L1 - blue folder — Redondo Beach City Council, May 19, 2026

BLUE FOLDER ITEM
Blue folder items are additional back up material to administrative reports and/or public comments received after the printing and distribution of the agenda packet for receive and file.

CITY COUNCIL MEETING
May 19, 2026
L.1. 26-0476 PUBLIC HEARING TO CONSIDER ESTABLISHING CONTRACTOR’S

CHARGES AND CORRESPONDING CITY FEES FOR RESIDENTIAL, MULTI-FAMILY, AND COMMERCIAL SOLID WASTE HANDLING SERVICES FOR THE 2026-2027

FISCAL YEAR AND FOR FUTURE RATE ADJUSTMENTS AND TO DETERMINE

WHETHER A MAJORITY PROTEST EXISTS
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2605-032, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, ESTABLISHING CONTRACTOR’S CHARGES AND CORRESPONDING CITY FEES FOR

RESIDENTIAL, MULTI-FAMILY, AND COMMERCIAL REFUSE COLLECTION FOR THE 2026-2027 FISCAL YEAR AND ORDERING THE ANNUAL REFUSE CHARGES FOR FISCAL YEAR 2026-2027 TO BE COLLECTED ON THE COUNTY OF LOS ANGELES

TAX ROLL

APPROVE THE SECOND AMENDMENT TO THE AGREEMENT WITH ARAKELIAN ENTERPRISES INC., DBA ATHENS SERVICES, FOR SOLID WASTE HANDLING

SERVICES, TO UPDATE THE FEE STRUCTURE, ADD AND MODIFY CERTAIN SOLID WASTE PROGRAMS AND SERVICES, AND EXTEND THE TERM TO JUNE 30, 2036 PROCEDURES:
a. Open the Public Hearing and take public testimony concerning the proposed charges and corresponding City fees for solid waste handling services for the 2026-2027 fiscal year;
b. Close the Public Hearing and determine whether a majority protest exists; c. Adopt by Title Only Resolution No. CC-2605-032; and
d. Approve the Second Amendment to the Agreement with Arakelian Enterprises, Inc., dba Athens Services
CONTACT: ANDREW WINJE, PUBLIC WORKS DIRECTOR
• Second Amendment - Signed and clarifying language in Section 26 -1-

SECOND AMENDMENT TO

SOLID WASTE HANDLING SERVICES AGREEMENT

BETWEEN THE
CITY OF REDONDO BEACH AND ARAKELIAN ENTERPRISES, INC.

THIS SECOND AMENDMENT TO THE SOLID WASTE HANDLING SERVICES AGREEMENT (“Second Amendment”) between the City of Redondo Beach (“City”) and Arakelian Enterprises, Inc. dba Athens Services (hereinafter “Contractor” or “Athens”) is made and entered so as to be effective as of July 1, 2026. City and Contractor may hereinafter be individually referred to as “Party” or collectively as the “Parties.”

RECITALS
WHEREAS, City and Athens entered that certain Solid Waste Handling Services Agreement effective as of July 1, 2011, and thereafter executed that certain First Amendment to the Solid Waste Handling Services Agreement on July 1, 2019 (collectively, “Agreement”); WHEREAS, City and Contractor are mindful of the provisions of the laws governing the safe collection, transport, recycling, and Disposal of Solid Waste; WHEREAS, City and Contractor further desire to confirm that Contractor has agreed, as part of this Agreement, to provide such services as are necessary or desirable to ensure City complies with the applicable laws, including the requirements of SB 1383; and WHEREAS, the City determines that it is in the best interest of the City to implement the changes pertaining to the provision of services as specified in this Second Amendment.

NOW, THEREFORE, in consideration of the promises and covenants contained herein, the above recitals, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree to amend the Agreement as follows:

TERMS

1. Amendment Definitions. Unless otherwise specified, all capitalized terms in this Amendment shall refer to those defined terms specified in Chapter 5-2, Article 8 (Mandatory Organic Waste Disposal Reduction) of the Redondo Beach Municipal Code (“SB 1383 Ordinance”) and 14 California Code of Regulations Section 18982. In the event of a conflict between a definition in this Amendment and a definition in 14 California Code of Regulations Section 18982, the definition in Section 18982 shall control.

2. References to “Green Waste.” All references to “Green Waste,” “Organics,” and “Organic Waste” in the Agreement shall mean “Organic Waste” as defined in the SB 1383 Ordinance, except references to “Green Waste” in Sections 1.48, 1.63A, and 4.3(c).

3. Limitations to Scope. Upon commencement of exclusive Roll-off Box Service pursuant to Section 4.1.3, Section 4.3.i and 4.3.j of the Agreement will thenceforth be deleted in their entirety and Section 4.3 i will be replaced with the following and Section 4.3.j will no longer be used:
i) Construction and Demolition Waste not collected in a Rolloff Box, Temporary Bin, or Compactor Roll-Off Box; -2-

4. Roll-off; Scope of Franchise. A new Section 4.1.3 is hereby added to the Agreement as follows:

4.1.3 Exclusive Roll-off and Temporary Bin Services
In accordance with Section 4.1.1, City hereby grants to Contractor, and Contractor hereby accepts from City, the contract and privilege, on the terms and conditions set forth herein to the Contractor for the service in the City of Collecting, transporting, handling and disposing of: (i) Solid Waste deposited in Roll-off Boxes, Compactors, or similar Containers, and (ii) temporary Bin Service using Rent-a-Bins or similar Containers provided to Customers upon request.

Notwithstanding the foregoing, the City at the earliest date permissible in compliance with Public Resources Code Section 49520, shall grant the Contractor the exclusive right and privilege to provide the services specified hereunder. If the City has not done so, City shall, no later than July 1, 2026, issue notice concerning exclusivity hereunder in compliance with Public Resources Code Section 49520.

5. Current Classifications; Bundled Service. Sections 5.2, 5.3.1 and 5.3.2 of the Agreement are hereby deleted in their entirety and replaced with the following:

5.3 Classifications for Bundled Collection Services

5.3.1 Default Service Types
The following default service types apply: (i) residential dwellings of three (3) units or less shall receive Cart service by default and (ii) all other Customers shall receive Bin service. Further, Customers shall receive default bundled Collection service at least once per week as follows: (i) Cart service shall include one (1) 96‑gallon Refuse Cart; one (1) 96‑gallon Recycling Cart; and one (1) 96‑gallon Organic Waste Cart, with Customers eligible to request additional Carts for all streams at no additional cost; (ii) Bin service shall include one (1) 3‑cubic‑yard Refuse Bin, one (1) 96‑gallon Recycling Cart; one (1) 64‑gallon Organic Waste Cart (or, as applicable, two (2) 35‑gallon Organic Waste Carts). The foregoing shall apply unless approved for alternative service under Section

5.3.2. 5.3.2 Changes in Classification
Except as otherwise specified in this Agreement and after consultation with the Customer, Contractor shall determine the appropriate service type and Container size, type, frequency, and quantity for each Customer subject to reasonable disapproval of City. If the Contractor’s determination of appropriate service type is disputed by the Customer, the Customer and Contractor shall -3-
submit sufficient evidence to the City in support of their respective position. The Public Works Director will consult with the Customer and Contractor and make a determination within forty-five (45) calendar days for any dispute associated with the initial roll-out of Containers effective July 1, 2026, and thereafter, within fifteen (15) calendar days of receipt of Customer and Contractor’s evidence as to the service type to be provided. If the Public Works Director does not issue a determination within the time provided herein, Contractor’s determination of the appropriate service type shall be deemed approved. Notwithstanding the foregoing, Customer Container size, type, frequency, and quantity must be sufficient to comply with Applicable Law at the appropriate service level and approved rate sheet and such that no Solid Waste is placed outside the Collection Container.

Costs associated with other Container selections are detailed in Appendix E.

6. Overfilled Containers. Section 5.4.5 of the Agreement is deleted in its entirety and replaced with the following:

5.4.5 Overfilled Containers (Except Residential Carts)
Except for Residential Carts, any Container may be considered overfilled if Solid Waste rises above the top of the Container sufficiently that it is likely to result in (i) materials spilling/dislodging during Collection activity by Contractor’s vehicles or (ii) if excess material is placed on top of or around a Container. Bin Customers and Commercial Cart Customers that regularly produce more Solid Waste than their current level of service can accommodate may have their service level increased in accordance with the following procedure:

First Incident in Three Month Period - If more material is placed for Collection than fits in a Bin or Commercial Cart, Contractor shall photograph the overfilled Container, Collect the Solid Waste, and send to the Customer (at both the service and billing addresses) the picture and a letter instructing the Customer that further instances may result in an increase in the level of service. This is considered the first warning (provided photograph is obtained and delivered).

