchise agreement after 5years noticing period
❑ South Bay Galleria: Include Galleria property in the
exclusive franchise agreement
❑ Overweight/Overflow Containers: Changes process to fine and adjust service for overflowing containers
❑ SB1383 Program: Eliminate two-stream service. Adjust
contamination fee to include all commodities and remove requirement to divert 8.5% of solid waste collected from residential refuse carts
❑ Other changes (Appendix 1 ) 12