TO:Andrew P. Powers, City Manager
FROM:Clifford G. Finley, Public Works Director
DATE:July 2, 2024
SUBJECT: First Amendment to Exclusive Solid Waste Franchise Agreement
RECOMMENDATION:
1. Approve First Amendment to Collection Services Agreement with Arakelian Enterprises, Inc., dba Athens Services (Athens Services) (Contract No. 12672- 2021) for residential and commercial solid waste, recyclable materials and organic waste collection services.
2. Approve budget appropriation and expense in the amount of $350,000 from A/C #631-0000-448-8200 (Solid Waste Landfill Facility Fee) to A/C #631-8420-682- 5640 (Solid Waste Management Fees) for Athens Services Landfill Facility Fee Reimbursement.
3. Find that actions 1 and 2 above are not projects as defined under the California Environmental Quality Act (CEQA).
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
$350,000 Increase to Adopted FY 2024-25 Solid Waste Fund Budget, Fully Offset by Landfill Facility Fee Revenue. $350,000 additional expense from Solid Waste Fund Budget will be fully offset by received revenue.
BACKGROUND:
On March 9, 2021, City Council approved an Exclusive Solid Waste Franchise Agreement (SWFA) with Athens Services for citywide residential and commercial solid waste, recycling, and organic waste collection and street sweeping services, for a 15-year term extending from January 1, 2022, through December 31, 2036.
First Amendment to Exclusive Solid Waste Franchise Agreement July 2, 2024
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On January 1, 2022, Athens Services began residential and commercial waste collection and street sweeping services throughout the City. The SWFA ensured that the City had full compliance with Senate Bill (SB) 1383 and included new collection containers compliant with CalRecycle color standards; bundled three container collection - trash, recycling, and organics (food and yard waste); support for a citywide food recovery program; new clean-fuel vehicles; compliance tracking and reporting through a comprehensive waste reporting system; and expanded free services for residents such as Household Hazardous Waste Home Collection Service, three landfill disposal days a year, and twice yearly bulky item waste (large item) pickup service.
Under the SWFA, residents received an approximately 34 percent reduction in their monthly trash bill over previous rates. In accordance with the terms of the SWFA, annual rate increases have been limited to four percent.
DISCUSSION/ANALYSIS:
Based on the previous two years’ experience under the SWFA, staff and Athens Services have identified some terms of the Agreement that require clarification or changes. The proposed Amendment (Attachment #1) details these recommended changes, which include the following:
•A defined financial commitment from Athens Services to support edible food recovery organizations in the City.
•The availability of an Athens-hosted Waste Reporting System in lieu of a subscription to a third-party hosted service.
•The inclusion of a reference to the Memorandum of Understanding which defines the terms of the Community Support Program.
•A reimbursement to Athens of the Landfill Facility Fees paid by Athens to the Simi Valley Landfill and received by the City from the Simi Valley Landfill under the City’s Landfill Agreement with Waste Management of California, Inc. (Contract No. 4335-1999).
•Clarification that the annual rate adjustment applies to all Maximum Service Rates listed.
•Allowance for service vehicles to be a maximum of 15 years, rather than 10 years, old.
•Additional data that the City requires in quarterly reporting. •One item that clarifies street sweeping services.
•Removal of specific subcontractors that are not being utilized.
The proposed changes will mutually benefit the City and Athens Services by clarifying expectations and services, providing flexibility where needed, and streamlining data reporting. The reimbursement to Athens of the Landfill Facility Fees will result in an approximate $350,000 financial impact to the City, which is First Amendment to Exclusive Solid Waste Franchise Agreement July 2, 2024
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offset by the receipt of those fees by the City from the Simi Valley Landfill operated by Waste Management, Inc. Residents and businesses continue to benefit from the transition to new services at reduced rates that began in 2022.
This recommended action meets City Council’s Top Ten Priorities #6:
“Environmental Sustainability.”
Environmental Review
The amendment items have been reviewed in conformance with the provisions of the California Environmental Quality Act and are not considered a project.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $250 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $250 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $250 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $250 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially interested participant is prohibited from contributing more than $250 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
First Amendment to Exclusive Solid Waste Franchise Agreement July 2, 2024
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F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Sarah McGurk, Sustainability Analyst
Attachments:
Attachment #1 – First Amendment to Collection Services Agreement DPW: 810-40\etm\ev\\Council\2024\070224\First Amendment to SWFA staff report.docx