Contractor may not charge the Container Overflow Fee in the Approved Rate Schedule for the first overfill incident.

Second Incident in Three Month Period - Upon the second event of an overfilled Bin or Commercial Cart in a three-month period, Contractor shall photograph the overfilled Container, Collect the Solid Waste, and send to the Customer the picture and a letter instructing that a third incident in that same three-month period may result in an increase in the level of service. This is the second warning. Contractor may charge the Container Overflow Fee in the -4-
Approved Rate Schedule.

Third Incident in Three Month Period - Upon the third event of an overfilled Bin or Commercial Cart in a three-month period, Contractor shall photograph the overfilled Container, Collect the Solid Waste, and send to the Customer the picture and a letter notifying the Customer of a recommended increase in service level, as determined by the Contractor, to accommodate the higher demand for service. The notification letter shall include a statement that the pending change in service may be disputed by notifying the Contractor and City in writing of such dispute within seven days of receipt of the letter. The Contractor shall send a copy of any such notification letter to the City on the same day it is sent to the Customer. Contractor may also charge the Container Overflow Fee in the Approved Rate Schedule.

If a Customer disputes such fee(s) or service change, then Contractor shall temporarily halt the charge and/or increased rate resulting from increasing the Collection Container size or Collection frequency until the dispute is resolved, and Contractor may request a ruling by the Public Works Director to resolve the dispute. During the pendency of any dispute, Contractor shall restore Container size or Collection frequency to the prior levels. A request by Contractor to the Public Works Director to rule on any such dispute must be filed within ten (10) days of Contractor's halting of the fee charge, or increased rate, and must include written documentation and/or photographic evidence of ongoing problems. Within ten (10) days thereafter, the Public Works Director or their designee, shall request a meeting (in person or by phone) with both the Customer and Contractor to resolve the dispute. Following such a meeting, the Public Works Director or their designee, shall rule on the dispute within ten (10) days. If the Public Works Director or their designee rules in favor of the Customer, Contractor must credit the paid fees or rate increases arising from a change in service. If the Public Works Director or their designee rules in favor of Contractor, Contractor may charge Customer any temporarily halted charges and/or increased rates resulting from changes in service.

A list of all Customers assessed Container Overflow Fees will be provided monthly by the Contractor to the City. Upon request, the Contractor will provide the City, within 10 days, all written documentation and/or photographic evidence associated with overfilled Container violations and fees.

7. Roll-off Box Service. Upon commencement of exclusive Roll-off Box Service pursuant to Section 4.1.3, Section 5.4.6 of the Agreement will thenceforth be deleted in its entirety and replaced with the following:

5.4.6 Roll-off Box Service
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The provision of service using Roll-off Boxes will be included under this exclusive franchise, as specified in Section 4.1.3. For the avoidance of doubt, the provision of such service is required for City-owned or controlled facilities without charge as specified in Section 5.15. The provision of services to all other Customers shall be subject to the applicable rates set forth in Appendix E, as adjusted annually by the terms set forth in Appendix B for Roll-off Boxes; provided, however, City Administration fees shall not be charged in connection with such services until Contractor retains an exclusive franchise for such Roll-off Box services, as specified in Section 4.1.3. All applicable Permit fees detailed in RBMC §5-2.112 will continue to be paid until the Contractor retains an exclusive franchise for these services. Notwithstanding any provision in this Agreement to the contrary, if Contractor cannot or does not deliver a temporary Roll-off Box to a Customer within two (2) business days, excluding Saturdays, Sundays and holidays, from the request for service, Customer may, on a one-time basis, request a temporary Roll-off Box from another company that can provide the service.

8. Temporary Bin Service. Section 5.4.7 of the Agreement is hereby deleted in its entirety and replaced with the following:

5.4.7 Temporary Bin Service – “Rent-a-Bin”
Contractor shall provide exclusive (as specified in Section 4.1.3) temporary Bin Service using Rent-a-Bins or similar Containers provided to Customers upon request. Contractor must deliver a temporary Bin to a Customer within twenty-four (24) hours of request (Saturdays, Sundays and holidays excluded).

Notwithstanding any provision in this Agreement to the contrary, if Contractor cannot or does not deliver a temporary Bin within the time specified herein, Customer may, on a one-time basis, request a temporary Bin from another company that can provide the service.

Maximum rates for temporary Bin Service are listed in the Approved Rate Schedule. Per pull fee includes service, transportation, Disposal, delivery and rental for seven days. Contractor may charge a daily rental fee for each day beyond seven days in which a Bin is not serviced, in accordance with the Approved Rate Schedule.

9. Scout Service Rates. Section 5.4.8 of the Agreement is hereby deleted in its entirety and replaced with the following:

5.4.8 Bin Pushout/Scout Service
Contractor may not charge a fee for pushing or rolling Bins to point of Collection.

Contractor may charge a fee for the use of scout vehicles to position Bins for Collection. Use of scout vehicles shall be determined by election of the Customer or as determined to be necessary by the -6-
Contractor to meet service and safety requirements. Disputes over need for scout service shall be subject to the process described in Section 5.3.2. Use of scout vehicles to position Recycling and Organic Waste Bins shall be done without charge to the Customer.

Contractor’s provision of service hereunder shall be subject to the Approved Rate Schedule set forth in Appendix E, as adjusted annually by the terms set forth in Appendix B.

If Contractor must place a Bin in the public right of way to facilitate Collection, Contractor shall not permit the Bin to remain in the public right of way longer than four (4) hours. If the Bin is stored under a chute for Solid Waste Collection, the Bin must be serviced and returned immediately.

10. Elimination of Residential Two-Cart Pilot Collection Program. Section 5.4.11 is hereby deleted in its entirety.

11. Mandatory Recyclables Collection for Residential Bin and Commercial Customers. Section 5.5.3 of the Agreement is hereby deleted in its entirety and replaced with the following:

5.5.3 Recyclables Collection for Residential Bin and
Commercial Customers
Contractor shall provide Recycling Collection service to all Residential Bin and Commercial Customers in accordance with Section 5.3. Recycling Collection programs shall be made available at a minimum for the same materials as included above in Section

5.5.1 for the Residential Cart Customer program. Contractor’s provision of service hereunder shall be subject to the Approved Rate Schedule set forth in Appendix E, as adjusted annually by the terms set forth in Appendix B.

12. Diversion Requirement. Sections 5.5.4 through 5.5.6 of the Agreement, and each subpart therein, are hereby deleted in their entirety and replaced as set forth below. Further, the reference to Section 5.5.6 in Section 11.5 of the Agreement shall be deleted and replaced with “Section 5.5.4.”

5.5.4 Diversion Requirement
During each calendar year of the Term, Contractor shall implement programs reasonably designed to achieve the following diversion requirements: (i) a minimum diversion from Disposal, as specified in Public Resources Code § 41780(a)(2), of all Solid Waste generated in the City, inclusive of Recyclable Materials, Organic Waste, and all other known or typical waste streams generated in the City, including but not limited to self-hauling, hauling by privately contracted landscaping, tree and/or yard service firms, City projects, street sweeping, beaches, hauling by public volunteer activities and special public events, and (ii) a minimum diversion of sixty-five percent (65%) of all Construction and Demolition Waste -7-
collected by Contractor (collectively, the “Diversion Requirements”); provided, Contractor’s obligations hereunder will not extend to any loss, cost, liability, fine, penalty, damage, action, suit, duty, obligation, requirement, nonperformance, or noncompliance relating to, arising or resulting from: (i) acts or omissions constituting the negligence, willful misconduct, material breach of this Agreement, or violation of law on the part of City, its officers or employees in connection with the City’s Diversion Requirements; (ii) the acts or omissions of third parties, including without limitation the negligence, willful misconduct, or violation of law of such third parties; and/or (iii) as limited by Public Resources Code Section 40059.1.

5.5.5 Corrective Action
If City fails to comply with the Diversion Requirement due to Contractor’s failure to implement the Diversion and public education programs provided for in this Agreement, Contractor must submit a corrective action plan to assist City to comply with the Diversion Requirement by March 15th following the year the Diversion Requirement was not met. Contractor’s corrective action plan is subject to approval by the City, which shall not be unreasonably denied, and to be approved by City, must constitute a good faith corrective action plan to allow City to comply with the Diversion Requirement. Implementation of the corrective action plan will be at Contractor’s sole cost and expense. If Contractor fails to submit or implement a corrective action plan acceptable to the City, Contractor may be subject to Liquidated Damages as specified in Section 10.4.B.22.

