To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
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DISCUSSION AND POSSIBLE ACTION REGARDING THE SECOND AMENDMENT TO THE AGREEMENT WITH ARAKELIAN ENTERPRISES, INC. DBA ATHENS SERVICES
APPROVE THE DRAFT TERMS OF THE AGREEMENT AND DIRECT STAFF TO PREPARE THE CONTRACT FOR FINAL APPROVAL AND EXECUTION FOLLOWING CONCLUSION OF THE MAY 19, 2026 PUBLIC HEARING TO CONSIDER REFUSE RATE ADJUSTMENTS
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EXECUTIVE SUMMARY
The City's solid waste hauler, Arakelian Enterprises, Inc., DBA Athens Services (Athens), has proposed a second amendment to its franchise hauling agreement with the City. An outline of the proposed changes and the impact on service rates was presented to the City Council on January 20, 2026. On March 17, 2026, the City Council further reviewed the proposed changes including the bundling of services for multi-family and commercial customers and a reclassifying of larger multifamily properties to have their services provided commensurate with commercial properties. Following the review, and with the updated rate structure settled, the City Council directed staff to move forward with negotiations on terms of a second amendment to the Athens Agreement, initiate a Proposition 218 process, and return with a draft second amendment for Council review and discussion. Terms of the draft second amendment have been negotiated and agreed to by City staff (both admin and legal) and Athens' personnel, including their board of directors.
In connection with the proposed revised refuse rate structure, the City Council authorized staff to initiate a Proposition 218 process and set May 19, 2026 as the date of the public hearing for consideration of the new maximum solid waste refuse rates and fees. If a majority protest does not exist at that time, the City Council may then formally consider approval of the second amendment, including implementation of the new rates and fees on the effective date. This item provides Council wi...
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