TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:March 24, 2026
SUBJECT: Consider California Environmental Quality Act Exemption Findings for Solid Waste Franchise Agreement with Arakelian Enterprises, Inc. approved on March 9, 2021
RECOMMENDATION:
1. Receive public comment regarding the applicability of California Environmental Quality Act (CEQA) exemptions to the March 9, 2021 award of the exclusive solid waste franchise agreement with Arakelian Enterprises, Inc., dba Athens Services (Franchise Agreement), including Sections 15301 (Class 1, Existing Facilities), 15308 (Class 8, Actions by Regulatory Agencies for Protection of the Environment), and 15061(b)(3) (Common Sense Exemption) of Title 14 of the California Code of Regulations (CCR).
2. Direct staff to consider the public comments and materials received, if any, and pursuant to CCR Section 15025, make a determination whether the Franchise Agreement award is exempt under CEQA, including under CCR Sections 15301, 15308, and/or 15061(b)(3).
3. Direct staff to agendize the matter for consideration at a properly-noticed meeting of City Council if staff determines that the Franchise Agreement award is not exempt under CEQA, so that City Council may take action to address CEQA compliance.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time required to prepare the report is included in the Adopted FY 2025-26 General Fund Budget.
BACKGROUND:
On March 9, 2021, the City approved the award of an exclusive solid waste franchise agreement with Arakelian Enterprises, Inc., dba Athens Services. City Council determined the award was exempt from CEQA based on staff
CEQA Exemption Findings for Arakelian Enterprises, Inc. Franchise Agreement March 24, 2026
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recommendation. G.I. Industries sued, claiming the City’s approval of the agreement and the CEQA exemption finding violated the Brown Act. After the trial court ruled in the City’s favor, the Court of Appeal reversed as to the CEQA exemption finding, holding that in the context of a public meeting, the Brown Act requires that “before formal action is taken on [the CEQA exemption], the exemption be placed on the meeting agenda and an opportunity for the public to comment.” Additionally, because the Court of Appeal voided City Council’s prior exemption finding based on the Brown Act, a further City Council action is required to address CEQA compliance.
In compliance with the Court of Appeal decision in G.I. Industries v. City of Thousand Oaks (Court of Appeal Case No. B337103; Ventura Superior Court Case No., 56-2021-00554581), the CEQA exemption was placed on tonight’s City Council agenda to provide the public an opportunity to comment.
DISCUSSION/ANALYSIS:
The original March 9, 2021, staff report for the Franchise Agreement award is attached as Attachment #1. The March 9, 2021, supplemental packet containing the staff report recommending the award of the Franchise Agreement be found exempt from CEQA is attached as Attachment #2 and sets forth the basis for the CEQA exemptions.
After receiving public comment and any additional information received at the meeting, it is recommended that Council delegate the exemption determination to staff pursuant to CCR sections 15025(a)(1&6) and 15356. If staff determines that the award of the Franchise Agreement is not exempt from CEQA, staff shall prepare the appropriate environmental document, and agendize consideration of the environmental document for action at a subsequent, noticed City Council meeting.
COUNCIL GOAL COMPLIANCE:
Not applicable to compliance actions.
Attachments:
Attachment #1 – March 9, 2021, staff report for the Franchise Agreement Award
Attachment #2 – March 9, 2021, supplemental staff report in support of the environmental review
CAO:610-70\jb\Legal Files/ Consider CEQA Exemption Findings for Solid Waste Franchise Agreement with Arakelian Enterprises, Inc.