5.5.6 New Diversion Requirements
If Contractor fails to comply with the Diversion Requirement, and Contractor has implemented all diversion programs required under this Agreement, the City may direct Contractor to modify its programs or implement new diversion programs. Any such
modification of Contractor’s existing diversion programs or addition of new diversion programs done at the City's request shall be subject to Section 5.18 and each applicable subpart therein including where such request is due to or arises from a Change in Law.

13. Organic Waste Collection for Residential Bin and Commercial Customers.

Section 5.6.4 of the Agreement is hereby deleted in its entirety and replaced with the following:

5.6.4 Organic Waste Collection for Residential Bin and
Commercial Customers
Contractor shall provide Organic Waste Collection service to all Residential Bin and Commercial Customers in accordance with Section 5.3. Organic Waste Collection programs shall be made -8-
available for Organic Waste as defined in Section 1.63A and limited by Appendix I.1. Contractor’s provision of service hereunder shall be subject to the Approved Rate Schedule set forth in Appendix E, as adjusted annually by the terms set forth in Appendix B.

14. SB 1383 Program. A new Section 5.6.7 of the Agreement is hereby added to the Agreement as set forth below. Further, Appendix I is also hereby deleted and replaced with a new Appendix I to the Agreement, as provided in Attachment 2 to this Amendment, and incorporated herein by reference.

5.6.7 SB 1383 Program
Contractor’s Collection, transportation, and processing of source separated Refuse, Recyclable Materials, and Organic Waste generated at Customer Premises shall be conducted in accordance with the SB 1383 program specified in Appendix I.

15. Confirmation of No Change to Residential Bulky Waste Collection. For the avoidance of doubt, Section 5.7.1 remains unchanged. Contractor shall continue to provide Bulky Waste Collection service at no additional charge to (i) all Residential Dwelling Units, inclusive of Cart and Bin Residential Customers, and (ii) all Multi-Family Customers. To provide for Bulky Waste Collection for the City’s “live aboard marina community” and Pier tenants, Contractor shall continue to provide Bulky Waste waterside pick-up service twice per year at the Pier at no additional charge to the City.

16. Recordkeeping (Roll-off). Sections 7.2.3(b), 7.3.2(a), 7.3.3(a)-(c), 9.3.1, and Appendix H at Section H.4 of the Agreement are hereby amended to include references to Roll-off Boxes in addition to the existing references to City Roll-off Boxes. In each of these sections, any occurrence of “City Roll-off Box” or “Roll Boxes at City Facilities” is revised to “City Roll-off Box(es) and/or Roll-off Box(es)” so that the Contractor’s reporting obligations and service descriptions encompass Roll-off container services for non-City customers as well as those for the City.

17. Approved Facilities. Sections 8.2, 8.3, and 8.4 of the Agreement are hereby deleted in their entirety and replaced with the following:

8.2 Transportation of Solid Waste to Facilities
Contractor shall transport all Solid Waste that is Collected in the City to a lawfully permitted Transfer Station, MRF, processing Facility, or Disposal Facility. Source separated Organic Waste shall be transported to and processed at an Organic Waste Processing Facility. All other properly deposited Solid Waste shall be transported to a Facility which shall divert materials into Recyclable Materials that can be processed for recovery, and/or a Facility for Solid Waste for Disposal at a landfill. For the avoidance of doubt, Contractor shall not be required to transport source separated Refuse to a MRF or other processing Facility prior to landfilling except to the extent required by Applicable Law.

Contractor shall cooperate with the operator of any Facility it uses with regard to operations therein, including, for example, complying -9-
with directions from the operator to unload Collection vehicles in designated areas, accommodating to maintenance operations and construction of new facilities, cooperating with its Hazardous Waste exclusion program, and so forth. Contractor will assist the City in obtaining invoice tonnage data from the Facility as City may request for audits.

8.3 Facility Selection
Contractor shall determine the Facilities utilized under this Agreement subject to change by City in the event of public health or safety emergencies or as otherwise required by City in accordance with Sections 8.10 and 8.12. The Contractor shall notify the City in writing each year on or before each July 1st to identify all the facilities to which the Contractor will transport Solid Waste. The Contractor will notify the City during the year if there is an addition to the list of facilities used. For those Facilities it operates, Contractor will permit visitation by City upon reasonable advance notice during normal operating hours.

18. Capacity Guarantee. Section 8.6 of the Agreement is hereby deleted in its entirety and replaced with the following:

8.6 Facility Capacity Guarantee
Contractor shall guarantee capacity at Contractor-selected Facilities for all Refuse, Recyclable Materials, Organic Waste, and Construction and Demolition Waste Collected by Contractor during the term of this Agreement.

19. Cart Color and Appearance. Section 9.3.2.C of the Agreement is hereby deleted in its entirety and replaced with the following:

C. Cart Color and Appearance
The Refuse, Recycling and Organic Waste Carts will be
differentiated by color, respectively gray, blue and green. All replacement Carts must match the color currently in distribution.

Contractor may request to be permitted to use an alternative shade when it replaces Refuse, Recycling, and Organic Waste Carts throughout the City; however, City is not obligated to approve any change. The colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation. Color must be approved in advance by the City. Cart and Cart lid colors shall be consistent throughout the City.

20. Roll-off Boxes. Section 9.3.5 of the Agreement is hereby deleted in its entirety and replaced with the following:

9.3.5 Roll-off Boxes
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Contractor shall provide sufficient Roll-off Boxes to meet service demands in the City throughout the Term of the Agreement, except to the extent Contractor is unable to deliver a Roll-off Box as set forth in Section 5.4.6. Contractor will keep all Roll-off Boxes clean, free from graffiti and equipped with reflectors. Contractor shall properly cover all open Roll-off Boxes during transport as required by the State Vehicle Code. City may request Contractor to replace Roll-off Boxes (excluding compactor Roll-off Box) currently in use due to the condition of these Containers.

21. Liquidated Damages (Diversion). Sections 10.4.B.22 and 10.4.B.23 of the Agreement are hereby deleted in their entirety and replaced with the following:
(22) For each business day Contractor fails to submit or implement a corrective action plan acceptable to the City in accordance with Section 5.5.5 of this Agreement:
$25 for each day until the corrective action is approved plus $25 per ton below the tonnage level necessary to satisfy the Diversion Requirement in accordance with Section 5.5.4. (23) Intentionally omitted.

22. Faithful Performance Bond. The value of the Performance Bond required by Section 11.1 shall be increased to the sum of $500,000.

23. Faithful Performance Letter of Credit. Sections 11.2 and 11.4 of the Agreement are hereby deleted in their entirety. In addition, all references to “letter of credit” in Sections 11.5,

13.3.1(E), and Appendix B Section B.1 are hereby deleted from the Agreement.

24. Customer Billing. First paragraph of Section 12.1 of the Agreement, excluding subparts 12.1.1 through 12.1.4, is hereby deleted in its entirety and replaced with the following:

12.1 Customer Billing and Contractor Compensation
City shall pay to the Contractor a monthly payment for the Solid Waste Handling Services provided by the Contractor hereunder to Residential Cart Customers Billed on the property tax roll the "Residential Service Contractor Payment", which shall be computed in accordance with the provisions of this Article and may be adjusted from time to time as provided in this Agreement. Multi-Family Building Customers of four (4) units or less shall be billed by and paid to Contractor in accordance with Section 12.1.3.2. Notwithstanding the foregoing, all Multi-Family Buildings of five (5) or more units and Commercial Customers shall be billed by and paid to Contractor in accordance with Section 12.1.3.1. Compensation described under this Section 12.1 constitutes the entire compensation of the Contractor for the Solid Waste Handling Services. The Contractor waives any right it has or may have at any time during the Term of -11-
this Agreement to seek to have the monthly Residential Service Contractor Payment or other fees increased under any theory of fact or law by any Governmental Body, except other than as provided for in this Agreement.

25. Roll-off Billing. A new Section 12.1.5 is hereby added to the Agreement as follows:

12.1.5 Roll-off Customers Billing
The Contractor shall render a statement (a “Roll-off Service Statement”) to each Service Recipient receiving Roll-off Service from Contractor. Such Roll-off Service Statement shall be provided to Service Recipients no later than thirty (30) days following each service event. Any amounts due to Contractor shall be paid within fifteen (15) days of the date of the Roll-off Billing Statement. The Contractor shall be responsible for determining and maintaining the Service Recipient name, service address, billing address and all other pertinent customer account data. The Contractor affirms that Roll-off Box services provided to Service Recipients are provided at Contractor’s own risk. The City shall in no way be responsible to pay for amounts due from a Service Recipient but unable to be collected by the Contractor. For the avoidance of doubt, all Service Recipients receiving Roll-off Service shall be treated as Commercial Service Recipients for purposes of Section 12.3.

26. Solid Waste Vehicle Road Impact Fee; Encroachment Recovery Fee. Section

12.4.1.4 of the Agreement is hereby deleted in its entirety and replaced with the following:

12.4.1.4 Encroachment Recovery Fee
Contractor shall pay to the City an Encroachment Recovery Fee.

This fee is intended as a charge for Contractor’s unique use and encroachment upon City property and public rights-of-way, and to recover the City’s reasonable costs attributable to the Contractor’s use and encroachment upon City property and public rights-of-way, in connection with the provision of Collection services. Such unique use and recoverable costs include, without limitation: (i) providing parking, fueling, and maintenance areas in the City’s yard for three street sweepers; (ii) encroachment into the public right of way by Carts, Bins, and Roll-off Boxes staged for Collection services; and (iii) loss of parking meter revenue where such encroachments preclude the Collection of parking meter revenue.

The payment amount for the Encroachment Recovery Fee shall be calculated by the City and provided to the Contractor no later than six (6) months after the effective date of this Second Amendment and shall be retroactive to the effective date of this Second Amendment. Each July 1 thereafter, the Encroachment Recovery -12-
Fee shall be adjusted by the percentage change in the average annual CPI Less Food and Energy for the calendar year ended the previous December over the average annual CPI Less Food and Energy for the preceding year. Contractor rates as approved in Appendix E are inclusive of the Encroachment Recovery Fee, which shall not be additionally or separately billed to Customers or itemized on any Customer billing. In no event shall the total Encroachment Recovery Fee amount paid by the Contractor exceed the amount that would have been payable under former Section 12.4.1.4, subject to the annual July 1 adjustment described herein.

27. Events of Default (Diversion). Section 13.3.1.Q of the Agreement is hereby deleted in its entirety and replaced with the following:
(Q) Failure to Meet Diversion Goals. Contractor fails to achieve City’s Diversion Requirement, as set forth in Section 5.5.4 of this Agreement, for two consecutive calendar years, beginning calendar year 2026.

28. Term of the Agreement. Sections 14.1 and 14.2 are hereby deleted in their entirety and replaced with the following:

14.1 Term of Agreement
The term of this Agreement (the “Term”) shall expire June 30, 2036, subject to an extension as provided in Section 14.2 below. Nothing in this Section 14.1 shall be construed as limiting City’s right to terminate this Agreement for cause pursuant to Article XIII above.

14.2 City’s Option to Extend Term
Contractor may request up to two, five (5) year extensions to the Term, and at City’s sole option, City may grant Contractor’s request to extend the Term. Under no circumstances will City be obligated to extend the Term. Contractor must request the first five (5) year extension by June 30, 2034 in order to be eligible for the first extension, and the second by June 30, 2039 in order to be eligible for the second extension. City shall retain the ability to extend the Term of the Agreement per this section subject to the written agreement of Contractor.

29. Modification to Appendix B Methodology. Table B.4.2 of Appendix B is hereby modified to delete the “Waste to Energy” cost category and henceforth the weighted percent for the “Waste to Energy” cost category is assigned to the “Disposal” category.

30. Approved Rate Schedule. Appendix E to the Agreement is hereby deleted and replaced in its entirety with a new Appendix E as provided in Attachment 1 to this Amendment, and incorporated herein by reference.

31. Due Execution. The person(s) executing this Amendment on behalf of a Party hereto warrant(s) that (i) such Party is duly organized and existing; (ii) such person(s) are duly -13-
authorized to execute and deliver this Amendment on behalf of said Party; (iii) by so executing this Amendment, such Party is formally bound to the provisions of this Amendment; and (iv) entering into this Amendment does not violate any provision of any other agreement to which said Party is bound.

32. Entire Amendment. This Amendment contains the entire agreement and understanding between the Parties with respect to the subject matter of this Amendment and supersedes any and all prior or contemporaneous oral and written representations, warranties, agreements, and understandings between the Parties concerning the subject matter of this Amendment.

33. Full Force and Effect. Other than as set forth in this Amendment, the terms of the Agreement shall remain unchanged and in full force and effect. In the event of any conflict between the Agreement and this Amendment, this Amendment shall apply.

34. Severability. If any term or provision of this Amendment or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to the extent necessary to, cure such invalidity or unenforceability, and shall be enforceable in its amended form. In such event, the remainder of this Amendment, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected, and each term and provision of this Amendment shall be valid and be enforced to the fullest extent permitted by law.

35. Counterparts. This Amendment may be executed in counterparts, each of which shall be considered an original.
[Signature page follows]
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IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first set forth below.

CITY OF REDONDO BEACH ARAKELIAN ENTERPRISES, INC., a
California corporation
James A. Light
Mayor
Ron Arakelian III
Executive Officer
Date
ATTEST:

Date
Eleanor Manzano
City Clerk
Adam Arakelian
Executive Officer
Date Date
APPROVED AS TO FORM:
________________________________
Joy A. Ford
City Attorney
_____________________________
Date
5/19/2026 | 10:20 AM PDT
5/19/2026 | 10:24 AM PDT
-15-
[Amendment Attachment 1]
Appendix E
Approved Rate Schedule
404695038.1
[Amendment Attachment 1]
Appendix B
Table B.4.2- Cost Components for Rate Adjustment Indices Cost Component
Category
Initial
Weightings
(Cart/Bin)
For 7/1/2026
Adjustment
Initial
Weightings
(Roll-off)
For 7/1/2026
Adjustment
Rate Adjustment Factor
Labor 27.2% 76.92%
Change in the highest-level rate for the "Driver A/8"
Classification to be in effect as of the date the new
rates go into effect (July 1st) under the Agreement
between local haulers and Package and General
Utility Drivers Local Union 396, International (1)
Fuel 2.14% 7.94% Producer Price Index WPU 0531, Fuels and related products and power, natural gas
Equipment 8.68% 0.00% Producer Price Index, PCU336120336120, Heavy duty truck manufacturing
Disposal/Green
Waste 58.44% 0.00%
Consumer Price Index for All Urban Consumers
(CUURA421 SAO), Los Angeles -Long BeachAnaheim, CA, all items, capped at 5% (increases over 5% roll to subsequent years)
All Other 3.52% 15.14%
Consumer Price Index for All Urban Consumers
(CUUROOOOSAOL 1 E), U.S. City average, all
items less food and energy index
Total 100% 100%
404695038.1
Appendix E
Approved Rate Schedule

1. Bundled Rates
As of July 1, 2026 all Customers will receive Bundled Service as outlined in Section 5.3 of the Agreement.
• Single-family and Multi-Family Units (4 units or less) using Carts will be billed at Residential Cart rate.
• Multi-Family Units (4 units or less) using Bins will be billed at Multi-Family with 4 Units or Less - Residential Bin Refuse Collection Net Rate Schedule
• All other Customers will be billed at Commercial & Multi-Family With 5 Units Or More - Bin Refuse Collection Net Rate Schedule
The bundled rate schedules are set forth in Tables A, B and C below for each “Classification.”

Contractor, after consultation with the Customer per Section 5.3.2, may adjust the foregoing default service level.

The applicable bundled rate is determined by the service level selected.

If the Customer elects to, or the Contractor recommends, increase the level of service for Recycling and/or Organic service beyond the default levels specified in Section 5.3 of the Agreement, the applicable additional cost shall be as set forth in Table B (Recycling) or Table C (Organics), as applicable.

If the Customer adds additional Containers in lieu of the default included Container, the rate associated with the included container shall be credited to the Customer, and the Customer shall pay the net rate reflecting the upgraded service level as shown in the applicable table.

In order to comply with all CalRecycle regulations and the Redondo Beach Municipal Code (“RBMC”), Customers are required to receive trash, Recycling and Organics service. If a Commercial Customer receives a waiver as per RBMC, that Customer may receive a credit of 80% of the Organics service charge.

2. Bin Scout Service
The Bin Scout Fee is a monthly rate per trash Bin and per frequency. The Bin Scout Fee will apply to the Collection of trash Bins only. The Bin Scout Fee will not be applied to Containers (Carts or Bins) in other waste streams. The Bin Scout Fee is subject to rate adjustments outlined in Exhibit B. 404695038.1
City of Redondo Beach - Annual Rate Adjustment
Residential Cart Service Collection Net* Rate Schedule
* (Net Rates Below Do Not Include City Fees)
Effective July 1, 2026

RESIDENTIAL CART SERVICE NET RATE
Residential Cart Service Net Rate - unlimited refuse, recycling, and green waste $ 29.86 Push-out/Push-back Service $ 9.98
Additional Cart Exchange - above once every six months $ 50.42 Optional HHW Door-To-Door Collection Program (if requested by City) - to be collected in addition to residential cart service rate for residential cart customers and to the per unit recycling collection fee for multi-family bin customers $ 1.24
404695038.1
City of Redondo Beach - Annual Rate Adjustment
Multi-Family with 4 Units or Less - Residential Bin Refuse Collection Net Rate Schedule (Net Rates Below Do Not Include City Fees)
Effective July 1, 2026
Notes: X means collection frequency per week, WK means week.

In addition to the base rates per the table above, the following monthly charges will be applied:

Recycling Service Charge: $3.99 per unit.

City Fees: Administration $0.99 per unit, Household Hazardous Waste $0.91 per unit, and 4.25% of base rate for AB 939.

A. BUNDLED SERVICE
BIN SIZE 1X WK 2X WK 3X WK 4X WK 5X WK 6X WK 7X WK Extra 1 Cubic Yard Solid Waste Bin
$ 150.56 $ 260.66 $ 370.77 $ 458.44 $ 563.01 $ 667.63 $ 772.19 $ 131.99

1.5 Cubic Yard Solid Waste Bin
$ 154.65 $ 268.57 $ 382.46 $ 496.39 $ 610.23 $ 724.15 $ 838.10 $ 131.99 2 Cubic Yard Solid Waste Bin
$ 171.30 $ 301.02 $ 430.80 $ 556.16 $ 670.66 $ 785.07 $ 903.93 $ 131.99 3 Cubic Yard Solid Waste Bin
$ 192.03 $ 341.42 $ 490.76 $ 623.00 $ 751.76 $ 885.43 $ 1,048.75 $ 131.99 4 Cubic Yard Solid Waste Bin
$ 212.69 $ 381.73 $ 538.17 $ 678.80 $ 836.28 $ 983.65 $ 1,150.42 $ 131.99 6 Cubic Yard Solid Waste Bin
$ 254.13 $ 462.59 $ 639.11 $ 819.95 $ 967.21 $ 1,147.13 $ 1,314.04 $ 131.99 3 Cubic Yard Solid Waste Compactor
$ 290.25 $ 535.40 $ 780.65 $ 1,025.87 $ 1,271.11 $ 1,516.37 $ 1,761.58 $ 273.23 4 Cubic Yard Solid Waste Compactor
$ 323.86 $ 598.53 $ 873.13 $ 1,147.83 $ 1,422.48 $ 1,697.15 $ 1,971.76 $ 273.23 Locking Lids(Optional)
$ 12.48 $ 20.02 $ 27.53 $ 35.02 $ 42.49 $ 50.01 $ 57.47 $ - Bin Scout Service (Optional)
$ 32.29 (monthly rate per trash bin and per frequency)
Recycling Service (Required) $ 3.99 per unit for Recyclable Collection from Multi-family bin customers (required) B. ADDITIONAL RECYCLING CONTAINERS
BIN SIZE 1X WK 2X WK 3X WK 4X WK 5X WK 6X WK 7X WK Extra Commercial Cart(96G)
$ 41.70 $ 82.53 $ 123.36 $ 164.21 $ 205.04 $ 245.88 $ 286.71 $ 131.99 1 Cubic Yard Recycle Waste Bin
$ 52.45 $ 99.47 $ 146.51 $ 193.54 $ 240.59 $ 287.63 $ 334.65 $ 131.99

1.5 Cubic Yard Recycle Waste Bin
$ 59.05 $ 112.29 $ 165.52 $ 218.76 $ 271.99 $ 325.22 $ 378.46 $ 131.99 2 Cubic Yard Recycle Waste Bin
$ 65.78 $ 125.21 $ 184.64 $ 244.08 $ 303.51 $ 362.94 $ 422.38 $ 131.99 3 Cubic Yard Recycle Waste Bin
$ 78.83 $ 150.66 $ 222.50 $ 294.31 $ 366.14 $ 437.97 $ 509.80 $ 131.99 4 Cubic Yard Recycle Waste Bin
$ 92.25 $ 176.47 $ 260.71 $ 344.92 $ 429.15 $ 513.38 $ 597.60 $ 131.99 6 Cubic Yard Recycle Waste Bin
$ 120.55 $ 229.57 $ 338.59 $ 447.62 $ 556.62 $ 665.65 $ 774.66 $ 131.99 3 Cubic Yard Recycle Waste Compactor
$ 197.33 $ 375.63 $ 553.93 $ 732.22 $ 910.52 $ 1,088.82 $ 1,267.11 $ 273.23 4 Cubic Yard Recycle Waste Compactor
$ 236.47 $ 451.96 $ 667.46 $ 882.94 $ 1,098.43 $ 1,313.91 $ 1,529.41 $ 273.23 404695038.1
C. ADDITIONAL ORGANICS CONTAINERS
BIN SIZE 1X WK 2X WK 3X WK 4X WK 5X WK 6X WK 7X WK Extra 35 or 64 Gallon Organics Cart
$ 34.76 $ 68.85 $ 102.92 $ 137.01 $ 171.09 $ 205.18 $ 239.27 $ 131.99 96 Gallon Organics Cart
$ 36.68 $ 72.62 $ 108.56 $ 144.51 $ 180.46 $ 216.39 $ 252.33 $ 131.99 404695038.1
City of Redondo Beach - Annual Rate Adjustment
Commercial & Multi-Family With 5 Units Or More - Bin Refuse Collection Net Rate Schedule
(Net Rates Below Do Not Include City Fees)
Effective July 1, 2026
Notes: X means collection frequency per week, WK means week.

In addition to the base rates per the table above, the following monthly charges are applied:

City Fees: 9.15% of base rate for Administration and 4.25% of base rate for AB 939.

A. BUNDLED SERVICE
BIN SIZE 1X WK 2X WK 3X WK 4X WK 5X WK 6X WK 7X WK Extra Commercial Cart(96G) $ 174.06 $ 335.06 $ 496.25 $ 657.30 $ 818.41 $ 979.45 $ 1,140.50 $ 178.36 1 Cubic Yard Solid Waste Bin
$ 213.17 $ 382.74 $ 552.38 $ 687.50 $ 848.60 $ 1,009.71 $ 1,170.80 $ 178.36

1.5 Cubic Yard Solid Waste Bin
$ 219.42 $ 394.86 $ 570.40 $ 745.87 $ 921.38 $ 1,096.80 $ 1,272.32 $ 178.36 2 Cubic Yard Solid Waste Bin
$ 245.14 $ 444.99 $ 644.90 $ 837.98 $ 1,014.35 $ 1,190.68 $ 1,373.81 $ 178.36 3 Cubic Yard Solid Waste Bin
$ 277.02 $ 507.16 $ 737.30 $ 940.99 $ 1,139.28 $ 1,345.31 $ 1,596.85 $ 178.36 4 Cubic Yard Solid Waste Bin
$ 308.93 $ 569.34 $ 810.34 $ 1,026.99 $ 1,269.60 $ 1,496.55 $ 1,753.49 $ 178.36 6 Cubic Yard Solid Waste Bin
$ 372.75 $ 693.79 $ 965.85 $ 1,247.68 $ 1,471.30 $ 1,748.47 $ 2,005.55 $ 178.36 2 Cubic Yard Solid Waste Compactor
$ 264.91 $ 485.81 $ 706.74 $ 927.64 $ 1,148.63 $ 1,369.55 $ 1,590.49 $ 369.23 3 Cubic Yard Solid Waste Compactor
$ 380.01 $ 711.34 $ 1,042.73 $ 1,374.08 $ 1,705.56 $ 2,036.96 $ 2,368.34 $ 369.23 4 Cubic Yard Solid Waste Compactor
$ 425.46 $ 796.61 $ 1,167.73 $ 1,538.92 $ 1,910.06 $ 2,281.26 $ 2,652.37 $ 369.23 Locking Lids(Optional)
$ 12.48 $ 20.02 $ 27.53 $ 35.02 $ 42.49 $ 50.01 $ 57.47 $ - Bin Scout Service (Optional)
$ 32.29 (Monthly rate per trash bin and per frequency)
B. ADDITIONAL RECYCLING CONTAINERS
BIN SIZE 1X WK 2X WK 3X WK 4X WK 5X WK 6X WK 7X WK Extra Commercial Cart(96G) $ 64.21 $ 127.13 $ 190.02 $ 252.92 $ 315.84 $ 378.73 $ 441.63 $ 178.36 1 Cubic Yard Recycle Waste Bin
$ 80.77 $ 153.23 $ 225.69 $ 298.13 $ 370.59 $ 443.03 $ 515.48 $ 178.36

1.5 Cubic Yard Recycle Waste Bin
$ 90.97 $ 172.95 $ 254.95 $ 336.96 $ 418.95 $ 500.96 $ 582.96 $ 178.36 2 Cubic Yard Recycle Waste Bin
$ 101.31 $ 192.86 $ 284.42 $ 375.96 $ 467.50 $ 559.05 $ 650.59 $ 178.36 3 Cubic Yard Recycle Waste Bin
$ 121.41 $ 232.06 $ 342.71 $ 453.33 $ 563.98 $ 674.62 $ 785.27 $ 178.36 4 Cubic Yard Recycle Waste Bin
$ 142.09 $ 271.83 $ 401.57 $ 531.30 $ 661.03 $ 790.77 $ 920.50 $ 178.36 6 Cubic Yard Recycle Waste Bin
$ 185.69 $ 353.62 $ 521.55 $ 689.47 $ 857.39 $ 1,025.31 $ 1,193.24 $ 178.36 2 Cubic Yard Recycle Waste Compactor
$ 303.96 $ 578.59 $ 853.24 $ 1,127.87 $ 1,402.50 $ 1,677.15 $ 1,951.78 $ 369.23 3 Cubic Yard Recycle Waste Compactor
$ 364.26 $ 696.18 $ 1,028.09 $ 1,360.01 $ 1,691.93 $ 2,023.87 $ 2,355.79 $ 369.23 4 Cubic Yard Recycle Waste Compactor
$ 426.27 $ 815.48 $ 1,204.69 $ 1,593.89 $ 1,983.09 $ 2,372.30 $ 2,761.51 $ 369.23 6 Cubic Yard Recycle Waste Compactor
$ 557.08 $ 1,060.85 $ 1,564.62 $ 2,068.40 $ 2,572.16 $ 3,075.94 $ 3,579.71 $ 369.23 C. ADDITIONAL ORGANICS CONTAINERS
BIN SIZE 1X WK 2X WK 3X WK 4X WK 5X WK 6X WK 7X WK Extra 404695038.1
35 or 64 Gallon Organics Cart $ 34.76 $ 68.85 $ 102.92 $ 137.01 $ 171.09 $ 205.18 $ 239.27 $ 178.36 96 Gallon Organics Cart
$ 36.68 $ 72.62 $ 108.56 $ 144.51 $ 180.46 $ 216.39 $ 252.33 $ 178.36 404695038.1
City of Redondo Beach - Annual Rate Adjustment
Commercial Additional Services Collection Net Rate Schedule (Net Rates Below Do Not Include City Fees)
Effective July 1, 2026
**No Multi-Family Unit will be assessed Bulky Item Waste Pick-Up regardless of Classification in 5.3.1
ADDITIONAL BIN and OTHER FEES RATE
3 Yard Temp Bin $287.20 / dump
3YDT / rental per day beyond 7 days
$27.15 / day
Com**Bulky Waste Pick-up
$85.02/item
Bin Re-delivery Fee (if bins are pulled
for non-payment) $153.07 / bin
Container Cleaning (over once per year)
$153.07 / cleaning
Container Overflow Fee (per section

5.4.5 of Agreement) $102.04 / event
Com HHW Collection
$85.02 / item
-9-
404695038.1
City of Redondo Beach - Annual Rate Adjustment
Other Refuse Collection Net Rate Schedule
(Net Rates Below Do Not Include City Fees)
Effective July 1, 2026

OTHER FEES RATE
Pier Compactor / pull
$207.38 / dump
Pier Compactor / ton
$91.51 / ton
Pier Compactor / ton (Organics)
$175 / ton
Rolloff / haul $ 450/ haul
Rolloff disposal/ ton Posted gate rate/ ton
Container Contamination Clean-Up Fee
(all sizes, Recycling and Organics) $70.12 / Occurrence Return Trip Charge
$92.74 / trip
Emergency Service Rate
$155.61 / hour
HHW Event (per Appendix D of
Agreement) $51,135.76 / event
-10- 404695038.1
[Amendment Attachment 2]
Appendix I
SB 1383 Program

1. General. As provided herein, Contractor shall (i) provide account site visits and reviews, and the tracking thereof; (ii) support City public education and outreach efforts; (iii) meet with CalRecycle staff; (iv) provide Organic Waste tonnage data to both City and CalRecycle; and (v) provide Organic Waste Collection services in connection with the materials specified in Appendix I.1 and subject to change in compliance with applicable law.

2. Changes in Default Service. The default service requirements of Organic Waste Collection are specified in Section 5.3.1 of the Agreement. Any adjustments to the default service will be conducted pursuant to Section 5.3.2 with charges specified in Exhibit E.

3. Education and Outreach.

A. Contractor shall provide, and City must approve, education and outreach activities and to create and disseminate educational materials to Customers in compliance with 14 CCR Section 18985.1. In accordance with the foregoing, Contractor will provide the education information required in 14 CCR Section 18985.1 by providing regularly scheduled notices, education materials, billing inserts, or other information disseminated to Customers.

B. The Contractor will provide Customer outreach coordinators to assist Customers and the City with meeting the requirements of SB1383 and other diversion programs.

Coordinators shall be available to visit Multi-Family and Commercial Customers, civic groups, school assemblies and other public meetings to promote and explain Recycling and Organics programs, and participate in demonstrations and civic events.

C. Contractor shall maintain records of its education and outreach activities and provide this information in the Athens Dashboard portal and upon request to City. As outlined in this Section, City will cooperate with Contractor with respect to the education and outreach activities and creation and dissemination of educational materials hereunder.

4. Reporting. Contractor shall prepare and maintain the records identified in 14 CCR Section 18995.2(f), arising from the Organic Waste services performed by Contractor and assist City in reporting such information. Contractor will provide an annual report of the following: (i) the tons of Organic Waste Collected by route, with map of routes; (ii) the total number of Generators that receive each type of Organic Waste Collection service provided by Contractor; (iii) the number of Organic Waste Collection Containers distributed by size and Customer type; and (iv) annual totals of Organic Waste processed including Facility name and location. On a monthly basis the Contractor will report: i) details of route reviews conducted; ii) warning notices issued for contaminated Containers; iii) a summary of complaints and resolutions including changes to services or charges assessed; and iv) a summary of outreach activities and results of outreach related to SB1383 compliance. Contractor shall provide other records to City within ten (10) business days of a request. Contractor shall provide City with business hours access to and any necessary training for use of a Contractor-hosted records systems in order to validate Contractor performance in accordance with the Organic Waste program specified in this Appendix. -11- 404695038.1

5. Recovered Organic Waste Products.

A. Beginning July 1, 2026, Contractor shall procure and provide to, or cause to procure and provide, City sufficient quantities of compost, mulch, and/or California-derived Renewable Natural Gas ("CRNG") to meet the City's required annual per capita procurement of products produced in accordance with 14 CCR Section 18993. Contractor may meet this obligation by one or more of the following activities, as determined by Contractor: (i) the use of CRNG in collection vehicles, provided such CRNG complies with 14 CCR Section 18993.1; and/or (ii) sufficient tons of Compost or mulch. Further, Contractor may utilize other methods approved by CalRecycle or applicable law to ensure that the City achieves the procurement requirements.

B. Contractor shall comply with the recordkeeping and verification requirements of 14 CCR Section 18993.1 and 14 CCR Section 18993.2, as applicable, including but not limited to, records sufficient to evidence the procurement of recovered Organic Waste products made by Contractor on behalf of City. City shall notify Contractor as soon as practicable of any third-party request under the California Public Records Act (excluding any request by CalRecycle) to review or copy documents provided to City in connection with or related to this Section 5.

6. Containers.

A. Container Color. Notwithstanding any provision in this Agreement to the contrary, all Containers provided by Contractor to Customers must comply with the color requirements specified in 14 CCR Section 18984.7 under the timelines and requirements of such section. Containers shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation, and the lids and bodies shall be uniform for each Container type, as follows: (i) Refuse Container bodies and lids shall be black or gray; (ii) Recycling Container bodies and/ lids shall be blue; and (iii) Organic Waste Container bodies and lids shall be green. Hardware such as hinges and wheels on the Containers may be a different color than specified herein.

B. Container Labeling. Contractor shall, in accordance with 14 CCR Section 18984.8, imprint or place a label on the body or lid of each new Container that has been provided by Contractor to a Customer that includes language or graphic images, or both, indicating the primary materials accepted and the primary materials prohibited in that Container. Imprints or labels shall clearly indicate items that are Prohibited Container Contaminants for each Container. Existing Containers shall be furnished with labeling in accordance with 14 CCR Section 18984.8.

C. Container Cleaning. Notwithstanding any other provision of the Agreement to the contrary, the Commercial Organic Waste Recycling Carts will be cleaned or exchanged by Contractor, upon request of Customer, once annually at no additional charge. Customer may request additional cleaning as needed to reduce odor and vector issues subject to the rates in Appendix E.

7. Route Reviews and Waste Evaluations. In accordance with 14 CCR Section 18984.5, Contractor shall conduct route reviews unless Contractor elects to conduct waste evaluations. If Contractor elects to conduct waste evaluations, Contractor shall provide City advance written notice. No charges shall be assessed to Customers associated with findings of Route Reviews.

A. Route Reviews. If Contractor elects to perform route reviews, commencing July 1, 2026, Contractor shall conduct route reviews for Prohibited Container Contaminants consistent with and as defined in 14 CCR Section 18984.5(b) in a manner deemed safe by -12- 404695038.1
Contractor such that all hauler routes are reviewed annually. Containers may be randomly selected along hauler routes. Contractor shall develop a hauler review methodology in compliance with 14 CCR Section 18984.5(b) and submit it to City not more than annually upon the request of City.

B. Waste Evaluations. If Contractor elects to perform waste evaluations, at least twice per year, in two distinct seasons of the year, Contractor shall conduct waste characterizations at Facilities owned or operated by Contractor, pursuant to 14 CCR Section 18984.5(c). City maintains the right to observe, or hire a third party to observe, the waste evaluations.

8. Collection Routes. To the extent permitted by Applicable Law, Contractor may Collect source separated Organic Waste from multiple cities within one Organic Waste route and, if so, will report to City source-separated Organic Waste tonnage among the cities by volume or other metric required by Applicable Law.

9. Ongoing Contamination Protocols and Container Clean-Up Fees. In order to discourage Prohibited Container Contaminants, Contractor shall implement the protocols, as specified herein.

A. First Contamination Event. Upon the first discovery of Prohibited Container Contaminants within a given calendar year starting January 1, Contractor will Collect the contaminated waste if safe to do so, treat the waste as Refuse for handling and billing purposes, and affix a “Contamination Notice” to any Container with contaminated waste. Contractor shall also report issuance of any such notices to City. The Contamination Notice will contain instructions on the proper procedures for sorting waste, and Contractor must notify the Customer by phone, by U.S. mail, by email, in person, or by tag, of the following: (i) for the third and every subsequent discovery of Prohibited Container Contaminants, the Customer may be charged a contamination “Clean-up Fee” for each contaminated Container, and (ii) for the fifth and subsequent discovery of Prohibited Container Contaminants, the Customer may be charged a contamination “Clean-up Fee” for each contaminated Container and Contractor may increase the size of the Customer’s Container or require an additional Container(s). Contractor must also contact the Customer by phone, by U.S. mail, by email, in person, or by tag, to ensure that the Customer has the appropriate level of service for proper Collection of waste.

B. Second Contamination Event. Upon the second discovery of Prohibited Container Contaminants within a given calendar year starting January 1, the protocols specified for a first contamination event shall apply.

C. Third Contamination Event. Upon the third discovery of Prohibited Container Contaminants within a given calendar year starting January 1, Contractor will Collect the waste in the contaminated Container(s) if safe to do so, treat the waste as Refuse for handling and billing purposes, and affix a Contamination Notice to the contaminated Container. Contractor may also elect to charge the contamination “Clean-up Fee” for the contamination event. For any assessed contamination “Clean-up Fee,” Contractor must provide digital/visual documentation of Contractor’s discovery of Prohibited Container Contaminants to Customer and City.

D. Fourth Contamination Event. Upon the fourth discovery of Contamination within a given calendar year starting January 1, the protocols specified for a third contamination event shall apply.
-13- 404695038.1
E. Five or More Contamination Events. Upon each of the fifth and any subsequent discoveries of Prohibited Container Contaminants within a given calendar year starting January 1, Contractor will Collect the waste in the contaminated Container(s) if safe to do so, treat the waste as Refuse for handling and billing purposes, and charge a contamination “Clean-up Fee” for each event. For any assessed contamination “Clean-up Fee,” Contractor must provide digital/visual documentation of Contractor’s discovery of Prohibited Container Contaminants to Customer and City. Upon five (5) business days’ notice to City and the Customer, Contractor may (i) increase the size of the Customer’s Container, require additional Containers to accommodate excessive Prohibited Container Contaminants, or increase Collection frequency; (ii) impose a contamination “Clean-up Fee” per discovery of Contamination until the Customer has demonstrated Prohibited Container Contaminants are not in Containers for a period of three (3) consecutive months; and/or (iii) provide notice that Contractor has recommended that City commence Notice of Violation enforcement. City will consult with Contractor and consider, and pursue as applicable, appropriate legal remedies against offending Customers in order to secure discontinuance of the Prohibited Container Contaminants.

F. Disputes. If a Customer disputes, in writing, an assessment of a contamination “Clean-up Fee” within thirty (30) days of the assessment, Contractor will temporarily halt any such assessment and Contractor may request a ruling by the Public Works Director, or their designee, to resolve the dispute. A request by Contractor to the Public Works Director to rule on any such dispute must be filed within ten (10) business days of a Customer’s written dispute, and Contractor must include written documentation and digital/visual evidence of ongoing overall problems. Upon receipt of such documentation, the Public Works Director, or their designee, will rule on the dispute within ten (10) business days, and the Public Works Director’s, or their designee’s, decision on resolving the dispute between Customer and Contractor will be final.

G. Contamination Event Reset. For any Customer that has been charged a contamination “Clean-up Fee,” has paid the contamination “Clean-up Fee,” and has not had any Contamination Events for a period of ninety (90) consecutive days following the last Contamination Event, Contractor will reset the calculation of Contamination Events, so that if there is a subsequent Contamination Event, it shall be considered the First Contamination Event, the next as a Second Contamination Event, etc. Customers shall be limited to one (1) Contamination Event Reset per calendar year.

10. Edible Food Recovery.

A. Identification of Commercial Edible Food Generators. No later than July 1, 2026 and annually every January 1 thereafter, Contractor shall assist City in identifying Customers that meet the definition of Tier One or Tier Two Commercial Edible Food Generator and provide to City a list of such Customers, which shall include the following information: Customer name, service address, contact information, Tier One or Tier Two classification, and type of business. Contractor will coordinate food rescue and donation efforts with each Customer deemed to generate Organic Waste as required by CalRecycle. Contractor will work with food generating establishments to capture any currently unreported donation efforts, provide educational outreach material to food service sales representatives and food generating establishments, and add information on food non-profits on the Contractor’s City-dedicated Dashboard and website.

B. Identification of Edible Food Recovery Organizations. To support City’s efforts to promote Edible Food Recovery programs, Contractor shall maintain, and update annually each January 1, a list of Food Recovery Organizations and Food Recovery Services and information -14- 404695038.1
about Edible Food Recovery on Contractor’s website, which is specific to City and shall provide a link to information about City’s Edible Food Recovery programs on Contractor’s website.

C. Maintain and Promote Listings. Contractor shall cooperate with and assist City with the distribution of information to Commercial Edible Food Generators regarding City’s Edible Food Recovery programs.

11. Waivers. City may provide Contractor waivers as follows: (a) in the event a Customer receives a waiver from the City in accordance with Section 5-2.805 of the Municipal Code; (b) upon Contractor’s request, in the event of a disaster, City may grant Contractor a waiver of some or all discarded materials Collection requirements under this Agreement and 14 CCR, Division 7, Chapter 12, Article 3 in the disaster-affected areas for the duration of the waiver, provided that such waiver has been approved by CalRecycle; (c) Contractor may, but is not required to, separate or recover Organic Waste that City removes from homeless encampments and illegal Disposal sites as part of an abatement activity to protect public health and safety; and/or (d) Contractor may dispose of rather than process specific types of Organic Waste and/or Recyclable Materials that are subject to quarantine and meet the requirements described in 14 CCR Section 18984.13(d) for a period of time specified by City or until City provides notice that the quarantine has been removed and directs Contractor to transport the materials to Facilities designated by Contractor for such material.

12. Organic Waste Ordinance; Enforcement. City will enforce its SB 1383 Ordinance in accordance with Section 5-2.813 of the RBMC. . Contractor shall not be liable for any claims, actions, obligations, demands, damages, liabilities, costs, or expenses for any damages or injuries caused by or arising from (i) the failure of Customers to accept Organic Waste Collection services, or (ii) the suspension or termination of services upon nonpayment in whole or in part by Customers, provided Contractor reports such instances of noncompliance or nonpayment to City for code enforcement.

13. SB 1383 Program; Guarantee. Contractor will provide staff, labor, and materials to assist City with its compliance with SB 1383, as specified in this Appendix I. Upon notice from City, Contractor shall be deemed in material breach of the Agreement subject to at least ninety (90) days to cure, in the event CalRecycle determines that the requirements of SB 1383 have not been satisfied: (i) due to the sole failure of Contractor to meet its obligations under this Agreement with respect to the waste stream Collected by Contractor; or, (ii) due to Contractor’s delay in providing information required under this Agreement that prevents City from submitting reports to CalRecycle in a timely manner (each, a “Noncompliance Event”). Upon any Noncompliance Event, City shall be entitled to the reimbursement of penalties and/or fines assessed by CalRecycle against City to the extent the penalties and/or fines arise from the Noncompliance Event. Notwithstanding other provisions of this Agreement, Contractor’s obligations hereunder shall be limited by Public Resources Code Section 40059.1.
-15- 404695038.1
APPENDIX I.1

LIST OF ACCEPTABLE ORGANIC WASTE MATERIALS
(The list of acceptable organic waste materials will be updated from time to time with agreement of City and Contractor to maintain compliance with all applicable laws and regulations, including CalRecycle regulations.)

GREEN WASTE
• Flower and hedge trimmings
• Grass clippings
• Leaves and branches
• Weeds
• Lumber*
• Scrap wood*
• Plywood*
*Not painted or treated

UNACCEPTED ITEMS
• All plastics
• Cacti, succulents, and yucca
• Compostable plastics (bioplastics)
• Coffee cups and pods
• Fats, oils, and grease
• Food stickers (please remove from items)
• Gloves
• Hard shells (clams, mussels, oysters)
• Medication
• Palm fronds
• Paper napkins with cleaning chemicals
• Paper towels with cleaning chemicals
• Parchment and wax paper
• Pet waste
• Rocks and soil
• Rubber bands and twist ties
• Tea bags
• Textiles
• Tissues and wet wipes

FOOD SCRAPS
• Bread, rice, and pasta
• Cheese and dairy
• Coffee grounds and filters
• Fruits and vegetables
• Flowers and herbs
• Meat, bones, and poultry
• Seafood and soft shells
• Pet food (nonmedicated)
FOOD-SOILED PAPER*
• Food-stained paper
• Paper egg cartons
• Paper napkins
• kitchen paper towels
• Pizza boxes
• Plates
• To-go boxes (no coating)
• Wood and fiber-based utensils
*Must be 100% fiber-based. No materials with -
plastic, wax, or bioplastic coating, liner, or lamina

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER(S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A : NAIC #
NAME: CONTACT
(A/C, No): FAX
E-MAIL ADDRESS:

PRODUCER
(A/C, No, Ext): PHONE

INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

OTHER:
(Per accident)
(Ea accident)
$
$
N / A

SUBR WVDADDL
INSD

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
$
$ PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person) COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOS ONLY AUTOS NON-OWNED OWNED SCHEDULED

ANY AUTO

AUTOMOBILE LIABILITY

Y / N WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED?
(Mandatory in NH) DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEEE.L. EACH ACCIDENT EROTH- STATUTE PER
(MM/DD/YYYY) LIMITS POLICY EXP(MM/DD/YYYY) POLICY EFFLTR TYPE OF INSURANCE POLICY NUMBER INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB EACH OCCURRENCE $ AGGREGATE $
$
OCCUR
CLAIMS-MADE DED RETENTION $
PRODUCTS - COMP/OP AGG $ GENERAL AGGREGATE $ PERSONAL & ADV INJURY $ MED EXP (Any one person) $
EACH OCCURRENCE $ DAMAGE TO RENTED
PREMISES (Ea occurrence) $ COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)

CANCELLATION

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
5/13/2026
Marsh & McLennan Agency LLC
Marsh & McLennan Ins. Agency LLC
1 Polaris Way #300
Aliso Viejo CA 92656
Matthew McNab 949-362-6317 [email protected] License#: 0H18131 AIG Specialty Insurance Company 26883 ATHENENVIR Greenwich Insurance Company 22322 Arakelian Enterprises, Inc.

Athens Services, Inc.
14048 Valley Boulevard
City of Industry CA 91746
National Fire & Marine Insurance Co 20079 XL Insurance America, Inc. 24554 Navigators Specialty Insurance Company 36056 Navigators Specialty Insurance Company 36056 1712256840 A X 1,000,000 X 300,000 25,000 1,000,000 2,000,000 X
Y N EG6439324 3/1/2026 3/1/2027
2,000,000
B 5,000,000 X
X X
Y N RAD500042712 3/1/2026 3/1/2027
C
F
X X $10,000,000 X
N 42UMO31038307
CH26EXCZ078SKIC
3/1/2026
3/1/2026
Y 3/1/2027
3/1/2027
$10,000,000 X
25,000
D X
N
N RWD500042612 3/1/2026 3/1/2027
1,000,000 1,000,000 1,000,000
A
E
Pollution Legal Liability N N EG6439324
CH26XSPZ0NT1VQN
3/1/2026
3/1/2026
3/1/2027
3/1/2027
Per Claim
Aggregate
$10,000,000
$10,000,000
The City of Redondo Beach, its officers, elected and appointed officials, employees, and volunteers are included as Additional Insured with respects to General Liability and Auto Liability, where required by written contract, per the attached endorsements. Insurance is Primary & Non-Contributory, where required by written contract, per the attached endorsements.

City of Redondo Beach
415 Diamond Street
Redondo Beach, CA 90277

ADDITIONAL INSURED PRIMARY AND NON-CONTRIBUTORY ENDORSEMENT - ENDORSEMENT NO.

This endorsement, effective 12:01 AM,
Forms a part of Policy No:

Issued to:

By:

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 107427 (12/10)
CI4835
PAGE 1 OF 1

OWNERS, LESSEES OR CONTRACTORS - YOUR WORK

SCHEDULE
Name of Additional Insured Person(s) or Organization(s):

Location(s) of Covered Operation(s):

All other terms, conditions and exclusions shall remain the same.

AUTHORIZED REPRESENTATIVE
or countersignature (in states where applicable)
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY AND

POLLUTION LEGAL LIABILITY POLICY
I. Solely as respects COVERAGE A - BODILY INJURY AND PROPERTY DAMAGE LIABILITY, COVERAGE B - PERSONAL AND ADVERTISING INJURY LIABILITY, and COVERAGE E - ADDITIONAL POLLUTION LEGAL LIABILITY, SECTION II - WHO IS AN INSURED is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for bodily injury, property damage, personal and advertising injury, or environmental damage arising out of your work for the additional insured(s) by or for you at the location(s) designated above.

II. As respects the coverage afforded the additional insured(s) scheduled above, this insurance is primary and non-contributory, and our obligations are not affected by any other insurance carried by such additional insured(s) whether primary, excess, contingent, or on any other basis. 8 AIG SPECIALTY INSURANCE COMPANY

BLANKET WHERE REQUIRED BY WRITTEN CONTRACT EXECUTED PRIOR TO CLAIM OR LOSS.

ALL LOCATIONS OF THE NAMED INSURED
INSURED:

POLICY#: POLICY PERIOD: TO:

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

VHAR 03/13/2020
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

AUTOMATIC ADDITIONAL INSURED
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM

MOTOR CARRIER COVERAGE FORM

AUTO DEALERS COVERAGE FORM
A. COVERED AUTOS LIABILITY COVERAGE, Who Is An Insured, person or organization you are required in a written contract to name as an additional insured, but only for negligent acts or omissions of:

1. You, while u

2. Any other person, except the additional insured or any employee or agent of the additional insured, Provided that:
a. The written contract is in effect during the policy period of this policy; b.
c. nt required by the contract, but in no
event if such person or organization is solely negligent.

B. The Limits of Insurance provided for the Additional Insured shall not be greater than those required by contract and, in no event shall the Limits of Insurance set forth in this policy be increased by the contract.

C. General Conditions, Other Insurance is amended as follows:

Any coverage provided hereunder shall be excess over any other valid and collectible insurance available to the additional insured whether such insurance is primary, excess, contingent or on any other basis unless the contract specifically requires that this policy be primary.

All terms, conditions, exclusions and limitations of this policy shall apply to the liability coverage provi ded to any additional insured, and in no event shall such coverage be enlarged or expanded by reason of the contract.

All other terms and conditions of this policy remain unchanged.

INSURED:

POLICY #: POLICY PERIOD: TO
Arakelian Enterprises, Inc. RAD500042712 03/01/2026 03/01/2027

Redondo Beach City CouncilMay 19, 2026

Redondo Beach City Council
May 19, 2026